“Will Apple match or undercut the price of the smaller tablets already on the market? Or will it price the so-called iPad Mini as it sees fit, paying little mind to its competitors,” John Paczkowski reports for ALlThingsD.
“Consensus on the Street seems to be the latter, with a number of analysts predicting the entry level Mini — or whatever Apple chooses to call it — pricing out somewhere between $299 and $349,” Paczkowski reports. “Or perhaps somewhere in the middle — $329, as 9to5Mac recently reported. That might seem a bit pricey for a device many view as targeting the Nexus 7 and Kindle Fire HD, but that’s almost certainly not how Apple views it.”
Read more in the full article here.
MacDailyNews Take: Despite wanting to see Apple nuke the nascent market of tiny screen fake iPads, the reality is that Apple will likely preserve margins and still dominate the market, certainly (as with smartphones) in terms of profit share, and be unable to make enough iPad minis to satisfy demand at even $349 for several weeks or months. We expect there would be special education pricing, as well
When Apple introduced the iPad, it was at an astonishing price point that no one can yet truly compete with. This premium pricing argument can only hold so much water.
If the iPad mini costs more than a Kindle or Nexus 7 it had better provide more functionality, performance, and “wow” factor than a Kindle or Nexus 7.
“…it had better provide more functionality, performance, and “wow” factor than a Kindle or Nexus 7.
Such as?
We’ll know soon enough.
Genius. Perhaps companies like Mercedes and Apple can start employing this concept.
Well, it will be an iPad, so it will provide all the benefits the current iPads do over their Android competitors, like a plethora of tablet optimized apps, and simply a much better user experience.
BUT, I do think that if it doesn’t start at $249 at the most, then Apple will not take away much market share from the current segment consumers purchasing the 7″ tablets strictly because they are cheap. Nexus 7 purchasers tend to be Android geek types, so I think it will continue to sell regardless of the iPad Mini’s pricing. Amazon has their devout fans, but I think they could be swayed fairly easily on pricing.
At $329 – $349, I think that Apple will only be selling to the already converted for the most part – people who already own at least one Apple product (and likely not simply an iPod). There’s probably some outliers who have always wanted an iPad but thought the current ones are too large.
I do think that the iPad Mini will still sell, although I personally won’t be purchasing one. I just don’t have a need having a current gen iPad and an iPhone 5.
Like it wouldn’t already have a premium experience attached as an Apple product. Just being a smaller iPad is all that’s necessary. Too many geeks think the next big thing can just be easily pulled out of the air and then of course it’s “obvious” though they haven’t an “obvious” thought in their heads.
The physical build quality is Much Higher.
The software build quality is Much Higher.
The quality of customer support is Much Higher.
Wow.
And evidence that any of this matters to the average consumer over price is…?
Windows PCs outsell Macs. Samsung outsells iPhone even though the up-front prices are close or the same. The 10″ tablet space is a special exception because competitors haven’t figured out how to race to the bottom there and can’t properly undercut Apple yet, so they get away with lower prices on smaller screens instead.
There is a wealth of perfectly clear evidence that those issues matter to the average consumer. In fact, those issues are more important than even some in the industry realize (though some are starting to finally realize it). You want evidence?
– Windows PC market share has been in decline for most of the last 5 years or so, while Apple’s share is increasing. Oh, and Apple is doing this in a down world economy, and while getting margins that are the envy of the industry.
– Every customer satisfaction survey puts Android buyers much less likely to purchase that platform again when they replace their device. Apple hardware owners (as a group) are much happier with their purchases, and tend to stay with the platform.
Now, is there a certain segment of the population that won’t ever pay a premium for a better product? Of course, but Apple doesn’t have to sell to those customers.
Hopefully, the rest of the industry keeps thinking like you, and Apple can continue to leave nothing but table scraps for their competitors.
Android users sampled say that they will never buy another Android product again. Still, the sales keep rolling along. Either there’s a sucker born every minute or a lot of people are lying.
It’s neither, and the answer is simple: The market for smartphones is growing. People are still buying their first new smartphone.
But, while Android attracts lots of new customers with big screens and two-for-one offers, Apple gets their disgruntled customers and keeps making their own repeat customers with a superior experience—an experience so far unmatched by their competitors.
