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 inches
    768 x 1024 pixels
  • Camera 5 MP (Single camera)
    1.2 MP front
  • Hardware Apple A5, 0.5GB RAM
  • Storage 64GB,
  • Battery 4440 mAh
  • OS iOS 9.x

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107 Comments

99. freefour1968

Posts: 9; Member since: Oct 16, 2012

To all the android fans bashing apple..... get a real life. I have heard all of what you are saying over ten years ago and almost thirty years ago accept it was windows vs apple. its never going to end. you try and say apple is crap because it uses old hardware because its not the latest and greatest specs..... do your homework and stfu. apple doesnet have to use thw lastest harware because they build their software specificaly for their hardware . what does that mean......hmmmmm better exicution of the capabilities and expiriance of the OS. Microwsoft tried repeatedly to copy and perfect it but couldnt, and now android has tried the same and cant. you cant buipd a software to run on every machien out there with wildly differant specs and expect it to be fluid and good user experiance for everyone. there are to many variables. Apple builds the OS and the hardware to fit it. thats a closed system yes but thats how it is done to achieve the best results. Microsoft finaly leard this when wp7 came and required every phone running its OS to have very specific harware. and in so doing a nokia wp runs just like a iphone.... fluid and smooth . Maybe someday android will learn this lesson. I have had pcs and macs for thirty five years and iphones and adroids for five years with palm and bb before those , apple works and works well with the specs it has and mosst people want that, the build quality is there to make use the device will last more than a year.... I still have a imac from 1999 that runs 10.3.9 and a ibook the same... cant say that for a pc. I have tge original iphone still working flawlessly, battery lasts all day still, so apple builds great products. stop your hateing and get a life kids.

94. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Hope someone from Apple doesn't come out to say sorry again after NEXUS is released ... :)

92. robocopvn

Posts: 504; Member since: Mar 10, 2010

let me tell the truth: Obviously, the larger screen with lower resolution is much much cheaper than the smaller screen with higher resolution lolz =DDDD

90. pikapowerize

Posts: 1869; Member since: May 03, 2012

yeah... premium looking but only the looks and feels but the experience...not really! :)

89. InspectorGadget80 unregistered

Great form my a$$ still the most expensive 7" tablet compare to 249$ price tag

88. someones4

Posts: 628; Member since: Sep 16, 2012

'it's expensive because we're apple. if you can't learn the right way of earning and spending money, you don't deserve our wonderful, wonderful products'-phil

84. angelesmec unregistered

Go and donate your money..after all you woudn't care and what matters is the shiny fruit logo. Well, that's fine. Haha!

82. darac

Posts: 2156; Member since: Oct 17, 2011

Apple's arrogance at its worst!! Ugh.. I can't wait for the Samsung nexus 10 to finally shut their filthy mouths

78. rickywinataa

Posts: 262; Member since: Apr 05, 2012

apple is pushing their luck way too hard here. apple is just bad at making pocket friendly gadgets. it's better for them to stay at the premium territory and give iPad mini great specs rather than half cooked specs like this. i own android phone & tablet, but i still want 4th gen iPad real badly however i won't even consider buying an iPad mini

75. gnex2011

Posts: 3; Member since: Sep 27, 2012

Okay, so the iPad sold good a few years ago. Now we can get better hardware and software for way cheaper. Putting the a5 processor in it was low. This things hardware is 2 years old! And that beautiful screen? Haha! Lets review. 160 ppi 7.9 inch screen, or 220 ppi 7 inch screen for $129 less? Please! Same old hardware and boring old software! Apple is digging their own grave

72. dekay84

Posts: 5; Member since: Feb 27, 2012

where does he explain why its priced like that? i dont get it i read it and it only says apple assumes that their customers will have bought the ipad 2 for 399 so they priced the mini in accordance. i dont get it... i think its ridiculous 7-8" shouldnt cost more than 180 ish for basic connectivity + normal media capabilities.

107. someones4

Posts: 628; Member since: Sep 16, 2012

it's because its an apple product. no further explanations needed.

