“Deutsche Bank’s Chris Whitmore in a note to clients issued Monday… [wrote that] as the tablet market grows from about 20 million in 2010 to roughly 195 million in 2014, Whitmore believes Apple is aiming squarely at an underserved price point between $250 and $350,” Philip Elmer-DeWitt reports for Fortune.
P.E.D. reports, “‘If Apple is able to price the iPad mini at ~$250, the product will be a barnburner; especially during this holiday season,’ he writes. ‘Apple is uniquely positioned (brand, ecosystem, developer support, etc) to capitalize on the next wave of tablet adoption and capture the lion’s share of industry profits. We believe the iPad mini will enable Apple to extend it competitive lead as Android remains fragmented, MSFT RT is not compatible with Windows 8 and PC OEMs haven’t put forth an iPad killer.'”
Read more in the full article here.
Related articles:
Analysts expect Apple to price ‘iPad mini’ at the top of its class: $299-$349 – October 22, 2012
Why Apple should price’ iPad mini’ at $199 – October 16, 2012
No chance it will be near $249. Even $299 may be too low.
$299 and 349 is way more likely than 249. We’ve heard this kind of wishful thinking before.
Yeah, that would be crazy pricing… I mean, everyone said the iPad would start at 999$, and it did!….right?
249 Euros would be a great price, but I doubt it.
Dunno? Damned if they do damned if they don’t. If they don’t price it low enough will it be competitive with the other smaller tablets out there? If the price is low will that hurt margins bad enough that the street will react negatively and the stock will drop even further? Tough call for Apple but I believe that they have done enough research to make a good decision for the long-term. In the near term, that could be a different story however. But I am confident of one thing, they’ll sell like hotcakes!
I agree that $249 would be a barnburner price. I would like to see Apple do that and really grab the 7 inch market, even if it means lower than usual margins. Once people enter the iOS ecosytem and like it they will buy other devices.Apple is uniquely positioned to do this because of the variety of products and services it offers and it’s purchasing power and management. If Apple makes it inexpensive
enough to attract schools and students and fencesitters it continues to broaden it’s users and future earning possibilities.
2000
If the cost of the components is about $200 as one estimate I read then the ‘barnburner’ would be a stock burner too. With margins at 25%, it would be far below anything Apple has put on the market and would be an Amazon type disaster.
What everyone said. At $299-349 it’ll still be a barnburner.
I could see the keynote having that gasping moment when they flash the price.
I think the price of the iPad mini is largely irrelevant for the first six months or so because Apple is going to sell all that they can make. An extra $50 per device, say, sell 10 million in the initial run, that’s a tasty extra 1/2 billion profit. In a year’s time when production is fully ramped and with a new model released Apple’ll have a price point to drop to if required.
Excellent point.
If Apple at least can offer educational, OEM, institutional and volume pricing to hit close to the $249 price point they will own those segments. Education I’d especially important.
I can imagine a scenario where a 16GB is $299, but they add a 8GB for $249.