Here are some interesting bits from transcript of Apple's Q2 2012 Results Earnings Call on April 24. When asked about how the iPad 2 was doing at lower entry price ($399).
Tim Cook:
Peter Oppenheimer:
Tim Cook:
Tony, on iPad 2, we're -- 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 make a -- come to a clear conclusion. But from what we are seeing, this unlocks 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. But I'd also point out that the new iPad is -- was current -- was supply constrained last quarter for the full 3 weeks or so it was shipping and is actually still constrained. And so the mix of the new iPad to the iPad 2, we're not certain of what that is yet. But we are certain, with what we've seen so far, that the absolute sales of iPad 2, at least in the early going, is very exciting.
As you know, we launched mainland China in January of this year, and so China was not able to get into the Q1 period. So all of that is in Q2. We also have very strong demand for iPad 2.
Peter Oppenheimer:
Look, Katy, we're just learning about be the elasticity of demand and the $399 price point. It's doing well. But I have to tell you, the new iPad is on fire, and we're selling them as fast as we can make them. So we'll learn more over this quarter especially as we get through the education buying season, which looks terrific for us especially on the iPad.