Some people haven’t been paying attention for the past three decades, so I have a newsflash for them: Apple sells premium products at premium prices to premium customers.”
The latest “shock” to the perpetually Apple-ignorant on Wall Street is the iPad mini, which starts at US$329, not the $199 or so that iPad wannabe outfits charge for their ecosystem-free, tiny screen, cheap plastic slabs of junk. Whoever thought Apple was going to play at the bottom of the barrel either hasn’t been paying attention or was born yesterday. Wake up or have a happy birthday.
Apple’s Phil Schiller told reporters as much today following the iPad mini’s debut, saying he expects consumers to recognize quality and be willing to pay for it.
And those who won’t deserve their fate.
“Theirs is made of plastic,” Schiller said, referring to the Android tablet. “The entire Android product is thicker and heavier.” Not to mention that they have no apps beyond upscaled phone apps and random “marketplaces” full of malware.
Amidst a raft of analysts who don’t, Janney analyst Bill Choi gets it, writing, “We don’t think Apple needs to compete aggressively on price against mini-tablets from Android; Apple continues to sell a premium product in the fast growing tablet market at premium price points.”
Listen, if you can’t afford an iPad mini, you’re not in the target market. Stop whining. Nobody cares. Developers aren’t interested in those who can’t muster at least $329 for iPad mini. Neither are advertisers. Neither is Apple, who are running a business, not a charity. If you want an iPad mini, but you can’t afford it, either save up for one or trot on over to Costco and settle for a cheesy, plastic, tiny screen pretend iPad mini and all that doesn’t go with it. The choice is yours. It’s like an IQ test.
So, to recap: With iPad mini, nothing has changed. Apple sells premium products at premium prices to premium customers and, when all is said and done, they will sell hundreds of millions of iPad mini units worldwide.
SteveJack is a long-time Macintosh user, web designer, multimedia producer and a regular contributor to the MacDailyNews Opinion section.
Yep.
Whoa…
A comment from SteveJack.
This must be a momentous occasion to draw you out from your hole to comment.
Love the: ‘Apple, who are running a business, not a charity.’ comment.
“If you want an iPad mini, but you can’t afford it, either save up for one or trot on over to Costco and settle for a cheesy, plastic, tiny screen pretend iPad mini and all that doesn’t go with it. The choice is yours. It’s like an IQ test.”
Delicious.
If you don’t read MDN, you don’t know Jack!
Exactly! I wrote (here) before the release of the mini, that I didn’t want a $199 mini iPad that was a plastic peice of crap like the nexus & galaxy with an logo on it (running iOS). I wanted the same stunning quality, attention to detail, aluminum case, and premium electronics (faster and longer battery life) that Apple has in it’s other products.
The people who want a $200 mini tablet, should buy it (and suffer) We apple fans wanted (and got) a REAL iPad, only a bit smaller and are more than willing to pay a small premium over poorly functioning plastic garbage like the google tablet or the kindle fire.
Great analogy. Your IQ has a direct correlation to purchases and even political party choice.
Yup is right, heck I’m happy it wasn’t priced at $350. I was looking for a connector cord the other day and a tech sales person told me that he had it or could order it no matter what it was but I should bring in my portable just to make sure it fit. When I brought in my G4 Mac, he could not believe it. Then I told him that the machine still ran one the latest OSX operating systems, and the latest web browser. He took a look at the connector and his reply was… oh never seen anything like that, you’ll have to go to an Apple store.
They just don’t get it, computers don’t have to be disposable pieces of stuff that get opened up every weekend by the lads over a few beers to upgrade the sound card, the hard drive, the RAM, the video card so they can play games.
The price is great.
Considering the build quality, the price is definitely in line. It’s not going to be duplicated by a $199 tablet.
Wall Street doesn’t seem to value quality or customer support when both factors contribute to gaining repeat customers year after year.
