Price cut

Survey: 20% of non-iPad buyers would buy a $399 iPad 2

March 8, 2012: 11:45 AM ET

A relatively small price cut, it seems, can make a big difference

Source: RBC (taken Nov 30, 2011-Dec 16, 2011)

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:

Our survey also asked about a potential $100 price cut to the iPad 2 and the responses indicated 15-20 million incremental US unit demand and 38 million global demand. For reference, each incremental one million iPads could add $0.20 of EPS.

A $100 price cut on the iPad 2, it turns out, is exactly what Apple (AAPL) delivered on Wednesday.

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