Apple executive Phil Schiller explains why Apple priced the iPad mini at $329
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.
1. RaKithAPeiRiZ (Posts: 1372; Member since: 29 Dec 2011)
B*itch please .......its still overpriced
25. speckledapple (Posts: 879; Member since: 29 Sep 2011)
I think many would certailny agree with that.
58. addict27 (Posts: 7; Member since: 01 Oct 2012)
I agree, and I think it will cut into regular iPad sales in general more than Android 7" tablet sales. At 7.9" it's only 1.8" smaller than the regular iPad. At least with Android most tablets are 10.1" vs 7", providing more a distinct difference.
73. JeffdaBeat (unregistered)
For all their function...ALL tablets are over priced. But again, do we expect anything less? Apple has always been priced higher than competitors. I don't know why anyone would be shocked.
But let's be honest, there are a lot of people that will probably buy this. I remember back in the day when people thought the iPhone was too big. I can understand the same feeling about the iPad. Do I think it's worth the money? Heck no. But it's not about what a product is worth, it's about what people are willing to pay for it.
74. PhenomFaz (Posts: 1098; Member since: 26 Sep 2012)
isnt it become a trend for Apple to mess up and then make excuses...ipad mini isnt priced right and Apple's made a mess but instead of sorting it out they just try to justify it.
For example the purple tint on their phone in the camera...they justify it by saying its behaving normally and you have to take the picture at the right angle...oh please!
They should just stop because really its just sad...
85. Nadr1212 (Posts: 741; Member since: 22 Sep 2012)
WOW!!!!!!!!!! apple just made a smaller iPad 3 and their profits will rise up to 50%
That s**t is soooooo unfair for other companies
27. Mxyzptlk (Posts: 4014; Member since: 21 Apr 2012)
Are you kidding me? At $329, that's a steal. I say the price is too low.
29. Savage (unregistered)
Ikr? $329 is lower than $199!
39. Reluctant_Human (Posts: 864; Member since: 28 Jun 2012)
I agree it should be $3290 and you should send apple the difference when you buy it.
64. Zero0 (Posts: 583; Member since: 05 Jul 2012)
At this value price, I ordered 17. Even then, Apple still deserves more of my monies.
Its display and processor are superior to that of the Nexus 7, and its closed up ecosystem ensures that my content is controlled by one corporation. We wouldn't want to give consumers freedom of choice, now would we?
So I'd agree. I'd say a fair price is $450. $50 less than the iPad with a larger display, higher resolution, and substantially better processor.
103. Zero0 (Posts: 583; Member since: 05 Jul 2012)
Indeed it is. There are at least 3 ridiculous statements in that comment that no reasonable person would ever honestly say.
46. Hammerfest (Posts: 370; Member since: 12 May 2012)
On the flip side:
The one thing it had going for it was the 4:3 aspect ratio, however, they had it kill itself by giving it a s**t resolution and just past 160ppi...
If this thing would have had a killer resoltuon to go with that letterbox aspect ratio, I would have had infinitly more respect for Apple and the iPad Mini, which considering I hate apple with a passion and dont ever shy away from a chance to completely shatter any illusions any friends/family who own an iNotCr4pple device, is a real miracle in and of itself...
Higher resolution, and the ability for external media (MicroSD), and $329 would have been a damn decent price...
Suicide is suicide however... and I still hate Apple for their overpriced hardware/software and YOUWILLLIKEWHATIGIVEYOUORGTFO OS setup.
57. Topcat488 (Posts: 1170; Member since: 29 Sep 2012)
This iPad mini, looks just like the Goopad mini that's coming out next month for $99. It'll be running on android jelly bean, but only with a 2.0 mega pixel rear camera.
87. deuel_18 (Posts: 54; Member since: 25 Sep 2012)
i know and in his claim, "...Schiller said that tablet buyers would be willing to pay up to obtain the value of the iPad and the iOS experience. He also pointed out that Apple iPad 2 buyers never hesitated to pay $399 for the device when they could have purchased a lower priced 7 inch...", thats not a good image. that sounds like saying "oh we really overprice our product cus consumer likes them"..
95. DerryAhmad (Posts: 245; Member since: 05 May 2012)
And many will buy it anyway cause it has Apple logo on it.
