Apple executive Phil Schiller explains why Apple priced the iPad mini at $329

Apple executive Phil Schiller explains why Apple priced the iPad mini at $329
Even though some of the later leaks revolving around the Apple iPad mini were able to predict the exact $329 price for the entry-level tablet announced on Tuesday (are we playing The Price is Right?), it still didn't take away the sting for many potential buyers of the 7.9 inch tablet. For these potential Apple iPad mini buyers, the hope was that since Apple was obviously competing in the low-priced 7 inch tablet segment with the Amazon Kindle Fire HD and the Google Nexus 7, the smaller Apple tablet would be priced closer to the $199 that those two Android tablets are priced at.

For comment, we turn to Apple's Senior VP of worldwide marketing, Phil Schiller. After all, if anyone in Cupertino knows how Apple arrived at that figure, it would be this long time veteran. According to Reuters, 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 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.


source: Reuters

Related phones

iPad mini
  • Display 7.9" 1024 x 768 pixels
  • Camera 5 MP / 1.2 MP front
  • Processor Apple A5, Dual-core, 1000 MHz
  • Storage 64 GB
  • Battery 4440 mAh

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107 Comments

1. RaKithAPeiRiZ

Posts: 1488; Member since: Dec 29, 2011

B*itch please .......its still overpriced

25. speckledapple

Posts: 902; Member since: Sep 29, 2011

I think many would certailny agree with that.

58. addict27

Posts: 7; Member since: Oct 01, 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: 1236; Member since: Sep 26, 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...

83. gallitoking

Posts: 4721; Member since: May 17, 2011

there is no perfect company...

85. Nadr1212

Posts: 741; Member since: Sep 22, 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

86. Zero0

Posts: 592; Member since: Jul 05, 2012

A small iPad 2, you mean.

27. Mxyzptlk unregistered

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! *facepalm*

39. Reluctant_Human

Posts: 913; Member since: Jun 28, 2012

I agree it should be $3290 and you should send apple the difference when you buy it.

64. Zero0

Posts: 592; Member since: Jul 05, 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.

100. someones4

Posts: 627; Member since: Sep 16, 2012

i really hope that's sarcasm

103. Zero0

Posts: 592; Member since: Jul 05, 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: 384; Member since: May 12, 2012

I agree... 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: 1412; Member since: Sep 29, 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: Sep 25, 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: 296; Member since: May 05, 2012

And many will buy it anyway cause it has Apple logo on it.

101. ddeath

Posts: 170; Member since: Apr 14, 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: 627; Member since: Sep 16, 2012

i can imagine him saying that. Hilarious.

3. procoder

Posts: 10; Member since: Mar 23, 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: 14605; Member since: Dec 19, 2008

nothing like trying to pawn off low rez screens, 2 generation old chips, and a stale OS off as "premium".

13. bwphotoguy

Posts: 18; Member since: Oct 24, 2012

Couldn't agree more!

19. infinitemethod

Posts: 151; Member since: Sep 04, 2012

That is perfectly said. Well played, sir!

21. TheRetroReplay

Posts: 256; Member since: Mar 20, 2012

PA should delete all other comments, this is the perfect response to Apple's reasoning.

5. debugger919 unregistered

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: Apr 23, 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: Apr 23, 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.

* Some comments have been hidden, because they don't meet the discussions rules.

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