iPad Air Price Will Bite Apple: Kedrosky

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Oct. 22 (Bloomberg) -- Bloomberg Contributing Editor Paul Kedrosky discusses the pricing of the new iPad Air with Emily Chang on Bloomberg Television's "Bloomberg West." Jon Erlichman also comments. (Source: Bloomberg)

Most basic model is 16 gigabytes.

The earlier generation will be priced at hundred 99. want to bring back in paul.

I am already seeing people not happy about the price point here.

What do you think?

Is it too expensive?

They are still following this bmw playbook.

They believe they can maintain their margins and the relatively insensitive to what happens with regard to market share in implications for growth in other markets.

It is entirely an understandable instinct.

They really matters whether or not you are in a dominant position.

People do not i software.

This will come back to bite them.

The comeback much sooner than people would like.

It will be shipping to begin with.

We are not getting the range of colors.

It looks like it will only be coming and black-and-white.

What do you make of that?

My only counter argument is that nokia just unveiled its own tablet.

It was not cheap.

They said that this could be a no go.

Probably so very justified in starting a new ipad at $499. i get it.

I know what consumers are crazing.

They want the latest and greatest.

Apple is playing a chess game.

They have the same conversation when they unveiled the lower price new iphone vocus on the price market.

That is not seem low enough.

Apple has the flexibility to bring these down a products are not selling.

That is what they could do if it does not sell.

They have a pretty good understanding.

This is something that plays with what they are looking for.

They have unveiled the ipad mini.

It does come with the ipad screen.

It appears that they will start shipping on november 1 including china talking -- talking about the display.

One of the most requested features was this improved display.

What do you make of it now that we know tomorrow -- what do we know?

This does not really compare with other tablet on the marketplace.

We are offering higher resolution.

All of the hyperbole and at trinity's aside, what is really happening here is a feature for teacher game of you have this, i have this.

We go back and forth.

Whenever you get to that point, market very quickly become about rice and not features.

Consumers cannot tell a difference anymore.

It will continue to be pricing pressure.

I can buy this from me.

I think it will be to apple detriment over time.

It is also going to have the faster chip which is also now in the ipad air and iphone 5 bass.

Were saying maybe it did not necessarily need it.

It looks like this is coming in black and white starting at $399. the result ipad mini sticking at around $299. pricing is so important.

I was seeing if they would put this on the existing ipad mini.

They're going to go after some market share.

It is interesting to see them increase the price of this new ipad many.

Maybe it will offset the did and.

I think it would have been a bolder plate to keep this at a lower price.

If you are apple and you know you can charge the same amount of money, this is something that plays well on wall street.

I'm really not surprised to see them go a little higher with the new device and a little bit lower with the existing.

There are not new colors.

There are new colors for the smart cover.

They come in and additional

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