Apple going to introduce “breakout” product with mass-market appeal as consumers wait for the price to drop below $499 and for more publishers to get on board, Piper Jaffray & Co. said..
“It needs to be $300 to $400,” said Gene Munster, an analyst with Piper Jaffray in Minneapolis. “It’s an amazing device, but investors should have measured enthusiasm about how long it takes for something like this to gain traction.”
Chief Executive Officer Steve Jobs introduced the iPad yesterday, pitching it as a “magical” new category of mobile devices between Apple’s MacBook laptop and the iPhone. The iPad, with a 9.7-inch (25-centimeter) color touch screen, lets users play music, videos and games, check e-mail and surf the Web.
Apple will start selling three models in the U.S. in March, priced between $499 and $699, that let users connect to the Internet over Wi-Fi networks. Three models that work with AT&T Inc.’s 3G wireless-phone network will go on sale in April for $629 to $829, with an additional $14.99 or $29.99 a month for a service plan.