At these prices it sure as hell better have more than 8 gigs.
Especially with the Nexus 7 going to 32 gigs for $249.
If it is only 8, I am out.
Where you ever In??
Yes. How about you?
And when I say “out”, I mean on the mini. I really want the smaller form factor but 8 gigs is worthless. Will be more than happy with my current iPad.
We will see tomorrow what memory sizes are available.
Schools could work with the 8 gigs, but yes, I go with the 32 or 64 gigs on the devices that I buy. 128 would be sweet.
I sure hope this is not true. I was going to buy 5 for Christmas gifts, but if they are that high, I will just have to pass. Sure hope this is wrong, because I would sure love to spread some Apple under my tree.
$299 for base model, with 16GB RAM. That’s my call on it….
Apple cannot afford to blow this by pricing the Mini too high, they need to crush this or the stock price will plummet when it does not completely blow the competition out of the water.
This is the first time the will be entering a market and not creating it. To stumble here will generate so much “apple had lost its mojo” press it will be hard to keep the stock from free falling
I hope they realize this could be their most important new product launch in 5 years… Their reputation is on the line.
All of the supposedly leaked real online price lists that have been posted on the subject have said the entry model will be 8Gb @ $249 WiFi only.
An 8 gig only base model at $250 a pop will be a huge disappointment.
Really hope you are correct.
You are completely clueless and obviously not an Apple investor. Apple does not sell the most phones but they crush everyone except Samsung on profit and only because Samsung illegally rips them off.
They own the 10″ tablet space and similarly own the tablet app markets. They don’t need to “crush” the profitless Nexus 7 or Kindle. Both products are already desperate moves to cling to the very bottom of the market. All Apple needs to do is sell a product that a lot of people buy and Apple makes a profit on. Apple will not have trouble doing this.
The funny thing about “owning” a market–don’t get f-ing cocky and arrogant about it, it can and will eventually bite you in the ass. It happened to IBM, Microsoft, RIM, Nokia, Palm, Yahoo, the American car companies, and many more examples.
This is Apple without Steve Jobs. Steve Jobs could pull off cocky and arrogant. Tim Cook hasn’t proven that he can since he’s demonstrated neither (nor should he start now, else he’d be no better than the other “business leaders” imitating Jobs’s style, all badly and for the wrong reasons).
That’s all true, but nothing about pricing products at a point where you can actually make a profit is “cocky” or “arrogant”; rather, it’s simply good business. By the same token, marketshare is nothing to get cocky or arrogant about, since as you pointed out, those positions are never permanent.
Now, whether investors are bright enough to understand that Apple’s outstanding profits trumps Google’s increasing marketshare remains to be seen.
I do agree with twilightmoon, though. Apple doesn’t have to be as cheap as a Nexus or Kindle—they just have to be reasonably competitive. All “specs” being equal, Apple can command a premium because it’s a better product, and most people know it.
Now, if Apple did come out swinging with aggressive pricing, that would definitely be bad for Google and Amazon, but probably also for Apple’s bottom line.
The entry level model will be $350, with options pushing the price up from there. One year later, the then-new iPad Mini will be priced the same, while the 1st generation will be priced $250 and up.
Apple is in no hurry to dominate market share in the ~7-inch tablet market because they know they will dominate it eventually. Better to garner increased margins from early adopters, not to mention create the reputation for being ‘the’ premium product in this market, then sweep up market share next year with the discounted 1st gen.
This also has the advantage of making all competitors sweat bullets for a year while they think they still have a slim chance. They will blow more of their money and attention on doomed product lines for a year before the discounted iPad Mini hammer drops, crushing competitors’ dreams.
It is simple economics. Apple knows that they will sell every unit they can make even at a $349 price point. Pricing is always matched supply to demand. Amazon and other competitors WISH they could do the same but can’t. If Apple could increase production beyond demand they might lower the price.
It is absolutely amazing to watch cheapskates come here and pontificate on things they clearly, absolutely know nothing about.
Like say… pricing, profit margins, market share, etc. You know… operating a business in general. How many of you are operating a successful business, of any kind, at this time?
The internal circumstances and situations that make a business a success (or a failure) are the same regardless of the type of business.