Originally Posted by SolipsismX
But you're looking at as an extra
$30. As you note, maybe it was a drop
of $20 to get to a price point that would sell out and kill off the Android market. Remember, Apple doesn't have to match their competiton 1:1 on price to beat them. They offer things their competition simply can't match and this tablet has plenty of that.
Soli, here's my take. As Dick Applebaum said a few days ago, Apple had a chance to be "disruptive" with the iPad Mini. IMO they missed. There's very little that makes it a stand-out product. It won't be as portable as the smaller 7" competitors, which is what I saw mentioned as a primary hope for the Mini by many forum members. It doesn't sport Apple's now-iconic Retina display, which some others felt was a requirement. Not even the emphasis on the Mini as a education device, which many here thought would be the focus at the base end.
Then there's the price. With the intro at this time of the year it's obvious Apple plans to promo this for the holiday gift giving, which is smart. What's not so smart is they could have taken a minimal risk and come in much closer to competitors pricing and really push Mom and Dad to opt Apple rather than "other". And don't try to say Apple doesn't consider something like the Nexus7 as a competitor when Shiller trots them out on stage to compare.
Assume I want to buy a smaller tablet for each of three grandkids. Here in Florida that would set me back about $1056 with tax for the least expensive base model 16GB Wi-Fi Mini. Opting instead for the base Nexus (reportedly a 16GB rather than 8 by the end of the month) would be $639, saving grandpa over $400. Even going for the already shipping 32GB Nexus, doubling Apple's base, I'd still save over $250.
With the pricing and features Apple settled on they've allowed a huge opening for competitors holiday sales, something they apparently decided was less important than holding their traditional margins. Apple no doubt made the best choice for their bottom line, but they had an opportunity to leave the door open only a crack for the competition instead of opening the window too.