Does Apple ‘iPad mini’ face price conflict with iPod touch?

“Apple faces a pricing quandary with its expected iPad Mini,” Patrick Seitz writes for Investor’s Business Daily.

“The new tablet needs to be competitive with low-cost alternatives from Amazon.com and Google, yet also fit into the pricing scheme Apple has established for its regular-sized iPads and its iPod Touch handhelds,” Seitz writes.

MacDailyNews Take: An “iPad mini” should cost more than a tiny screen (7.0-inch) Amazon or Google tablet because it’s worth more.

Seitz writes, “Analysts had speculated that the iPad Mini, which is predicted to have a 7.85-inch display, would retail starting at $299 or less. But that was before Apple on Sept. 12 launched its fifth-generation iPod Touch, which sports a 4-inch display, starting at $299.””

“‘The pricing of the iPod Touch may actually give us a hint of where they’re going to price the (iPad) Mini,’ said Sterne Agee analyst Shaw Wu. “‘It’s a low likelihood that they will price the Mini on par with the Touch or even at a discount. You can forget about a discount. So we’re probably looking at a price above $299.’ Wu’s prediction: $349,” Seitz writes. “Apple’s current model tablets, which have 9.7-inch displays, start at $399 with the iPad 2. The company’s newer, third-generation iPad starts at $499.”

Read more in the full article here.

46 Comments

  1. I believe that Apple may price the the iPad mini at $299 (or possibly even $249- although probably doubtful- if they want to make sure they “don’t leave a “pricing umbrella” for competitors”, as Tim Cook stated in a recent Apple conference call), and announce a $50 “price drop” on the 32 Gb iPod touch at the same time. I see that as an aggressive pricing strategy, similar to what they did when introducing the original iPad at $499 base price, and could still provide acceptable profit margins if they place orders for the number of units on the scale of 10 Million plus, like have been rumored recently.

  2. I knew that MDN said like. but you are wrong. it’s not worthy this time because ipad mini isn’t supposed to make. do you know why apple wants to release it? because they want to crash 7 inch tablet market. but it’s not 2007 when iphone was out. amazon, google, asus are very smart. apple won’t keep competition in this market. ipad mini will be the same situation like apple TV. there is no success anymore if apple do something. time is changed. wake up, MDN.

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