A relatively small price cut, it seems, can make a big difference
In a proprietary survey conducted last fall and released Wednesday, RBC Capital’s Mike Abramsky asked some price-sensitive customers who said they had no intention of buying an iPad whether a $100 price cut might change their minds.
Among 1,100 respondents, 17% said they would be “somewhat likely” to buy a $399 iPad and 3% said they would be “very likely” to do so.
A separate survey conducted for Morgan Stanley got similar results. According to Katy Huberty:
A $100 price cut on the iPad 2, it turns out, is exactly what Apple (AAPL) delivered on Wednesday.