" I can't imagine the value proposition for a new iPad 2 is at all attractive at that price point.. "
Its interesting how most people here assume that the world at large makes same choices as themselves. Consider iPhone pricing: Apple has been selling previous years models for $100 less than the latest version, yet they sold millions of outdated iPhones even in the US.
Not everyone wants the latest gadget or cares about the greatest tech specs as long as they can extract the desired utility at the least possible price. There are laggards in the adoption curve who are more price sensitive than the early adopters.
I'm a victim of this fallacy myself. I used to wonder who on the earth is clicking on those ads displayed next to Google search, why don't everyone just install AdBlock on their browsers? Yet Google raked in billions of dollars as people clicked on those ads that I considered spam.
Its interesting how most people here assume that the world at large makes same choices as themselves. Consider iPhone pricing: Apple has been selling previous years models for $100 less than the latest version, yet they sold millions of outdated iPhones even in the US.
Not everyone wants the latest gadget or cares about the greatest tech specs as long as they can extract the desired utility at the least possible price. There are laggards in the adoption curve who are more price sensitive than the early adopters.
I'm a victim of this fallacy myself. I used to wonder who on the earth is clicking on those ads displayed next to Google search, why don't everyone just install AdBlock on their browsers? Yet Google raked in billions of dollars as people clicked on those ads that I considered spam.