- Goldman's Bill Shope (Buy, $560 PT) is nudging his FY14 Apple (AAPL +0.8%) estimates higher following yesterday's iPad launches (I, II), arguing the quality of the iPad Air and the retina Mini's price points should yield higher iPad ASPs and unit shipments.
- Thanks to a mix shift towards the Mini, Apple's iPad ASP has been trending lower, and was at $437 in the June quarter.
- Meanwhile, Lazard's Ed Parker is pleased with the huge incremental margins Apple continues to see on higher-capacity hardware, as well as its willingness to provide free software to get consumers to buy.
- Though NAND flash prices have fallen plenty over the last three years, Apple still charges $100 more for a 32GB iPad than a similar 16GB iPad, and another $100 more for a similar 64GB model. Google and Amazon only charge $40 more for 32GB versions of the Nexus 7 and Kindle Fire HDX. Another $40 gets Amazon customers a 64GB HDX.
- Not everyone buys into the wisdom of Apple's pricing strategy, which follows a Q2 for which IDC estimated the company's tablet unit share fell to 32.4% from 60.3% a year earlier.
- Troy Wolverton: "You know things are out of whack when the best-priced iPad still costs $500 and Apple is offering a 2-1/2 year old model at a price that is $40 more expensive than a comparably sized -- but brand new -- Samsung tablet."
at CNBC.com (Nov 19, 2014)