Apple exec Phil Schiller defends $329 entry price of iPad mini

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  • Reply 161 of 241
    sflocalsflocal Posts: 6,122member

    Quote:

    Originally Posted by Andysol View Post


    You aren't just presumptuous- your pompous.  A premium product the "poor souls" can't afford?  It's $329- that's nothing if someone wants it.  $299 isn't "floor-scraping arena".  To claim that it's $329 and they couldn't do $299 just because of the quality and cost of parts is idiotic... now who's sipping the Koolaid?





    My "poor-souls" remark was not to insult.  I'm referring to honest, hardworking people that have to live on a tight-budget, watch every dollar they spend because they have a family to support, maybe not getting ahead or be where they would like, etc.  My parents and us kids back then grew up that way.  I work hard for my money, as does everyone else I know.  I'm not a rich guy by far and I definitely sympathize with people that can't afford life's simple pleasures and enjoy life like that would like to.  We all want that for everyone.



    That being said, there's folks like me - a hardworking middle-class individual - that think if one cannot afford a given product you either determine if that product is worth the extra cost and value and save up for it, you buy a cheaper alternative that may or may not serve all your needs (which is OK), or you don't buy it.  Period.



    What people are doing here besides the trolling and iHating is literally loud whining which is just childish.  My parents back in the day were more worried about feeding family and affording school for the kids and saving for the future.  They literally saved for months so they could afford to buy me the first computer which ultimately led me to the career in software developing that I'm in to this day.  Not once did they go around saying "This $1,200 computer (back in the 1980's) should be $600!!  Let's raise a stink!".



    No, they paid the price because they saw value.



    I see the value that justifies why Apple is charging the $329.  I see where the extra money is going.  I see the false-promises that the other makers do to compete with Apple and I'm saying that Apple is right to not go that route.  Sure, Apple would sell a boatload more iPads if they priced it the same as the Android junk that's out there but as an AAPL shareholder, I don't want Apple to literally lose money on everything they sell in the "hope" they make it up later, which they won't.  They just won't. 



    What will happen is that the race will drag Apple down that same road that Android devices are in.  So what then?  Apple prices everyone else out and they decide they have to actually make money again and raise prices??? Will you defend Apple then for that??  I bet you will skewer Apple for that and will accuse Apple of price-gouging or monopolistic practices.



    So spare me your so-called insight.  You really have no idea.  You won't have me responding to any more of yours and others rants on this thread.  It's just downright sad the mentality you guys have.

  • Reply 162 of 241

    Quote:

    Originally Posted by Quadra 610 View Post


     


    You're actually comparing the iPad Mini to THAT junk?


     


    They're not even in the same league, User Experience-wise. And User Experience is everything. 


     


    The Nexus7 and Kindle Fire HD are FINISHED. The moment Apple unveiled the Mini, was the beginning of the end for the tablet competition, who are having a helluva time against Apple as it is. 





    I'm holding a Nexus 7 right now, and it's got an amazing finish, and a rather smooth UX...

    I do agree though that the Mini is a strong contender, but looking at pixel count, Nexus 7 has a better screen.

  • Reply 163 of 241
    igrivigriv Posts: 1,177member

    Quote:

    Originally Posted by juandl View Post



    In the long run, Google and Amazon still have a leg up on Apple due to the fact that they can almost give away their tablet and still make some money in the long run.

    That will always be the case until Apple does something a little different.

    They tried with the iAd thing to somewhat compete with Google with the Ad money. That did not work.

    They really have no solution in place yet to compete with Amazon, YET.

    With time, that will continue to wash away profits. (Pricewise, all hardware continues to come down). That, or eventually the Tablet products that GooMazon produce will get better and better. If nothing changes, Apple will eventually loose out profitwise. Simple economics.

    But there is a solution.

    Walmart , and a lot of other retailers know whats gonna happen with Amazon beating them with the online presence they now have, and that will only get stronger.

    Google also can continue making money until something different happens.

    Apple should talk with the Walmarts with this approach: Subsidize the iPad. Make arrangements with ceratin customers that are willing to come on board with an experimental arrangement. Make arrangements with Apple for a contract that will reduce the price a certain %. Apple will make a small % also. They will both have to work out a 'Special' opportunity for Free two day delivery (ala Amazon Prime).

    I am sure they can make arrangements for all the fine details.

    Basically it would be Walmart who would come out ahead. But at the same time Apple starts putting in place something that will start to come together (in time) to what those other guys are doing now to undercut the profits that are necesarry now and later.

