Report says consumers are willing to pay 52% more for an iPad than an Android tablet

The iPad faces increasing price competition from new tablets, but consumers seem more than willing to pay extra for Apple’s hot selling tablet.

According to a new report by wireless and mobile market strategy firm IGR, consumers are willing to pay about 52% more, on average, for an iPad than for an Android-based tablet.

While those figures show the iPad’s continued popularity, the 52% average actually represents a slight dip of 5% from IGR findings after a similar survey late last year. IGR calls the higher price consumers are willing to pay the “Apple Premium.”

In both surveys, consumers were asked the dollar amount that might compel them to switch from intending to purchase an Apple iPad to another, competing tablet.

"Our research shows that consumers are still willing to pay more for an Apple iPad than for competing Android tablets, despite the introduction of new models,” said Iain Gillott, president and founder of iGR. “While the 'Apple Premium' has dropped, it is clear that Apple still commands a significant price advantage in the market."

IGRs latest survey was taken in May before the introduction of Google’s $199 Nexus 7 tablet that’s off to a strong start since its release this month. But it's unclear to what degree the Nexus 7 might hurt iPad sales as many analysts say its prime competitor is Amazon's similarly-priced Kindle Fire. 

The full Apple Premium 2012 report, available for purchase at IGR's website, covers other details including the finding that all consumers are not willing to spend the same amount for a tablet. iGR says it found that there is a relationship between price point and many demographic variables, such as age, marital status, and age of children. 

iGR also says it’s identified relationships between the consumers' current use of technology and how much they were willing to spend on both iPads and Android-based tablets.

Ironically, when the iPad first came out in 2010 it was a surprise to many that Apple priced it so low, $499, the same entry price of the current model, though it also now sells the older iPad 2 for $399. Initially, competitors matched Apple's pricing but many have since droppped their pricing below Apple's. The Kindle Fire and Nexus 7 are priced at $199, though they are also smaller devices than the iPad. 


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Comments 2

Darkseider's picture
Darkseider

This just proves that the average consumer is about as sharp as a bowling ball.

samirsshah's picture
samirsshah

$249 is OK for iPad Mini. I told you so.