Apple News, Analysis and Podcasts

If Boy Genius reporting is accurate, Apple is setting the stage to make the higher educational sales competition a no-contest event this summer. The report claims Apple will be offering $200 off any iPad with the purchase of a Mac, which is an additional offer added to the typical free iPod touch offer given to students during the educational buying season. Apple offering iPads as low as $299 – it's a game over situation.

If you have any form of youth in the house and were considering a Mac or iPad, this "may be coming" offer marks the time to get some new Apple goodness. Students are on, or around, campus most of the time, thus a majority are likely to just go with an iPad wifi model. But many students will consider a 3G version with Apple's tempting discount, pitting Apple against its carrier partners, specifically Verizon. 

Verizon is currently pushing anything but iPad tablets, using their typical two-year contract subsidize model to sell product. Best Buy and their mobile stores also pushing Android tablets, using contracted solutions to undercut iPad pricing. But for students who are getting a Mac, picking up an iPad 3G for as little as $429 without any subsidy or long-term contract is a no-brainer.

As the world continues it's shift to all-things-mobile, tablets are moving front and center and Verizon seems especially keen at capitalizing on another realm of monthly service fees through these devices. Apple's near 90% dominance in the tablet space puts carriers in awkward position, squarely pitting them Apple's high flying tablet. While carriers sell iPads, they are running from them as best they can in a vain attempt to ensure Apple doesn't control the shots. Consider the following iPad issues carriers must deal with:

• 3G iPads require no lock-in service contract to compete in price. The result is carriers have no guaranteed revenue stream from 3G iPad buyers.
• AT&T and Verizon selling 3G iPads cannot lock the user into a predictable upgrade timeline. The customer is free to sell their device and move onto any other product and service at will.
• With a $200 reduction, students can get into an iPad 3G without being locked into a two-year monthly that they (or their parents) can't, or do not want to afford.
• Carriers stand on the brink of over contract fee-ing their users to death, and Apple's aggressive move to offer iPads as low as $299, will act as a massive shut-off valve for any students considering something other than an iPad. The result for carriers is inventory is likely to pile up, factory orders are likely to drop, which won't help competing tablets pricing any time soon.
• Carriers can't counter Apple's student discount. What are carrier to do, offer another $200 off for a tablet and netbook? There's no margin left to give-a-way from the start...

If BGR's report comes to pass, a MacBook air and iPad will sell to students for as little as $1,249. A year ago, this combination would have cost a student $1,949, delivering lesser product (especially the MacBook air). Students that were about to purchase a 13" MacBook Pro for $1,149, guess again, they will opt for a MacBook air plus iPad. Let the stampede begin, while carriers look on finding themselves helpless to counter Apple's assault.

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