    My 1 cent worth


     

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    I have a great idea: why not sell BMWs through the extensive Chevy dealer network, at a discount to whatever price BMW dealers are selling them at? Why BMW will crush Kia, Hundai, etc! Or, maybe not...


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  • Reply 164 of 241

    Quote:

    Originally Posted by agramonte View Post


    ... there is no such thing as good soda.



    Damn.


     


    All these years, I've been enjoying a fermented soda called Veuve Clicquot thinking it's good.... I must have no taste I guess, unlike you.

  • Reply 165 of 241
    igrivigriv Posts: 1,177member

    Quote:

    Originally Posted by sflocal View Post




    My "poor-souls" remark was not to insult.  I'm referring to honest, hardworking people that have to live on a tight-budget, watch every dollar they spend because they have a family to support, maybe not getting ahead or be where they would like, etc.  My parents and us kids back then grew up that way.  I work hard for my money, as does everyone else I know.  I'm not a rich guy by far and I definitely sympathize with people that can't afford life's simple pleasures and enjoy life like that would like to.  We all want that for everyone.



    That being said, there's folks like me - a hardworking middle-class individual - that think if one cannot afford a given product you either determine if that product is worth the extra cost and value and save up for it, you buy a cheaper alternative that may or may not serve all your needs (which is OK), or you don't buy it.  Period.



    What people are doing here besides the trolling and iHating is literally loud whining which is just childish.  My parents back in the day were more worried about feeding family and affording school for the kids and saving for the future.  They literally saved for months so they could afford to buy me the first computer which ultimately led me to the career in software developing that I'm in to this day.  Not once did they go around saying "This $1,200 computer (back in the 1980's) should be $600!!  Let's raise a stink!".



    No, they paid the price because they saw value.



    I see the value that justifies why Apple is charging the $329.  I see where the extra money is going.  I see the false-promises that the other makers do to compete with Apple and I'm saying that Apple is right to not go that route.  Sure, Apple would sell a boatload more iPads if they priced it the same as the Android junk that's out there but as an AAPL shareholder, I don't want Apple to literally lose money on everything they sell in the "hope" they make it up later, which they won't.  They just won't. 



    What will happen is that the race will drag Apple down that same road that Android devices are in.  So what then?  Apple prices everyone else out and they decide they have to actually make money again and raise prices??? Will you defend Apple then for that??  I bet you will skewer Apple for that and will accuse Apple of price-gouging or monopolistic practices.



    So spare me your so-called insight.  You really have no idea.  You won't have me responding to any more of yours and others rants on this thread.  It's just downright sad the mentality you guys have.



     

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    The real point is that the price to a consumer of a smart phone (with contract) is AT LEAST $2500 PLUS the price of the actual device. People are willing to get iPhones, whose cost to them, therefore, is around $3K for two years. If they can do that, they can easily afford $300 for an iPad for their kid.


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  • Reply 166 of 241

    Quote:

    Originally Posted by sflocal View Post




    You know, I totally agree with you.  I work with some very, very wealthy clients and it just boggles the mind at how they brag about the airplane they bought, or the 6-figure Mercedes they are driving, yet refuse to spend any money to replace an aging printer or computer that a worker desperately needs to get their job done and be productive.



    I think being frugal is great.  Wasting money is always not a good thing.  Honestly though, rich people definitely do qualify as the worst of "cheapskates". 





    You're forgetting one thing here. Mercedes and plane are actually tools in the sense that OWNING them lets you make more money, because you're "trustworthy", you've got them to prove that.


    Doesn't make sense? Humans.


     


    However, that printer thing is a good example,watch the Jobs@Next dcumentary and you'll find a man with a lot of money that tells you (basically) "we've stopped haggling for good deals, we're paying too much for Macs and paper and ink and (...) and it all adds up".


     


    And you know what? Steve's right.

  • Reply 167 of 241

    Quote:

    Originally Posted by anantksundaram View Post


    Damn.


     


    All these years, I've been enjoying a fermented soda called Veuve Clicquot thinking it's good.... I must have no taste I guess, unlike you.





    Champagne's not Soda, it's double-fermentation wine.


    My 2 cents.

  • Reply 168 of 241
    sflocalsflocal Posts: 6,122member

    Quote:

    Originally Posted by anantksundaram View Post


    Damn.


     


    All these years, I've been enjoying a fermented soda called Veuve Clicquot thinking it's good.... I must have no taste I guess, unlike you.





