Comment by jusben1369 | Hacker News Reader

Comment by jusben1369 | Hacker News Reader

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"Apple would never even show a competitor on their site, because they are the market leader.." - One thing that struck me from the iPad Mini announcement was just how much time they spent comparing it to the competition - a sure sign that they really do think there is competition now. Then they disappoint on the iPad numbers in their latest earnings - chalk that up to people waiting for iPad Mini's but that seems like only half the story - and I think we've got a real interesting battle on our hands.

I wonder if Google was brilliant or lucky pricing the Nexus 7 at $199. They created this dilemma for Apple. They can't have the Mini cannabalize the more profitable iPad (the % of which must increase measurably by every $20 price differential) so they can't get close to $199. Amazon and Google smell blood in the water. iOS and the ecosystem is clearly superior to its Android brethren right now. However, a 65% premium for a device many acknowledge is a web surfer/facebook/email checker feels too rich. These guys will get a solid toehold in the market and in 2 - 3 years from now there will be an S III equivalent to the larger iPad's.

"Amazon and Google smell blood in the water."

Apple made itself vulnerable to this sort of attack by basing building so much of their recent advertising campaigns upon display specifications - i.e. retina.

By focusing on something which is easily (and perhaps misleadinly) reduced to numbers, pixels, they have opened the way to the sort of simple value proposition Amazon's page suggests.

The "brilliant" part was convincing people it was $199, whereas in fact it's pretty close to $250 after shipping. I ended up buying a 16GB model ($275 including shipping) because the price difference was so small.

Though now with the 32GB at the old 16GB price it's an even better deal, advertised at $249 or $275 in the end, either way it's a great price.

Edit: Wait, you say the 8GB $199 is close to $250 after shipping, but the 16GB is $275 including shipping? Which is it? Either shipping is close to $50 or $25 exactly. Seems like you are trying to stretch the facts to justify your purchase.

I hope he explains, I am having a hard time just now trying to find how someone would be able to spend $50 on shipping unless they were wanting to overnight it.

I did notice that as of today 10/29 Nexus 7 prices/configurations have been updated, so it is now 16GB for $199 or the new 32GB for $249. The 8GB model is discontinued.

When I bought it (at launch) the 8GB model was just under $250 including shipping, and the 16GB model was $275. (I checked my receipt.) The prices have changed somewhat since then.

In any event, the $199 price struck me as highly misleading at the time.

I have the 8 GB Nexus 7 and I bought it at launch. I just checked and the total price I paid (device + shipping + tax) came to $230.03. I don't remember which delivery method I chose, perhaps you chose an expedited shipping option?

$230 is closer to $250 than $200. Memory plays tricks so probably that was the figure I baulked at.

And note that I paid $26.44 shipping + tax on a $249 base price, so somehow my shipping was significantly cheaper than yours.

You can visit a local retail store to buy it for $199 with no shipping costs.

Where does the extra $50 go for shipping?

I don't recall the details. It's not just shipping -- unlike Amazon, Google actually charges sales tax (not a criticism of Google btw -- I think Amazon's sales tax advantage is horribly unfair to other retailers). For the model I eventually did buy (16GB, which was at that time the top-of-the-line) I paid about $25 in shipping and tax.

What I can verify is that I paid $275.44 for a "$249" 16GB Nexus 7 whereas a Kindle Fire HD would actually be $199.

Google (nor does Amazon) "charge" sales tax. They collect sales tax on behalf of the state.

Like other businesses, Amazon collects sales tax in states where it has a physical presence (which is a probably a different list of states than for Google). For example, New York State residents pay sales tax on Amazon.

Thanks for clarifying that.

It's amazing that a complete computer with screen and a multitouch interface sells for $275 or $199. $200 is how much a couple people can easily spend in one day at Disneyworld, or the price of a night at a decent hotel and a couple restaurant meals.

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