I just don’t get a group of people that don’t value craftsmanship but prefer for companies to put out low quality devices to consumers. I was never taught that way growing up. We aspired to owning and producing higher quality products. It’s fine that Google and Amazon produce cheaper products, but that’s no reason to punish Apple for trying to reach more discerning consumers.
Thanks for your reply, and your insight. I appreciate, as you indicate, the value of craftsmanship (craftspersonship for those that want to be politically correct, or craftslifeship for those that want to be polytickally correct).
However, I also believe that there is a place for so called cheap products. For example I have a great pair of hiking boots, that cost me a premium price, they have lasted me for years and I use them when appropriate. I don’t mind buying some low budget shoes that will last only a year if I am lucky, as I will use them to trash around in puddles and mud without worry about them.
When it comes to computers, I want the best, and Apple, since the beginning has been a company where the software people talk to the hardware people. It makes for elegance of design in both their computers and the software interface, which gives me a competitive edge. Now if I were into computer gamin or tinkering, yup, I’d probably consider a Windoze computer but I’m not.
Wall street does not see this, as you pointed out. Fortunately they can only hold the stock back so much, and over the long term their attempts have been and will continue to be futile.
@Road Warrior
You are so correct. Wall Street does not get it. They only look at the absolutes without looking at the imagination behind the products. “What is it – instead of what could it be” They are so stupid. Let them eat cake.
“Considering the build quality, the price is definitely in line. It’s not going to be duplicated by a $199 tablet.”
It’s funny how the only people who don’t seem to recognize the value of build quality are the financial analysts. The ever growing numbers of Apple customers do. There are cheaper options for every product Apple makes.
I don’t get some of the stupid comments on this forum. Apple is for the wealthy or weath-impersonators. The other plastic products are for the poor peeple. If I want to pay too much for aluminum and glass, that is my business and no one elses. So stop the bitching! I would have paid $499!! Take that ot the bank…
cheap plastic? know what else is made from ” cheap plastic ? high end aircraft parts and high impact sports equipment. polycarbonate is one of the most durable and versatile man made products ever known, and is stronger than a lot of maluable alloy metals, whch i might add are used to make soda cans. you apple people crack me up. btw im not a fanboy. i work in the “cheap plastic” industry.
Another thing the ANALysts seemed to have missed: Google and Amazon are making NO MONEY on their tablets.
AppleInsider is reporting that one of the two suppliers for the iPad mini screen is having production problems (Apple chose not to use Samsung as a supplier ). Effectively leaving Apple with one supplier. Meaning that they will be far short of being able to supply enough minis. If this is true look out below because that stock price is going straight down. And I’m an investor so I hope not. But that’s all Apple needs now with things not necessarily going their way lately. We should find out sometime Wednesday how accurate this report is. Geez! And earnings is Thursday. Oh boy! This could turn out to be a really rough week. Surprised MDN hasn’t reproduced this story? It came out Wednesday at 1:49 PM.
Unsubstantiated rumours are what drives the Stock Market to make short duration swings. APPL is a favourite. I’m not saying it isn’t true, I’m only saying that APPL is for folks who are comfortable with long term investments, or for people who can monitor it constantly and even perhaps understand it. In the final analysis, the question to be asked is: “Is the company making money?”
i’ve been investing in Wall Street for decades. There isn’t much that I haven’t seen and all that time. I think I certainly understand how the stock market works by now. The stock market moves on rumors but also moves on facts. Never assume that because someone points out something factual about your favorite company that it’s not true. Never become attached to your investment. First rule investing, never fall in love with your stock.
I’ll never understand how Wall Street doesn’t understand the connection between price and profits. If they’re unhappy that the price of the iPad Mini is too high, then why are they even more upset when Apple’s profits fall a couple of percentage points on a product line. There’s no other way to keep profits high if the company is already lean on component pricing and assembly. Apple must charge more, especially if the build quality is kept at a higher standard which reviewers of the iPad Mini said was so.
Not necessarily true. The Air and iMac are on par or below with “pc’s” that have the same specs. If Sony sold the air, it would be $3000.