    I shake my head when I see people drinking Fiji water when arrowhead is essentially the same.  Do I go to them and say "you're an idiot for paying that money to ship H20 halfway across the world, burning diesel fuel to ship it, packaging, etc.".  I just say "Well, it matters to them but I don't support that".



    No, the jerks here are the wimpy chest-thumpers that would never say a fraction of what they spew to someone's face.  Bunch of wannabe armchair-experts that think they speak for everyone else and have zero clue.

  • Reply 169 of 241
    hellacool wrote: »
    This bad boy is going to cut more into iPad sales than into Android 7" sales.

    OMG there is truly some serious wishful thinking here.
  • Reply 170 of 241
    rogifanrogifan Posts: 10,669member

    I'm holding a Nexus 7 right now, and it's got an amazing finish, and a rather smooth UX...

    I do agree though that the Mini is a strong contender, but looking at pixel count, Nexus 7 has a better screen.
    So just looking at numbers and without seeing the mini in person you can say the Nexus 7 screen is better?
  • Reply 171 of 241

    Quote:

    Originally Posted by island hermit View Post


     


    Is that what your crystal ball told you?


     


    Conversation at Apple:


     


    Tim Cook:  Well, what's the price point for the Mini?


    Employee 1:  $299


    Tim Cook: How many do you think we can sell at that point?


    Employee 1:  7.5 million in this quarter


    Tim Cook: How many can we make?


    Employee 2: We're a bit constrained but we can make 5.5 million.


    Tim Cook: Hmmm... how many can we sell at $329


    Employee 1: 5.75 million in this quarter


    Tim Cook:  $329 it is. Now get the f*ck out of here.



    This is the main thing. Apple doesn't compete with other companies, they compete with their component manufacturers' capability/capacity. The whiners don't get it. This is mostly not about specs.

    I was about to write this (but you had just pointed it out with other words before me):



    "Apple marketing chief Phil Schiller has publicly come to the defense of the $329 entry price of the iPad mini, saying that even at this price point Apple won't be able to meet demand, so you just STFU and hurry up if you really want one."

  • Reply 172 of 241
    apple ][apple ][ Posts: 9,233member

    Quote:

    Originally Posted by sflocal View Post


    No, they paid the price because they saw value.

     



     


    Good post!


     


    Back around 2000, when I was kind of broke, I was itching for a Powerbook, and I saved and saved, until I could buy one, and those things weren't exactly cheap at the time.


     


    I was extremely happy with my purchase, and I got a good many years of usage out of it. It seems like a lot of people that come from a certain generation have this sort of entitlement mentality, and to be honest, those people are a part of the reason why the country is in the state that it's in, IMO.

  • Reply 173 of 241

    Quote:

    Originally Posted by Apple ][ View Post


    Yep, Apple does not need to defend any of their prices.


     


    There are people who appreciate Apple's quality, and then there are people who don't. Luckily for those sorts of people,  bottom of the barrel Android devices are available.



     


    I also believe that people misinterpret Apple's motive in this situation.  Apple devices are not loss-leaders like the Amazon and Google devices.  As they derive most of their profit from the device itself, the ecosystem exists to drive hardware sales, while the other two devices profit via other means such as advertising in Google's case.  I believe the price is higher to foster Apple's image of the iPad Mini being a higher quality device, while still providing the lowest cost of entry for tablets into the iOS ecosystem.  It is up to the consumer if they deem the price point to be worth the "Apple experience", but I don't think Apple's pricing is so out of whack as to alienate a lot of consumers.  There is also some wiggle room in the price if Apple decides to lower it in the future while still retaining good profit margins.  I am also glad they did not decide to go with an 8GB version at a lower price point.  People do need some decent sized storage to fully utilize the device, though these days even 16GB to start doesn't seem enough at times after taking into account the size of the OS, productivity apps, music, books, some games, videos etc.  

  • Reply 174 of 241
    drblankdrblank Posts: 3,385member
    charlituna wrote: »
    Because nothing generates hits more than a scandal. So when there isn't one, the media will trump one up 

    Yeah, the media is notorious at overblowing or conjuring something silly to get readers to read their BS.
  • Reply 175 of 241
    sflocalsflocal Posts: 6,122member

    Quote:

    Originally Posted by Apple ][ View Post


     


    Good post!


     


    Back around 2000, when I was kind of broke, I was itching for a Powerbook, and I saved and saved, until I could buy one, and those things weren't exactly cheap at the time.


