Saturday, July 25, 2009

What Will Apple’s Big Tablet Cost?

If doesn't introduce a soon, we'll all be sorely disappointed. With all the ongoing speculation about the alleged -on-steroids, I feel like the device is already here.

Today's scuttlebutt from has the Big Tablet arriving early next year, a prediction that matches one two months ago by .

So what do we know about the tablet? Reports say it's an , a handheld slate that's large enough for HD movies, video gaming, and Web browsing without all the window-resizing and screen-tapping calisthenics that smartphone users endure. Apple Insider says the tablet will feature 3G broadband, which seems logical. And since we're speculating here, I'd like to request Wi-fi, Bluetooth, and GPS as well.

Name Your Price

Specs aside, what should Apple charge for the Big Tablet? Some reports say $800 is likely, but that seems high for a consumer electronics device. My prediction: $499. Here's why:

According to a 2007 study by the Consumer Electronics Association (CEA), the average American household spends about $1200 annually on electronics products. Would the typical household blow two-thirds of its tech budget on one handheld device? Probably not.

And that CEA study was two years ago -- before the current recession and consumers' belt-tightening ways. To me, $500 seems like the sweet spot for a premium consumer gadget.

And then there's Apple's product lineup. Currently, there's a big gulf between the 32GB iPod touch ($399) and the $999 MacBook. Let's assume Apple drops the iPod touch price, as it did recently with . The Big Tablet would fill the void nicely at $499.

Of course, for Apple to achieve its desired profit margin, that $500 price tag may include a 3G service contract with a major wireless carrier. Given the enormous success of the iPhone, it wouldn't be surprising if AT&T, Sprint, or Verizon would be willing to subsidize the tablet's cost to sign up new subscribers. are becoming increasing common, so the subsidized model for consumer hardware is already in place.

And, no, I didn't call the Big Tablet a netbook. .

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