Apple’s iPad mini will compete on price NEXT year

“Yesterday Apple released the iPad mini. It’s a 7.9″ screen – the same dimensions as the current iPad, but smaller,” James Furlo writes for Outside the Rat Race.

“However, the biggest complaint by observers has been that Apple messed up on price by making it too expensive and missed an opportunity to kill the competition,” Furlo writes. “Apple came out with the iPad mini at $329 for two reasons: They can cater to people who want a premium device in a handheld size [and] they gave themselves room to drop the price on existing models when new ones come out to cater for those looking for a cheap tablet.'”

Read more in the full article here.

Related article:
Newsflash: Apple sells premium products at premium prices to premium customers – October 23, 2012

36 Comments

  1. On the other hand, let’s face it. Apple has always been a premium product. People buy Apple because it’s the only hardware where they can get specifically the Apple OS (be it Mac OS or iOS) and that’s worth something to them. MacBooks are always more expensive than comparable laptops, but those run Windows. And you know full well that you don’t want Windows. Same thing – you want iOS, not Droid.

    Now, will it be competitive on price next year? Yeah, probably. Will some people wait until then to get one? Yeah, probably. Would we have liked it to be lower priced now? Of course, who wouldn’t?

    1. Don’t forget, apples stuff is usually made with high quality materials, not plastic that is alot cheaper and flimsy that the competition like SamDung, uses, so if apple made them out of cheap plastic they would be a heck of alot cheaper.

  2. Yes, iPad mini will compete on price next year–and still make 30 – 40% margins.

    This year it will simply choke the life out of the competition with the mammoth brute force of the gargantuan iOS ecosystem.

    1. Eventhough a very common price on the street was $249. I personally do not need or want the $80 difference. I am wealthy. Not particularly good looking, tall or well endowed. But, Apple products and my BMW more than make up for it. So, I do not want to pay less. I want to pay even MORE. So much more that the poor people cannot afford to even touch one or worse…breath on one. They should not be allowed to enter the holy walls of my nearest Apple store. KEEP THEM AWAY!! Let them eat cake!!

      1. I too am wealthy. However, I am tall, very good-looking and extremely well endowed. Just saying. However I am discerning with my wealth. While I could drive any automobile out there I choose to drive a six series BMW. Very fast, very nice. I don’t want to pay more but I can. In my neighborhood even our poor people are rich. But I would never associate with them. And I have my own Apple store. Let them eat White Castles!

    2. That’s equal to $300 Million per quarter on pre tax profit that would be foregone, given that I expect Apple to sell all they can make (about 10 MM per quarter to start.)

  3. No it won’t. Apple effectively locked tablet competitors in “no margin” or at best “low margin” territory. Anybody who would like to earn any profit from smaller tablet form will get dangerously close to iPad mini. Which means only one thing for that competitor: no sales. Apple will easily sell tens of millions of iPad mini at current prices with healthy profits, and let Google and Amazon and co. eat each other in no margin 199 $ tablet fight

  4. Apple is ALREADY competing on price. If anyone else made a tablet that matched the build quality alone, it would be 1.5-3 times more expensive than any Apple Pad.

    After that figure in the value added by a decent OS plus apps and accessories to support the device, Apple is the clear winner.

    1. @darknite

      I wish I had the knowledge of one so intelligent as you. To know what the actual component costs are at Apple’s level is truly a power to behold. My hat is off to you and all like you who strengthen Apple’s pricing position. May they read your strong message and reward you with even higher prices on future products. My personal blessings to you.

  5. I’ve been happy to pay extra for Apple’s premium products for years now. So far I’ve not been disappointed (which I cannot say for the opposition – have tried them many times before but have always returned to what I consider to be the best products in the market). Combine that with their ease of use, seamless sychronisation & the fact they just do it & I’ll continue with them. I think likewise those who have in the past lusted for an Apple tablet but settled for the inferior competition on cost grounds will pay the minimal extra required for iPad mini. I have lost count of friends who have told me they’d never ever pay the “obscene” amount for an iPhone only to find they’d sneakily got one without telling me for fear of the backlash !!!

    1. @Kestrel1960

      If you are a girl and were not born in 1960, then you may be my type. Any girl that uses words like “do it”, “lusted”, “obscene”, “sneakily” and “backlash” has my undivided attention. I am not poor like non-apple users are and I own every type of Apple you can name.

  6. Shold have a drop test which will tell the writer which one is cheap and which one is expensive!!!

    Apple will not make $200 cheap junk which will fall apart in drop test. So if we look at because of quality “Apple’s” products are cheap compare to other company’s products.

  7. Does Apple need to “kill the competition”? Doesn’t Apple make enough money as it is? Isn’t competition good? Don’t we want Apple to remain profitable and in business rather than go after scraps?

    I think we see what happens when competition among oil companies (and other industries) is “killed”. It becomes a monopoly. We see higher prices and less choice.

    Let’s not “kill” the competition.

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