←back to thread

292 points kaboro | 1 comments | | HN request time: 0s | source
Show context
snarkypixel ◴[] No.25058939[source]
>> The iPad has since recovered from its 2017 nadir in sales, but seems locked in at around 8% of Apple’s revenue, a far cry from the 20% share it had in its first year

For me, the reasons are that I love my current Ipad pro, I don't have a good reason to upgrade it, and the pricing isn't advantageous.

I change my Macbook often because of work-related reasons (I.e. when changing job I need to get a new one)

I change my iphone often because the new ones have a big enough differentiator (for me at least), but more importantly, the way the pricing is structured with my cellphone provider, I almost get it for free. (I.e. I had to upgrade my plan to get more gig/months and a few other features so I only had to pay $200 for the new iphone 12).

But for the iPad pro? I'd need to pay the full $1500 upfront and the new one doesn't offer a big enough value add compared to the previous ones.

replies(2): >>25059073 #>>25059535 #
isthatsoup ◴[] No.25059073[source]
You are aware that just because the true cost is obfuscated by the cell payment plan that doesn't mean you aren't paying for it in exactly the same way as the ipad pro, which you could also buy on a finance plan. There is no such thing as "free" or "almost free", you are paying for it.
replies(5): >>25059883 #>>25059992 #>>25060426 #>>25061178 #>>25062939 #
1. coryfklein ◴[] No.25059883[source]
This doesn't seem quite so obvious to me.

1. Do we know what the contracts between Verizon-Apple look like? Verizon may get discounts for buying in bulk or for being a strategic partner.

2. Cell providers (like Verizon) may be funding OP's iPhone 12 with the monthly-payments of other customers that don't exercise their ability to upgrade their phone exactly every 24-months. I think this group may actually be rather large.

3. Interest rates for financing your iPhone via your cell provider's 2-year contract plan are likely lower than financing an iPad on a credit card or other third-party financing.

All of the above likely combine to make the iPhones proportionately cheaper than iPads, possibly significantly.