According to Radio Shack Associate Albert Burgoyne, Apple isn’t letting them apply sales to the iPad 2, but Apple may let them provide discounts on the original iPad once the new device begins to ship.
The move, if true, isn’t entirely unexpected. Apple has a tendency of sliding prices backwards on older iOS devices. The iPhone 3GS, originally Apple’s top priced phone on release, saw its price slip into the iPhone 3G price bracket once the iPhone 4 shipped. Over time Apple then downgraded the 3GS price to $49.00.
It’s pretty evident that Radio Shack is hoping that price reductions on the iPad 1 will result in an increase in accessory sales. But what’s amusing is that this might be the first time a supplier has admitted publicly that they make very small margins on selling Apple products.
“Radio Shack stands to make more money off of iPad screen protectors and cases than on the actual iPad 2,” Burgoyne said. “From what I understand, businesses like Best Buy and Amazon aren’t making that much money per device but with the amount of sales on the iPad, it certainly makes sense. Still, I think we do just fine on cases.”
The Chicago Indie Press has pointed out that Radio Shack and Apple still don’t have an agreement in place for the iPad 2, and that they are still negotiating rights to sell the iPad 2.
Header Photo Credit: rebeca :)
Article Via The Chicago Indie Press