The $399 iPad 2 Is Selling

The ever-astute Matt Richman noted yesterday that average selling prices are down for both the iPhone and iPad:

The $399 iPad 2 must be selling very well for it to make iPad ASP drop more than 8 percent in one quarter.

Tim Cook, during yesterday’s conference call:

On iPad 2, with the change in the entry price to $399, we’re actually thrilled with the results that we’ve seen; although as Peter said, it’s only been a few weeks and so it’s too early to come to a clear conclusion. But from what we are seeing, this unlocked some education demand — that is, probably a more price-sensitive customer — also in several other countries there was a marked change in demand at that price point. And so on the early going, we feel great about it.

In other words: the $399 wasn’t intended simply as a way to get people in the door to be upsold to higher-priced new iPads. It was meant to sell, to expand the iPad user base in price-sensitive markets.

Wednesday, 25 April 2012