Newsletter Issue #588: Apple Critics Make More into Less

March 7th, 2011

Apple Inc. has a nasty habit of screwing up the timing of the tech industry. On the eve of the release of the highly anticipated iPad 2, other companies are still struggling to figure out how to build their first offerings. Some of the marketing plans are downright stupid, such as Motorola’s decision to sell the Xoom tablet in 3G form, with 32GB storage, for $70 more than a comparable iPad 2.

Does that make sense to you?

This state of affairs appears to turn the conventional wisdom that Apple charges more for their iconic gadgets on its ear. But that pretty much started when the first iPad was announced last year. The predictions had it that the new tablet would sell for $799 to $999, perhaps higher. The entry-level price of $499 was quite unexpected, and Apple has kept an identical pricing structure in place for the iPad 2.

In order to reduce the impact of the second version of the iPad, some industry critics have decided to use the bullet point approach. They will look at the specs of a competing product, and point out where Apple is, well, lacking. The number of megapixels of the built-in cameras are certainly ripe for criticism, although it’s also true that you’re probably not going to use a tablet computer to shoot pictures.

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