Yesterday Apple released the iPad Mini. It's a 7.9" screen - the same
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. Here's a quick table of the prices for the Nexus 7, Kindle Fire HD, and iPad Mini. Yes, I know there are tons of different flavors, but all of them cost more and this is what people are really comparing.
|Kindle Fire HD||$199||$249|
Apple's prices aren't even in the same hemisphere in terms of percentages. Relative to household income they're closer, but these tablets are targeting the cost conscious shopper. So, Apple made a tablet to compete in the low end, but it looks like it's prices are way too high to effectively compete.
But here's the deal, it's made to compete on price NEXT YEAR.
That's right Google and Amazon, you're on notice that you have one year to improve the experience on your tablets.
If you've been paying attention, when Apple releases a new iDevice they don't just discontinue the previous version. They keep the lowest storage device and drop the price by $100.
Look at the table again and imagine this iPad mini at 16gb for $229. All of the sudden it's competitive on price!
Prediction: Next year iPad Mini v1 will be $229 with the intro of v2. JF
— Furlo Bros (@FurloBros) October 24, 2012
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
- 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.
The gamble Apple is taking is that Amazon and Google won't be able to improve their devices/ecosystems enough to better compete in a year. It's not a sure bet, but I tend to agree with Apple's assessment of the tablet field.