101. ddeath (Posts: 163; Member since: 14 Apr 2012)
Phil: "Because you isuckers will buy it no matter how I priced it, even though I'm using old tech on a new product. Then I'll release iPad mini 2 next year with A6 and 'retina' display, and the buying starts again. My job is SSOOOOOO secured!"
105. someones4 (Posts: 619; Member since: 16 Sep 2012)
i can imagine him saying that. Hilarious.
3. procoder (Posts: 10; Member since: 23 Mar 2012)
if they make small products..it should be overpriced than bigger one..thats the dilemma apple were leaving for years..phone and ipod was costlier..
now when 7 inch space was taken for 199usd..they want to capture that space with bigger profit margin..by keeping some older chips and less ram and still calling it revolutionary...FU apple..
4. remixfa (Posts: 14059; Member since: 19 Dec 2008)
nothing like trying to pawn off low rez screens, 2 generation old chips, and a stale OS off as "premium".
19. infinitemethod (Posts: 138; Member since: 04 Sep 2012)
That is perfectly said. Well played, sir!
21. TheRetroReplay (Posts: 245; Member since: 20 Mar 2012)
PA should delete all other comments, this is the perfect response to Apple's reasoning.
5. debugger919 (Posts: 24; Member since: 24 Oct 2012)
Typical marketing bullsh*t, he said when price is 399 people want it, now it's 329 don't you people want it more? But don't forget this is a smaller size, you can't compare the price with different sizes.
6. Savage (unregistered)
He's from marketing people. Its his job to glorify and magnify everything Apple does. So don't believe him. There are still better 7" tablets.
And iOS isn't premium. Its dated. It lacks in functionalities.
7. Xquisite (Posts: 87; Member since: 23 Apr 2012)
I'm getting an iPad Mini, know why? Because I have a Galaxy S3 running JB, and I have had a GNex. What's the point of getting a Nexus 7 if it will just be a bigger version of my Galaxy S3 and my old GNex? Variety is the spice of life.
If you android fanboys hate apple, stop clicking on f**king apple news articles. You android fanboys are more annoying than those iSheep that you all love to make fun of.
20. Xquisite (Posts: 87; Member since: 23 Apr 2012)
You android fanboys also hate when you make a comment saying " Apple can't blah blah, android is better" then get mad when you get thumbs down without an explanation.
Come on speak up android fanboys, I love a good argument.
23. Savage (unregistered)
You want an argument where there isn't any. You said that you used an SGS 3, a GNex and now you wanna try something new. So go ahead. You are welcome.
If you thrashed talked about saying how Android sucks and iPad is smoother, lighter, faster etc then you should expect android fanboys to go ballistic. But you didnt.
24. Savage (unregistered)
And btw, saying how Nexus 7 is a bigger version of GNex, in that sense iPad is just a bigger version of iPhone. Do you own an iPhone too?
30. whysoserious (Posts: 317; Member since: 20 Jul 2012)
Then go get one and stfu. Nobody's stopping you. That's my argument.
35. BadAssAbe (Posts: 434; Member since: 22 Apr 2011)
The only reason apple is a bad company is because they overcharged on all their products and use words like "premium" to justified it.
Limited OS with deceit Specs and Quality material.
Just compare with a phone like the LG G
iPhone5 32GB $750
LG Optimistic G 32GB or more $550
Dont support a company thats all about maximum profit
96. DerryAhmad (Posts: 245; Member since: 05 May 2012)
I like that you're differentiating your gadgets throughout different platforms.
The Galaxy S3 is a great device.
But If budget is not your concern, I think you're better off with the iPad4 instead of iPad Mini due to it's having dated specs.
9. ahomad (Posts: 162; Member since: 15 May 2012)
oh, and I thought it is priced 329 because apple loves money more than anything else. bad me!!!
10. bragzter (Posts: 48; Member since: 21 Feb 2012)
"Failed miserably" Really? Haven't they heard about the Nexus 7, oh wait they have, they compared their mini to it. Apple is in for the money and nothing else, so their reasoning behind the price is pure BS.
11. bwphotoguy (Posts: 18; Member since: 24 Oct 2012)
It's only greed.........the price doesn't have to be that high. Apple continues to get fat from profits and doesn't seem to give and price considerations to it's customers. It's very sad Apple is like that and people for some reason still buy their products which in turn supports their greedy culture!
