Why The iPad mini Is Perfectly Priced (Opinion)

Why The iPad mini Is Perfectly Priced (Opinion)

Yesterday, Apple announced the smaller, 7.9 inch, iPad mini. Prices were thrown a lot around beforehand: $199, $249, $329. Which one was it going to be? It turns out its the latter.

There were mixed reactions: right price, wrong price, Apple are idiots, the usual. I went through that thought process albeit the other way around in the space of a few hours. Let me take you through it.

Apple Are Idiots

Pricing a seven inch tablet for almost twice as much as rivals!? What were they thinking? This has got to be one of worst decisions ever made. How it is remotely competitive with the Nexus 7 and the Kindle Fire HD? Loads of people will refuse to buy it and settle for the much cheaper and similarly featured Nexus 7 or Kindle Fire HD. What’s more, it should have Retina.

Wrong Decision

It won’t be a disaster for Apple, but it could have priced it much better. It will still sell, but it won’t be the product that it would have been at a cheaper price, and you still can’t really put it in the same bracket as the Nexus 7 or Kindle Fire HD. Again, it should really feature a Retina display for that price, but some people won’t really care.

Right Decision

Hold on a second. People are going to buy these things anyway. Apple sold 5 million iPhones in the first weekend. Every new product Apple releases seems to break sales records. And Apple is a business. It wants to make money. But two and two together: it can get away with selling for a high price.

The number of people who will buy one will be ridiculous, whether it’s $200 or $400. So why make less money? It might sell less by increasing the price, but it’s all relative: just instead of there being a massive iPad mini shortage at launch, there will be a slightly smaller one. It doesn’t make any difference on paper to sales.

It will still sell more than the Nexus 7 and the Kindle Fire HD, who cares whether on paper the price isn’t competitive. Apple could sell a pile of dog crap at the moment.

Conclusion

The pricing definitely sucks for those of us who set our budget at under $300 for one, but the fact is loads of people didn’t and those people (of which there are millions) will still buy one. So what we think is irrelevant. The pricing just means different people will buy the iPad mini. Apple won’t care, it will just make more money in the process. It’s a win win.

  1. Dr says:

    Apple is coming out with products too fast…..they do not have or create the same IMPACT as when Jobs was around…..iPhone 5 = CRAP…!! iPad Mini = ????

  2. My household has a couple of iPhones and iPads, so what I say in the conclusion doesn’t apply to every Apple user, but certainly quite a large section of them. “Pricing a seven inch tablet for almost twice as much as rivals!” “it should really feature a Retina display for that price, but some people won’t really care.” “People are going to buy these things anyway. Apple sold 5 million iPhones in the first weekend. Every new product Apple releases seems to break sales records.” ” Apple could sell a pile of dog crap at the moment.” “It’s a win win.’ For Apple the business.

    Conclusion: It’s not that Apple Are Idiots. It’s the Vast majority of Apple users are Idiots.

    For me, it’s time to check out the Kindle Fire HD

    1. Eytan Bernet says:

      Yes, it is $115 more than a similar sized Kindle Fire HD (the ad-free version of the 16 GB KFHD). For that you get a product with better WiFi, better Bluetooth, less weight, and thinner, and a rear facing camera. It has the same screen density as the iPhone 3gs. I see it as well worth the price delta.

  3. stefn says:

    Love commenters who know more than Apple does about its business. Obviously they are used to Amazon, Google, and Microsoft, none of whom know how to make dollar number 1 off of hardware in this arena. Please, they could really use the advice.

  4. MRonin says:

    Here’s the thing. Yes it’s 29 bucks over the price I was expecting, however it’s a far nicer product than I was honestly expecting so I’m willing to concede the overage. What this is, is an excellent tablet all around for the price and it does provide a solid entry point now and in the future for folks wanting to get into an iPad and here is why. People bitch that it’s not got a retina display, true THIS initial model doesn’t which is fine because they can create a buzz and market need for the iPad mini without an over large cash outlay. Let that buzz and market need stew for a while then next year voila a new iPad mini WITH retina display, drop the price on the gen 1 iPad mini to a 250-275 starting price and that’s it. The hook is set on the tablet market and the e-book market.

    The only wrinkle in this is possibly the MS surface, but I say possible because it’s still an unproven commodity and once in a great while MS hits on a marketable device so I can’t discount it yet.

    However assuming the tablet market stays roughly the way it is now even with the introduction of the surface. Then Apple will still be sitting in the tablet/e-book drivers seat for a while. Combine that with bulk pricing on the iPad mini on top of education discounts and that’s iPads in huge number of schools at every level. In the end there were some surprises with the mini and I get some of the complaints, but I also understand the potential strategy behind what Apple MAY be doing.

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