When asked by Katy Huberty of Morgan Stanley about “the potential to move to lower price points on the iPad over time and see significant incremental demand,” Apple’s chief financial officer Peter Oppenheimer answered:
“Look, Katy, we’re just learning about be the elasticity of demand and the $399 price point. It’s doing well. But I have to tell you, the new iPad is on fire, and we’re selling them as fast as we can make them. So we’ll learn more over this quarter especially as we get through the education buying season, which looks terrific for us especially on the iPad.”