Originally Posted by TheOtherGeoff
i disagree using the Cook Credo: Apple will not allow a pricing umbrella in the product line. Crap not withstanding, if Apple builds an 8" device, it will be at the price point of the current market 7" devices. Apple stated up front that 7" was a crappy user experience for the iPad (size battery life, UI). The market is speaking that the form factor is indeed interesting to apple, and they want to continue to have a 'gateway drug' device into the iOS ecosystem. this has to be a great interface. My guess it will be similar to current iPad or the current iPhone, not plastic, again, to differentiate the iPad brand.
I see a ~$50 price premium ($249) over the current competition, but not $100. At this level, $100 is significant.
This should be a 'Zune' killer play. make it impossible for others to make a Board of Directors approvable profit in the 4.1"-7.5" space. Apple will be happy with 'cheap' competitors, but not one that can has a 'quality' of the iPad at a price 25% less than the iPad.
I'm not trying to be picky, but I'm not sure I understand your post... so let me address each of your points:
1. "if Apple builds an 8" device, it will be at the price point of the current market 7" devices.":
What?! If the current 7" devices are between $200-$300, I say it's ridiculous for Apple to produce/sell one at those low prices.
2. "My guess it will be similar to current iPad...":
You just totally confused me. In #1 above, seems like you predict a very low price point, but you also predict it will be at the high level of quality as the existing iPad?! So you're saying that Apple should produce a 7.85" iPad Mini with the same great quality, but at an absrurdly low price point? I don't think so.
3. "This should be a 'Zune' killer play":
I don't even know what you meant by this. But assuming that you mean that the iPad Mini should be at a price point that is too low for others to go...to that, I disagree...in addition, it's not really relevant for the iPad. You see, for the iPod, there was nowhere else to go with it and Apple knew that iPods relevant to its company value was small and getting smaller. The iPad, on the other hand, is a more substantial profit driver and is growing. So while I agree that all companies would love to kill all competition, I don't think that it makes business sense (at this current point in time) to increase market share at the (dramatic) expense of profits. Maybe in 3 years, the iPad Mini may have to be offered at some ultra low price point.
4. "Apple will be happy with 'cheap' competitors, but not one that can has a 'quality' of the iPad at a price 25% less than the iPad.":
I hate to tell you this, but no company on the face of this earth will be able to product an appliance with the SAME quality as the iPad & offer at 25% less cost. If they do, I'll buy 100 of them. :-)