Hacker News Reader

Exactly - the premise of the whole article is incorrect.

The conclusion of the article is that by pricing relatively low, Apple makes "the attractive new market for tablets a lot less attractive for companies planning to sell less than 10 million tablets this year."

While the claim that the new iPad is cheaper than its predecessor aims to highlight Apple's pricing strategy, it is not a premise. Even if the iPad 2 was more expensive than the original iPad, it could still be cheap in relation to competitive offerings. It could be sold at a price allowing only for small profit margins without economies of scale. His premise is that it is.

No. The article states that Apple has priced their tablet $100 cheaper than the first iPad; it surmises due to high competition in the marketplace, Apple have adjusted their pricing structure to gain a competitive advantage.

This is a premise and it's also incorrect.

The iPad is being sold at the same price as the previous offering. They haven't adjusted their pricing strategy.

Reply on news.ycombinator.com