iPad Mini

7 July 2012

Macotakara (translated):

This tablet seems to have 3G model, but not all current carrier might sale, somea career name are not seen in list of resellers.

This source, who seems to look a prototype, told that new tablet (iPad mini?) had same hight with Nexus 7 and slight larger width. Even though front projection size is larger than rivals, thickness of that new tablet is considered to be thinner than current most thinnest tablet Kindle Fire, and to be similar with iPod touch (4th generation) by this source.

The momentum behind these rumours is so high right now, it has become an near-inevitability, especially as the rumour has been backed up by the Wall Street Journal and Bloomberg.

Pricing for the device is assumed to be $199, to compete directly with the Fire and the Nexus 7. However, this introduces a complication in Apple’s product lineup: the iPod touch. The iPod touch is, also, $199. Clearly, Apple can’t have both of these products at the same price. How much cheaper can they price the iPod touch? Even at $159, a 3.5inch iPod touch seems really expensive standing next to a 7.8inch iPad mini.

Reaching the sub-$150’s, though, you hit another price wall. The iPod nano sells for $129. Assumedly, they’d have to make the Nano cheaper as well.

$70 is the difference between an iPod nano and an iPod touch. On that basis, I’d expect a similar gap between the Touch and the iPad Mini. So how about a $199 Mini and a $149 iPod? The Nano then can go to $109. I suppose that’s a possibility.

But, just looking back at that paragraph, it doesn’t feel right to me. In fact, it makes me believe even more strongly that the Mini is not going to be $199. I think $249 makes much more sense. The $200-$300 price range is a market segment where the iOS ecosystem is currently absent; a $249 iPad Mini would be a great fit. Also, I think $249 is still cheap enough to suck the air out of the 7inch tablet competition. In the long run, the Mini could fall to $199, if necessary.

At launch though, I think $199 is overly price-aggressive and has too many implications on the rest of Apple’s lineup, to be feasible.