Apple invented the category. They control supply. It costs Sony more to make plus they still feel their name justifies a premium
Ultra books aren’t making the sales originally anticipated because they can’t make good stuff at Apple prices. So you get expesive meh.
Couldn’t have said it better
I wish it was $299 but yep.
You can spend $30 on parking these days.
Hey you can easily spend $329 taking your cat to the vet.
$329 for a full-fledged computer you can hold in one hand is cheap. The thing has more processing power than my last desktop Mac, and more pixels than my old iBook.
+1
Completely agreed I just feel that psychology gives $299 so much more to Apple.
Problem is, if Apple had priced it at $299, people would be complaining it wasn’t $149.
I think people would complain even if Apple gave the iPad mini away.
I’m getting one, my Uncle is getting one (as a present for my Auntie’s 70th birthday) and my brothers are both getting one. It’s a bargain when you consider all the things it can do, and I understand the value of money.
I think it depends where you live. I’m in NYC and everything just costs more so I’ve learned to accept it. You get in a taxi and ride to the airport and it’s almost $30 with tip. Even half-price tickets to a play cost $50. Maybe the people who are complaining live in the midwest or in some boondocks where $30 is their weekly rent or food allowance. I don’t know.
Not complaining in the midwest; I’ll order my Mini on Friday. In May I replaced my 2006 15″ MBP with a 13″ MBP. Now the spousal unit has the 15″ MBP and uses it daily. Premium price indeed; Apple products are made better to last longer.
Well said Steve
Exactly what I commented on an earlier post directly after this mornings presentation after reading the collective moaning about the price.
In fairness to Amazon, their 7-inch Kindle HD has more pixels than the larger 7.9-inch iPad Mini. But, I think Mini’s aspect ratio is better for productive uses.
not saying the Kindle HD’s screen is worse but until experts can do a side by side comparison I’ll reserve judgement…
all screen pixels (like camera megapixels) is not equal…
What?
They are nearly the same pixel count (1024X768 vs 1024X800) and the apple screen is larger, brighter, sharper more saturated (wider gamut) and higher contrast.
In what alternate reality do you live?
The kindle fire is for people who want things cheap and are willing to sacrifice quality and usability to that end.
The iPad is for those who want the ultimate in performance and usability and are willing to give a little on price.
You decide which fits your personal definition of value, but don’t even try to play off the kindle’s (second rate) screen as better.
Actually the Kindle Fire HD is 1280×800.
its ignorant morons like you that i cannot stand and actually get a rush thinking and knowing that you have something over them by whaqt youve merely have no clue of just what your told or seen …NEWS FLASH sheep ,who i am and wha i do is of no concern ,but kee[ in mind that i am a designer in the feild and am currently ceo of top leading engerneeirng co. for apple adn amazon and others and they are the same in fact the kindle has a better aspect ratio and saturated freeware inside…i should know i helped design it …anyway the ios for the pads of apple are just built to be and look more sharper apple didnot want to install a better more expensive tech in it …..
You must hire someone else to speak English for you.
The Kindle only has a better aspect ratio for video, for everything else it is either too tall or too narrow.
i know a 9 year old kid who’s parents don’t work and live on food stamps and every kind of government handout and he has an iphone.
is he premium?
The kid is a crack mule.
Nope… he’s a Democrat.
A nine year old Democrat? Puhleeze!
Smart kid.
A kid that can over come obstacles placed in his path.
hahahahaha
My friend has a job that takes him into low income houses. He’s often amazed that families on Public Assistance have a lot of expensive tech stuff in them. Huge TV’s, they all have cell phones, nice cars, etc. Why work and spoil it all?
ditto…..Couldn’t have said it better myself!!
