Apple Reportedly Considering Lower Cost Componets To Keep iPad 3 Competitive

Concerned About Pricing Issues, Apple Is Looking At Different Suppliers On Some iPad 3 Parts

iPad 3 news emerges today, as apparently, Apple recently surveyed the tablet computing landscape and discovered that its eight hundred pound gorilla known as the iPad line is no longer alone in the field, though still the biggest name. According to reports, Apple’s got some concerns about price structures on the iPad 3, so they may be looking to different suppliers for some of them.

The reports suggest that Apple may be looking to Taiwanese integrated circuits in  a bid to reduce the bill of materials, or the total cost of assembling one unit. And why is it suddenly looking to Taiwan? By those same reports, the issue is one of competition. There are a host of tablet PCs looking to be launched in the second half of this year, and Apple wants to be sure the iPad remains competitive against that very host.

Of course, this has some concerned about quality issues, though there’s really not much a reason to be concerned about that at this stage of the game. The big issue here is that Apple is simply no longer alone in the marketplace, and as such, needs to be concerned about its pricing.

Not that even that is a huge problem in its own right; the iPad 2 was never the cost leader, and assuming you can find them (which is an easier practice now than it was even just a few months ago) you’ll find they’re actually less expensive than others in the market. But still, if Apple’s concerns are valid (and on this sort of thing they often are), we’re going to be looking at a whole lot of new choices coming up in the tablet field soon, and it’s not a surprise to see them want to stay ahead of the curve.

But what do you guys think here? Concerned that Apple may be sacrificing quality for cost-effectiveness? Or do you think they’re just using their market power to get the best prices they can to pass on to the customer? No matter what your thoughts about Apple’s plan, we want to hear about them, so head on down to the comments section below and tell us what you think!

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  • 2 Comments / Add Your Response?

    1. IDB says:

      Apple should not compromise quality for profit…meaning they should continue to use the better quality of materials for all products.
      Apple has no real solid Competition in the market – the name speaks for itself.
      My friends and friends of friends etc….All want apple products, and we are all excited about the soon to be released IPAD3.

    2. I wouldn’t be too concerned about that, IDB–they’re basically just pricing components here. There’s nothing to suggest they’re going to throw quality under the bus with this.