back to article Goldman Sachs slapped over iPad price-cut call

Apple is unlikely to slash the price of its fondleslab this Christmas as margins are too low, despite a warning from Goldman Sachs that the premium is out of kilter with hard-pressed consumers and sales could suffer this Xmas. Investment analyst Bill Shope has warned clients to think the unthinkable and closely monitor unit …

COMMENTS

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  1. Anonymous Coward
    Anonymous Coward

    Absolute nonsense

    this "expert" fails to factor in how brainwashed the Apple fanboys are, they will pay the asking price regardless, the proof being there are already much better tablets that are cheaper than the iPad2 (for example the Asus Transfoemr), but they are too blind (or brainwashed) to see.

    1. Chad H.
      Thumb Down

      If it were only fanboys

      Then it wouldnt be selling as much as it is. Looking at figures online it seems that there are 2 or so iPads sold each quarter for each mac.

      It couldnt possibly be because people prefer the user experience on it could it?

  2. Naughtyhorse

    "...currently depressed macroeconomic environment."

    Awww bill - you use your tongue prettier than a 20 dollar whore!

    <whatever you do dont say depression!>

  3. Craig 12

    I'm not sure price has much to do with it... at this time of the year, I might as well wait for the ipad3, as I suspect a lot of ipad1 buyers will do.

  4. C-N
    Devil

    The Vampire Squid says sell Apple?

    Bet that's not what they're telling their institutional clients.

    1. Anonymous Coward
      Anonymous Coward

      Don't you know? Everyone is on the opposite side of the trade to Goldie's prop desk. (allegedly)

  5. Richard IV
    Facepalm

    Thought process

    Chap wants cheaper iPad despite being paid wads of money and more than able to afford one.

    Chap suddenly remembers that he works for big investment bank.

    Chap rephrases "I want cheaper" into "Apple must give me^H^H consumers cheaper"

    Chap publishes "analysis".

    Chap hopes for world to change around him.

    1. Anonymous Coward
      Anonymous Coward

      You missed

      Chap gets paid to write "analysis", making enough money to buy the iPad already on the market

  6. Andy Christ

    Android-based vials?

    They might be vile, but I suspect "rivals" is the word you were groping for.

  7. jai

    shocker!!

    You mean there's an investment analyst that's got no clue what's really going on and is just spouting pure guesswork as actual advice and insight? Say it ain't so!

    I can't believe these guys get paid for this kind of stuff. Even the weather forecasters are right more often than these analysts.

  8. Sooty

    for a start

    "A sub-$400 iPad 2 with 8Gb of capacity"

    the cost differential between making a 8GB and 16 GB must be practically negligible... the flash memory is probably one of the cheapest components!

  9. NightFox

    Apple's premium prices have always been "Out of kilter with hard-pressed consumers", but those hard pressed consumers keep paying them and Apple doesn't seem to be suffering too much as a result...

  10. Yet Another Anonymous coward Silver badge

    Goldman Sachs

    If Goldman Sachs announced it was wednesday you wouldn't believe them!

  11. ben_myers

    Stock manipulation?

    Could this simply be a ballsy attempt by Goldman Sachs to manipulate the price of Apple stock?

  12. Sirius Lee

    Come on guys, the analyst may be from Goldman Sachs but his analysis is based on stats. In his original analysis you'll see he observes that iPads are not shipping in the expected numbers and that the release of Nook and Kindle Fire (the latter getting good reviews for a $199 device) just before Xmas is a real threat to Apple revenue growth. As I understand it, GS have a reasonable investment in Apple and don't want to see their gain eroded by competition.

    Does anyone know why the margins on iPads are supposed to be so low? The hardware is not that expensive. Presumably the rest of COGS is the enormous cost of legal battles around the world, advertising and running a direct sales channel. Any of these factors Apple can choose to change to boost margin.

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