Didn’t realize how crappy the Android phone apps were.
if apple prices it at some crazy margin crushing profit destroying price and there are XXXX millions of orders for Christmas while the poor dudes in the factories can only churn out X million and Christmas gifts arrive in March…
all the pundits will be calling for Tim Cooks head, ‘the end of Apple’, “what the fuk happened to the Supply Chain?’, and the investor punks like Kass will say “I told you Tim Cook’s trash and margins will erode with terrific Android competiton. Short aapl.. ” and all of them will call it “Christmas Gate” or somesuch…
and aapl PE will drop to Zero while amazon will climb from 300 to 650 …
🙂
Note: Verizon says iPhone 5 in channel inventory is zero (other phone makers jam up warehouses with so called ‘sold’ phones ) …
I bet apple figures it will sell every iPad mini it can make, when production catches up it can lower prices…
Very blunt but very true.
Schools will buy them by the pallet. Families will buy them in six packs this Christmas.
A six pack for Christmas, mmmm, beer.
Couldn’t have said it better. This is what I tell people and I still get the deer in the headlights look, and the inevitable “but it costs too much” comment. Oh we’ll, you can lead a horse to water…but
Great points… I laugh at the analysts who were expecting Apple to go “low end” at $199 with a cheapo plastic-shelled product.
I actually thought it would be priced at $399, and the iPad 2 would be discontinued. Instead, iPad mini is a 20% scaled-down (same screen resolution), HALF the weight, “re-release” of the iPad 2, at a $70 DISCOUNT.
The Retina Display iPad and iPad 2 were killing anything from Amazon and Google, starting at $399 and up. Guess what…? Apple is going to sell every iPad mini it can make, at the full $329 (and up) price tag. Guaranteed. Where is the negative…? They think it’s better for Apple to sell the same number of $199 tablets that make no profit, with Apple selling ad space on the iPad’s screen to eek out some extra revenue… morons.
These are probably the same analysts who urged Apple to release a cheap small-screen low-performance low-end MacBook to compete with “netbooks.” Instead, Apple release iPad for $499 (Apple’s answer to netbooks) to create a NEW market and DESTROY the netbook market.
The analysts are scum, pure and simple. Some of them don’t have mirrors in their motel rooms; they resent what they became. Having sold their souls, they persist in their prostitution clutching a desperate belief that sooner or later, their Nostradamus-like predictions must come true due to their poorly-understood “law of averages” or “regression to the mean”. To them, Apple’s products appear as pet rocks or cabbage patch dolls; they don’t ever seem to comprehend that marketing involves more than customer manipulation and voodoo, and they continue to assume that buyers are dolts. They retain their jobs for one reason only: they are convenient and reliable pawns of the stock traders, who appreciate their services in goosing stock prices so they can enrich themselves through trading while the world burns.
These same geniuses will cut their noses to spite their faces by selling Apple before Dec 31st. So that they can still enjoy the current 15% cap gain tax before it goes up when Obama wins a second term. Real smart business savy there…👀, rather sell short than pay extra taxes on bigger profits.
Maybe when there are less ways to manipulate taxes and the high rolling manipulators won’t get the free rides they now do, the churners will churn less and Apple gaming will hurt them more…
PS: Apple will sell every one of these iPad minis thatvthey can make, indeed and with a stellar premium product lineup, like never before, Apple will have the best holiday quarter ever once again to the shegrin of wall st gamers.
A tektonic blowout of epic proportions is coming to the tech industry- Apple will dominate, decimate and continue to grow it’s eternally loyal customer base.
@ken1w, bang-on thinking.
Like the iPhone Nano?
I’m very furious that Rolls Royce doesn’t sell a Rolls Royce Phantom at the price of a Yugo or Saturn :/
Just realized why Apple didn’t up the specs… they don’t want to compete directly with the iPad. Not sure how I feel this goes with Apple’s normal willingness to cannibalize itself. But then again, it does fall in line with Apple’s mobile products instead of their computers.
You AAPL stockholders can shove it. If you weren’t financially involved, you might have a totally different view on pricing. Who else would support prices that are off the charts for similar products. Take a look at the current survey on this Forum about whether or not the Micro is overpriced. Over 1/3 say it is. So, MDN, cut the demeaning comments about Apple not running a charity. Generally speaking, a fool and his money are soon parted.
