iPad There Are Three Different Ipads Available,

iPad There are three different iPads available, all of which are the iPad 2, and the price depends on whether the Wifi-only option is taken or whether the iPad is enabled both for Wifi and 3G. Thus, there are six different price/product/service options available for the iPad: Wifi only Wifi + 3G GB GB GB Store.Apple.com There are a number of different ways to differentiate between heavy and light iPad users.

The main metrics are average daily hours of use, number of apps downloaded, number e-books downloaded and 3G usage. For example, 48.2% of users spend more than 2 hours per day on their iPad. 28.9% say that the iPad has become their primary computer, which would imply heavy usage. A total of 56.1% of users have downloaded more than 20 apps, while 40.8% have paid for more than 10 and 65.3% have paid for more than 6 and 59.4% have used more than 6 apps on a daily basis above and beyond the pre-paid apps.

With respect to 3G, 56.7% have a data plan. It is estimated that the heavy user may spend up to double what a light user would spend in the first year, based on their usage patterns and the likelihood that a heavy user would buy a more expensive iPad to begin with. With these rough criteria in hand, the heavy user represents between 40-50% of all iPad users. These users are characterized as those users who have a data plan, who have downloaded over 20 apps and paid for more than 10 apps.

Most heavy users will use their iPad for multiple tasks, beyond the core games and reading of books. The heavy user will spend 2+ hours per day on his or her iPad. In addition, it is believed that one-half to two-thirds of all heavy users will use the iPad as their primary computer. 3. To determine the cost for the average light user, some assumptions need to be made with respect to the specific amounts of each product/service that will be purchased.

The following assumptions are used in the calculation for a light user: half will purchase a 16GB, half a 32GB half will purchase with 3G, but only 50% of these will actually have a data plan 5 apps will be paid for, at an average cost of $4.67 for paid apps (Schramm, 2010) light users will opt for the 2G rate plan ($25) light users will purchase $50 worth of accessories (keyboard, headphones, dock, cover, etc.). The total estimated cost for a light user therefore is as follows. The iPad average cost will be (.25)(499) + (.25)(629)+(.25)(599)+(.25)(729) = $614.

The apps will cost $23.35. The rate plan for a year, for half of all 3G iPads, will be (25)(12)(.5)(.5) = $75. With the accessories the total estimated average cost of one year of iPad ownership for a light user is: $614 + $23.35 + 75 + 50 = $762.35.

For a heavy user, the following assumptions are made: half will purchase the 32GB, half the 64GB a weighted average of the heavy app categories gives an average of 22 paid app for heavy users will opt for the 5Gb plan ($50), on average, but 75% of heavy users with a 3G will have a data plan heavy users will purchase an average of $100 in accessories. The total estimated cost for a heavy user therefore is as follows. The iPad average cost would be (.25)(599) + (.25)(729) + (.25)(699) + (.25)(829) = $714. The apps will be (22)(4.67) = $102.74. The data plan will be (50)(12)(.5)(.75) = $224.

Thus, the total estimated cost of one year of iPad for a heavy user will be: 714 + 102.74 + 224 + 100 = $1,140.70. 4. When deciding how to price the iPad, Apple must consider a few different pricing options. Penetration pricing will allow Apple to build market share and then retain it in the face of competition. Strategic pricing can allow Apple to price for a differentiated market position (i.e. higher than the competition).

Apple also must take its product line into consideration -- it must price higher than the iPhone but lower than the MacBook in order to have a good space for the iPad. Apple must also consider total revenue. There are times when the core product can be sold as a loss leader because the downstream revenue is so significant. With the iPad, however, this does not appear to be the case.

Even heavy users only generate around $100 in app revenue, of which Apple only takes a small cut and the developer takes most of the profit. Apple has a similar deal with respect to the suppliers of accessories, if it gets anything at all. Apple may.