The tablet market continues to grow, but how much are consumers willing to spend on these popular devices? While there are many answers to that question, iGR’s research suggests that the main variable is whether or not the tablet is an Apple iPad.
In late 2011, iGR published a report called The Apple Premium in which it quantified the dollar amount that might compel an individual to switch from intending to purchase an Apple iPad to another, competing tablet. iGR found that a competing tablet would have to be significantly less expensive than the baseline $499 iPad 2. iGR called this price difference the “Apple Premium.”
In its May 2012 consumer survey, iGR repeated the question and found that the “Apple Premium” has dropped 5 percent — consumers are not willing to pay quite as much of a premium for an iPad. However, there is good news for Apple: consumers are willing to pay 52 percent more, on average, for an iPad than for an Android-based tablet.
“Although there is a slight decrease in this Apple Premium from the same study in late 2011, it is still a very significant difference,” said Iain Gillott, president and founder of iGR, a market research consultancy focused on the wireless and mobile industry. “Our research shows that consumers are still willing to pay more for an Apple iPad than for competing Android tablets, despite the introduction of new models. While the ‘Apple Premium’ has dropped, it is clear that Apple still commands a significant price advantage in the market.”
iGR’s research shows that all consumers are not willing to spend the same amount for a tablet. iGR found that there is a relationship between this price point and many demographic variables, such as age, marital status, and age of children. iGR also found relationships between the consumers’ current use of technology and how much they were willing to spend on both iPads and Android-based tablets.