Actually it’s over 51% not one third that think that the iPad mini is overpriced. Or as you call it the micro! I am an Apple shareholder. My investing has nothing to do with my opinion of whether or not the iPad mini is priced to my satisfaction. I did not say price for Apple to make money because I do not know the build cost of the iPad mini. I don’t like the $329 price. I’d rather have seen $299. Or even $249 would’ve been killer. But I don’t run Apple and I don’t know how much it cost to produce it. Apple has to keep up its margins. A decision was made to make a superior tablet and I guess with that decision comes a higher price. And customers willing to spend more money once Apple gets them into the ecosystem. I’m just sorry that they won’t be able to crush all the cheaper tablets from Google and Amazon and others. That would’ve been fun.
The last time Apple tried to play that game, with junky Performas sold at Sears next to the ratchet wrenches and tire repair kits, they took it in the shorts.
No more of that.
The day Apple plays lowball is the day Mercedes-Benz, Cartier, and Givenchy sell crap out of Walmart.
Yeah, that’s probably true. But I’m not sure how well the many will go over at this price? We should know at the end of this quarter (first quarter). I have skin in the game so let’s hope they do well.
I still have my old Performa in the basement, along side my Iici.
LOL! It always cracks me up to read these Apple-bashing comments from the Fragmandroid apologists….
Question: WHY DO YOU CARE?
They are the biggest losers in the world. Here, they can pretend otherwise.
“Similar Products.” Not even close, obviously you don’t own anything made from Apple as you would know they are not similar by any means. Get out of here Fandroid!
Anthony, you caught me. I don’t own anything from Apple. Except this Macbook Pro…and my 2 iMacs…and my 2 Macboooks (bought for my two college kids) and my 2 ATVs…and my 4 iPhones (family)..and my Time Capsule and 2 Airport Extremes (large house and property…need the coverage) and one extra Time Capsule for one of my kids at college. I sold my iPad 2 because I was not using it enough to justify it. Will not go back. Was hoping for a better price on the iPM to justify my infrequent use. Would prefer to have the iPM. But, not going to shell out the money for something I will not use enough to justify it. Just because I HAVE the money does not mean I will part with it so easily. I am Apple’s market. They just did not win me over this time.
I think part of the angst I have about the issue of pricing is the rude behavior shown by MDN and most of the contributors on this forum. Just because someone does not believe a price point is justified does not mean they are poor or can’t afford the product. I can’t and will not hold Apple responsible for a segment of their market that are pretentious boobs like MDN and some of members of this forum.
If you let your feelings about Apple’s pricing policies be influenced by comments on a blog, you have much bigger issues than you think.
$1000 bucks invested one year ago is 1600 now.
keep the 1000 and you’ve got 600 to buy apple stuff.
put in 10000 and it’s 16000… etc.
“You AAPL stockholders can shove it.”
lol.
A fool and his money buy Android. And we all know how that story ends up.
If you spend too much on something, you regret it once.
If you spend too little, you regret it every day.
Gee, don’t buy it if you can’t afford it. Apple isn’t trying to insure that everyone can buy it no matter how poor they are. That is left for HTC and Samsung.
BMW doesn’t have to make cars for the poor do they?
They make a damn nice small, turbocharged SUV for less than $35,000.
So true. The poor get what they can and the rich get what they deserve. Gives me a warm fuzzy just thinking about it…
The rich could drive Yogo’s but they don’t. The Ford Fiesta is still an OK car but it is not for me.
Actually, most rich people drive inexpensive cars and hold onto their money. See the article below.
http://www.marketriders.com/investing/which-cars-do-rich-people-drive-cheap-ones/
But, I am an Apple customer and prefer to wrap myself in the warm feeling that I am better than the rest. I wish the iPad Mini price point started at $600 (not even $499) so I could be in an even more exclusive crowd. Mac is not for the rest of us…unless the rest of us are trying to pretend to be rich. Which I am…
apple also said they’ve already sold 3 million of the new iPod touches ,
naysayers think they won’t sell bonks of 329 iPad Minis?
