When Apple announced its first iPad in 2010, the Wall Street consensus expected the price to be above $900. The device that gave birth to the modern tablet industry instead-debuted at $500, shocking many observers. Yet despite the notably low initial price, Apple’s iPad sales lost their growth momentum-in 2013 and by the beginning of 2014, Apple was reporting declining sell-through volumes. What happened? The flood of $200 Android tablets and phablets sucked the growth out of-iPad sales in about three years, largely because Apple refused to offer substantial price cuts to-even the most basic iPad. Obviously, Apple prioritized profit margins. It’s also speculated that since many Apple fans splurge on upgrading to a new iPhone every 12 months and/or



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