12. rishabh876 (Posts: 8; Member since: 17 Sep 2012)
apple has broke all records of being greedy.
They are the richest beggers i have seen. I dont when ipeople will stop paying them.
14. SGSatlantis (Posts: 205; Member since: 20 Jul 2011)
"Others have tried to make tablets smaller than the iPad and they've failed miserably. These are not great experiences"
The Nexus 7 seemed pretty great to me, stop lying to people.
15. theBankRobber (Posts: 649; Member since: 22 Sep 2011)
Apple knows if people will pay hundreds of dollars for their products, they can charge whatever they want and people will still buy it.
16. Sniggly (Posts: 7177; Member since: 05 Dec 2009)
You know, as much as parodies of Apple execs have them declaring "we can charge what we want and you assholes would pay it," I never expected one to actually say it for real.
26. Stuntman (Posts: 754; Member since: 01 Aug 2011)
Didn't he also say that people will "flock" to the iPad Mini?
17. infinitemethod (Posts: 138; Member since: 04 Sep 2012)
What a douche. There's something extremely creepy about that man, I cannot pinpoint exactly what it is about him, though he is still a huge douche. iFAIL price for an iFAIL device.
18. sithvenger (banned) (Posts: 371; Member since: 25 Aug 2012)
$299 so a little over priced but worth it
22. Aeires (unregistered)
And there you have it, directly from an Apple exec, people will buy it regardless of the price. They know their customer base and they know they can do just about anything and still get the sales. Perfect example of herd mentality.
31. cornerofthemoon (Posts: 518; Member since: 20 Apr 2010)
It doesn't really matter. Apple is going to sell a boatload of them anyway. Personally, I prefer the Nexus.
33. kindlefireowner (Posts: 426; Member since: 05 Dec 2011)
Not a Apple hater, $329 for the ipad mini, $299 for the ipod touch is crazy. My kindle fire plays flash. Which is still important so the mini was never on my radar. I wanted to replace my old ipod touch, but not at $299. I thought the sweet spot was suppose to be $199. Apple did not get the memo.
37. 90ninjas (Posts: 106; Member since: 07 Aug 2012)
Oh they got the memo alright. They just like to go outside the memo because, as the guy stated, people will buy it anyway.
36. structureman116 (Posts: 135; Member since: 14 Sep 2010)
58-103% profit margin is greed, and nothing more!
40. Mr.Mr.Upgrade (Posts: 425; Member since: 30 Aug 2011)
Picture of Dude holding iPad mini looks like his face says I cant believe This BS lol
41. Mr.Mr.Upgrade (Posts: 425; Member since: 30 Aug 2011)
Picture of Dude holding iPad mini looks like his face says I cant believe This BS lol
43. prms111 (Posts: 10; Member since: 06 Oct 2012)
And they say they are more committed to customer service.............god they don't see anything except money......
48. solidsnakeduds013 (Posts: 217; Member since: 20 Oct 2010)
More money in their pockets... dam... Apple is trying to become the richest company in the world
50. gallitoking (Posts: 4690; Member since: 17 May 2011)
when you create a successful company like Apple you set your prices. either people buy them or not .. that simple.. for the people that want to pay for Apple products is my money and I can dam well buy what I wants why the hate.. go ahead buy the cheap N7 tablet. that tablet will be forgotten in less than year just like all other Android products..
54. remixfa (Posts: 14059; Member since: 19 Dec 2008)
well that argument no longer flies chicken head. Apple just released the iPad3, now they are releasing a 4th. They are putting downward pressure on their own ecosystem and devaluing their own products.. a long held line of stupidity by iNuts. Apparently now, even overpaying massive profit margins for a product cant even keep its value up nor its spot on the shelf.
Your just paying more. Your not getting more.
70. gallitoking (Posts: 4690; Member since: 17 May 2011)
hmm paying more.. lets see people that bought the Bionic. no JB people that bought a Galaxy tab. who remembers those doubt Samsung will support any of those devices.. those feel robbed of their hard earn money but people that bought the ipad 3 even the ipad2 like my brother are still happy... but you wouldn't understand of customer being satisfied. you are Android.. the land of the free and forgotten.