Really good point. $299 iPod touches are selling. Last year parents were buying an iPad to share between 2 kids; this year they’ll be buying 2 iPad minis.
These days $330 is not that much money. Especially when it’s buying a very capable, very sexy computer.
when you are using something for hours on end a few bucks more for way better quality is worth it.
the additional high end apps (most of which are not expensive compared to desktop apps) is another pro.
additional to the great ( No.1) ecosystem is apple support and the mass of 3rd party stuff from speakers to instructional books to pens for artists, buying it vs the competition is a no brainer…
I think the medical field will snatch the iPmini as fast as they can. Finally a great affordable handheld computer that fits into the pocket of the lab coats Dr. like to wear. While the iPhone or iPod Touch could work the screens are to small.
The hospitals/Dr. offices I have been to recently are going to thin clients anyway. The iPmini is the perfect thin client
Next year add NFC that can ‘talk’ to all the diagnostic hardware.
well…well, you just wait, every damn one of you!
THE MICROSHAFT SURFACE IS COMING!
(with a clickstand)
Yes, and people will be dancing in the streets exactly as they did in that amazing Surface television commercial. Hallelujah! Microsoft is fun again! “Click this, boyfriend!”
heh.
Sorry, have to call BS on this. The 7-8 inch tablet market is designed specifically for lower income families and individuals who can’t afford a full priced tablet at $499 or above. Apple entering that market is a sign it wants to get a foothold in the market. Plain fact is Apple missed it today by overpricing what is essentially a slightly smaller iPad 2. There is no premium customers part to this equation as the entire market is lower income customers. But when Apple lowers the price in 6 months MDN will claim that is glorious as well without pointing out the hypocrisy.
Apple is rich. They don’t need loss leaders, and they don’t need to cover the price spectrum. Ford tried to do that by inserting the Edsel into a price gap, a spectacular failure. Apple is not like other companies. Apple practices directed evolution, like race horse breeding. Think Secretariat. They don’t require a lot of finishes. They won’t run him in every race, but they’ll take the triple crown.
j1,
Some smaller tablets may be strictly doing a price banding play, but Apple is segmenting the product line to taste… and offering a price ladder at the same time.
I could go buy either and I would seriously consider an iPad mini. It could be better for trips — just easier to tote around, grab to check email on the couch.
Not sure I’ll choose this over the regular size, which I already have, but it’s very interesting. And the resolution was genius — developers don’t have to do anything. I don’t think people realize how compelling that is.
Wow, Stevejack, could you get any more arrogant or elitist? Did you ever hear the phrase, “the computer for the rest of us”? It was not “the computer for the rich of us”.
I haven’t heard a lot of people saying the iPad mini isn’t worth $329. I’m sure it’s worth that much. But is that extra $30 worth the bad press about this? If it had come in at $299, 7″ Android tablets would die a quick and painful death. But when Phil said “$329″ today, you could have heard a pin drop in that auditorium. EVERYONE knew it was too high. Not because it wasn’t worth $329, but because it gave life to Android 7” tablets instead of crushing them out of existence.
What happened to thermonuclear war? I can sure see Apple coming out with the iPad mini 2 next year and dropping the price on this one by $50 or $100, and then death MIGHT come to the undeserving pretenders in plastic, but a year may be too long.
“the undeserving pretenders in plastic” are already dead…deader than mummy nuts.
love your phrase, however.
Holy crap what a bunch of bellyaching over 30 bucks. The 200 dollar tablets you guys are comparing the mini to are sh*t. This product is better that the iPad 2 in specs (better camera, video recording and networking) ok smaller screen but probably sharper and 70 buck cheaper. Stop the noise. The pundits in the forum at Gizmodo see it as better value as the readers here.