Apple's Phil Schiller Defends iPad mini's $329 Starting Price
October 24, 2012 1:30 PM
comment(s) - last by
Don't hate the playa, hate the game
Reaction to the
introduction of the iPad mini yesterday
was decidedly mixed. On the one hand, many Apple faithful praised the launch of the new tablet, which is half the weight of the third and fourth generation iPads, and can be palmed with one hand. On the other hand, many complained that it was simply a shrunken down iPad 2 with the same lackluster screen resolution. It also didn't help that many people felt that the 16GB iPad mini was overpriced at $329.
Amazon's 7" Kindle Fire HD
is priced at "only" $199, while a
32GB Google Nexus 7 will cost you $249
. Even Barnes and Noble is hanging around in the budget realm with the
7" Nook HD
, which is priced at $229. All of the aforementioned tablets have a higher screen resolution than the iPad mini.
With all the criticism of the iPad mini's pricing and specs, Apple' Phil Schiller has come to the rescue to defend Apple's newest tablet entry.
"The iPad is far and away the most successful product in its category. The most affordable product we've made so far was $399 and people were choosing that over those devices," said Schiller in an interview with
"And now you can get a device that's even more affordable at $329 in this great new form, and I think a lot of customers are going to be very excited about that.”
Schiller believes that the $130 price premium over some competing tablets is worth it, and that the iPad mini will sell on its merits alone, not needing to compete on price. Apple points to the fact that the iPad mini is lighter, thinner, and has better built quality than the plastic-clad competition. And of course, Apple also points to 275,000 tablet-specific apps for the iPad platform versus a plethora of "stretched phone apps" for Android devices.
So, will customers buy into Apple's strategy?
This article is over a month old, voting and posting comments is disabled
RE: No reasonable justification
10/24/2012 4:53:56 PM
iPad Mini has 0.9" larger screen, much thinner (0.28 vs 0.41), lighter (10.9oz vs 12oz, actually has rear facing camera and 5mp at that. Plus the whole plastic vs milled aluminum debate.
There are arguments on both fronts but I don't think too many people are looking at spec sheets when buying a tablet.
1024x768 vs 1280x800 isn't much of an advantage for the Nexus but it is there.
RE: No reasonable justification
10/26/2012 1:48:57 AM
One more point in the comparison. The fact that the back camera on the Mini is way better than the competition will make the sale for a segment of customers out there. eg Instagram users like kids would prefer a better camera at the expense of lesser screen resolution. This fact while not a criterion for US based users, maybe key selling points in other countries. One can safely say that below 18 year old kids would prefer this tablet compared to an Android one. It will end up being the majority of mini users over time.
Note on the $329 pricing. Users are saying just one out of 6 models priced at $299 or a bit less is going to make a huge difference and hardly make a dent in the overall profit since margins for the other 5 models are way big anyway. LTE models bundled with carriers make obscene levels of margins over the life of the contract!.
"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton
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