     


    I was extremely happy with my purchase, and I got a good many years of usage out of it. It seems like a lot of people that come from a certain generation have this sort of entitlement mentality, and to be honest, those people are a part of the reason why the country is in the state that it's in, IMO.





    Shhhh!!! Don't get the fandroid apologists here all riled-up with sane logic.  You mean you actually saved up to afford a product instead of screaming around in a room having a hissy-fit saying the product should be priced lower so the company loses money but you get what you want???  Say it ain't so!!



    Let's assume Apple is in the business to MAKE money.  Oh wait, but the fandroid freetards here will then say "But Apple is ripping off consumers when I can buy an Android P.O.S. hardware for at-or-below cost!!"  - Dang... they got me on that!!  *rolls eyes*

  • Reply 176 of 241
    drblankdrblank Posts: 3,385member
    mac-user wrote: »
    This is the main thing. Apple doesn't compete with other companies, they compete with their component manufacturers' capability/capacity. The whiners don't get it. This is mostly not about specs.

    I was about to write this (but you had just pointed it out with other words before me):

    "Apple marketing chief Phil Schiller has publicly come to the defense of the $329 entry price of the iPad mini, saying that even at this price point Apple won't be able to meet demand, so you just STFU and hurry up if you really want one."

    I don't know if Tim cook actually says the F word, Steve might, but Tim seems just a little too conservative for swearing in the work place. no offense Steve, I personally aren't offended by swear words as long as know it's in jest or at someone else, or it's actually warranted. Sometimes, ya gotta say "What the F"
  • Reply 177 of 241

    Quote:

    Originally Posted by Captain J View Post



    What bothers me far more than the $329 starting point is the total BS of a 100 up charge to double the storage. That's where the rip off is IMO.


     


    I agree, the price per storage level upgrade is steep. However, Apple was smart to set those price points at the beginning as people are now used to the next step up to be $100 more than the previous storage level.  It is not a shock for consumers to see that particular pricing model, it is just something that is accepted to get device one wants.  I don't like it personally, but they have been very successful with that formula.

  • Reply 178 of 241
    dasanman69dasanman69 Posts: 13,002member
    sflocal wrote: »

    What's even funnier is that those people on Android sites/blogs constantly complain at things like build-quality, customer service, etc. with their cheap Android devices and accept it as the price of buying cheap junk, yet they complain, b!tch, etc. about Apple pricing their products a little higher.


    There's a reason why Apple not only is profitable, but their products have the highest rating, and offer the best-in-class customer service.


    As for Android devices, you get what you pay for.  The embarrassing manufacturers churning out sheer junk just thumb their noses at them, give them a "sucks-to-be-you" attitude knowing they just come out with more cheap crap because the fandroids will always wet their pants at the next spec'ed-out piece of trash.


    Who's the sheep now?

    At least the Android camp has very real things to complain about lol
  • Reply 179 of 241

    Quote:

    Originally Posted by igriv View Post


     


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    You can believe what you want, but most people reading books want (a) reasonably sized text and (b) a reasonable amount of text on a page. These two factors point to more physical area. Of course it is better to ALSO have higher res (for smoother fonts), but given the choice most reasonable people would take the device which is the right size over one which is higher res. 


     


    Movies: same thing. Watching movies on a very small device is unpleasant, no matter how good the res is, because your eyes cannot pick out the detail. 1024x768 is not optimal, but it somewhat better than 720p, and thus more than adequate, resolution wise (again, I will agree that a Retina iPad is better for this purpose).


     


    To conclude, it is a bit disingenuous to talk about "dumbing down" after talking complete nonsense.


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    Would have to disagree on both points - On reading, You can set your font to resemble a paperback on a 7 inch screen easily (both size and content) so that is a non issue - On movies - this is not 1979, no reason to watch a movie on a 4:3 screen. 

  • Reply 180 of 241
    dasanman69dasanman69 Posts: 13,002member
    "Apple wrote:
    [" url="/t/153723/apple-exec-phil-schiller-defends-329-entry-price-of-ipad-mini/160#post_2218893"]
    Good post!

    Back around 2000, when I was kind of broke, I was itching for a Powerbook, and I saved and saved, until I could buy one, and those things weren't exactly cheap at the time.

    I was extremely happy with my purchase, and I got a good many years of usage out of it. It seems like a lot of people that come from a certain generation have this sort of entitlement mentality, and to be honest, those people are a part of the reason why the country is in the state that it's in, IMO.

    Ahh the good ol' "a penny saved is a penny earned". One appreciates whatever they saved up for so much more.
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