Apple People will pay 329 for iPad mini because its an iPad

first_imgChoosing a tablet in the 7-inch category is now mainly a choice between a $200 Kindle Fire HD, a $200 Nook HD, a $200 Nexus 7… or a $329 iPad mini. To the budget-conscious consumer who is most likely to buy a 7-inch tablet, the first step in the process of elimination seems pretty obvious. Not to Apple’s marketing team, though.Apple senior VP of marketing Phil Schiller expects throngs of consumers will shill out an extra $129, 65% premium over the standard small-size tablet price because, well, it’s an iPad. Sure, that money gets you an an aluminum case and more internal storage, but some would say those gains are counterbalanced by a lower resolution display, the use of an older SoC, and the possibility of limited availability (at least initially).In an interview with Reuters, Schiller expressed the company’s logic that because people flocked to buy the lowest-end iPad at $399, they will absolutely gravitate to an iPad priced at $329.Of course, this argument is subject to criticism. It would be a great argument if the $329 iPad was very similar to the $399 iPad, but in reality you’re paying 18% less money for 30% less tablet. In addition, in the 7-inch tablet market, Apple comes in as a competitor, not an innovator. The Kindle Fire and Nexus brands have done a nice job of dominating this space. Apple’s logic appears to be very blunt in that it expects people to pay more just because it’s an iPad and it has a lot of apps. It clearly does not see any existing tablet as a true rival.That noted there is little doubt that the new iPad mini will sell out in no time. For the holiday season, it wouldn’t be surprising to see it outsell the more established 7-inch tablets.An argument like “people will pay more just because it’s an iPad” might sound a bit arrogant, but sometimes within arrogance there is truth. The fact that the big stories about the iPad mini reveal are about how no one expected it would be this expensive, is an issue. But will it actually hurt sales? That remains to be seen.via Reuterslast_img

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