Apple iPad 2 buyers never hesitated to pay $399 for the device when they could have purchased a lower priced 7 inch tablet,and he believes that the Apple iPad mini will prove to be a better deal for those looking to buy a full-sized iPad.
The bottom line is that Schiller says that buyers will pony up for a premium tablet and that the Apple iPad mini is a premium tablet when compared to its Android flavored competition. Besides the larger screen size, the Apple tablet is lighter and smaller. And unlike Amazon, willing to price its tablet at breakeven in order to sell apps, content and storage space to buyers, Apple is looking to make money on sales of the tablet itself. At $329, it is believed that Apple will duplicate the 58% to 103% gross profit margin it enjoys on the third-generation Apple iPad.
Considering that some had expected Apple to price the iPad mini as low as $249, will there be some sticker shock or is Schiller right about buyers paying up for what he calls a premium product? Pre-orders will begin Friday and the mini tablet will launch on November 2nd.