Lucrative margin for the storage bump
As we told you yesterday, Apple confirmed that they will be producing a new 128GB version of their latest generation of iPad. The news has left many scratching their heads as Apple has the new models checking in with a $799 price tag for the Wi-Fi only version, and an almost unbelievable $929 for the 4G LTE version. Yes, that’s right: you can own the low-end 11-inch Mac Air for $70 more than what the 4G LTE version of the 128GB iPad costs.
The trend of Apple bumping up the price by $100 on each step you move up on the Apple iPad ladder is no surprise. While it keeps things simple, the move follows favorable pricing of the NAND flash that is used in the iPad; and a hunger by many buyers to simply have more storage for more stuff. Multiple movies and lots of music and some apps start to add up and despite the price, the 128GB model will find buyers eager for enjoy the kind of space it provides.
So what does this mean for Apple and its low-end notebooks? Well, that remains to be seen. Many analysts believe that the trend toward tablets will continue, but it is unknown if this will eliminate the need for low-end notebooks. We can see, however, that many manufacturers will continue to focus on tablets as that is the sexy flavor of the moment; but with its large application pool and large storage, the 128GB iPad is a true alternative to the low-end notebook for sure.