69. CreeDiddy

Posts: 2292; Member since: Nov 04, 2011

For those that think the iPad Mini is overpriced. Stop it! Google decided to set the price at $199 for 8GB Nexus 7. 8GB really?!?! You can't do nothing with that much storage. You actually have 5GB left from the OS being installed. $249 now at 32GB is a good value. However, the tablet is way under-priced. How will Google maintain any profit running a business like this on market share and selling services? Plus no camera? That alone costs an extra $50. So if you think of what the price of the tablet could have been by giving buyers half the experience by adding a camera, the tablets would have been priced at $249 and $299 respectively. So $329 is reasonably priced for a high end tablet. Specs alone aren't the true story. Its the form factor. The resolution of 1024x768 on the iPad 2 looks fantastic! Let alone the 1024x768 resoltion should look just as crisp as the iPad 2. Don't let people tell you that 1280x800 will look sharper. Please side by side you won't notice a huge difference. It's hard to tell the difference between the iPad 2 and iPad 3. Only if you observe long enough you will notice the sharpness of the iPad 3. So this talk of the Nexus 7 having better looking screen is mute. The A5 processor is more than adequate on running games, checking email, broswing the web, watching movies, listening to music. Guys this is version one and the iPad mini is going to improve better and better as time evolves. I don't hear any negatives about the processing speed of the iPad 2. Again another mute point people have. Having a front facing HD camera and 5MP camera is big deal to most buyers as this is their all in one tablet that can everything. Including Facetime chat, etc...Just watch Google is taking note and will add a back camera to their Nexus 7 II device. What else Nexus 7 owners can you think of that is irrelevant to iPad buyers.... Battery life is 2 hours better than Nexus 7. Let talk about the weight as its slimmer and lighter too. The only thing is having NFC capabilities that I see as an advantage. The problem with the Nexus device's is the build quality. Look at all of the complaints people have had because of build quality.

71. wojey

Posts: 14; Member since: Sep 19, 2012

agree 100%... But honestly don't waste your time i don't have anything against android i actually like some of their products (like the sg3) even tho i own an iphone. But android fans are really annoying most (not all) of them feel the need to bash apple for everything.

76. gnex2011

Posts: 3; Member since: Sep 27, 2012

I have an iPad 2, and its a slouch. Frequent lag, slow browsing and my screen resolution is horrible. My geek bench score on my iPad is 760. My galaxy nexus running jelly bean is 1400! The nexus 7 is way more powerful in terms of processing. Nexus 7 doesn't sell in 8gb any more. The 16gb model will be $200 and the 32gb model will be $250. I haven't heard one bad thing about the build quality of the nexus 7. I have only heard good things about the nice rubberized back. For $200 the nexus 7 is a steal. I do admire the aluminum casing on the iPad, but iOS is boring. Ever since my update to iOS 6 I have had wifi issues, the maps stink, it's slower and my battery life went from 12 hours to about 4. Android and google will keep innovating and making new products while apple will make the same thing over and over, just different screen sizes and faster processing.

66. Pdubb

Posts: 250; Member since: Aug 08, 2011

Apple has to make a lot of money now! Just think they are not very diversified and at any moment one product could tank such as the iPad or iPhone and they could be in big trouble. We talk about MS having problems with Windows just think if Apple has a hiccup with its cash cow?

63. Jeradiah3

Posts: 1149; Member since: Feb 11, 2010

Whether it wouldve been $399 or the current $329............the price is still too high. Apple must be run by Republicans because they dont care about the state of the economy nor the amount of people that arent spending that much for a 7.9 in tablet when the Kindle Fire HD and the Nexus 7 & are about 1/2 that price!! The only people that dont care about the price are either the wealthy or Apple fanatics that will break their back to get the iPad MIni Yes, I said republicans lol

61. tedkord

Posts: 17532; Member since: Jun 17, 2009

Why are people getting worked up? He's an Apple marketing guy, what did you expect him to say? That it's a ripoff? It's his job to spin this positive. The real reason Apple priced it so high is they know their core loyalists will buy it. They have s core group who will buy anything they put out at ridiculous markups just to have that Apple logo showing. It's his capitalism works. You charge what you can get. If you're selling your house, and the market takes a sharp upturn, you sell at the inflated price, you don't tell the buyers that it's overpriced and you're going to sell for less.

56. ryan5609

Posts: 107; Member since: Nov 01, 2011

"Others have tried to make tablets smaller than the iPad and they've failed miserably." Really A$$face...that's quite the opinion you got there. So all other tablets smaller than the iPad have failed miserably. So everyone else owns a hunk of junk I guess. This is why I hate Apple, and will never buy anything they ever produce. I can more than afford to buy their products, they make great quality devices and computers. But they are so damn smug, it drives me crazy.

55. lubba

Posts: 1313; Member since: Jan 17, 2011

These whole two weeks will be iPad week. There be at least 10-20 articles same thing over and over regarding the ipad. I hardly comment or read anything Apple cuz there's nothing new or spectacular. I do though look at how many comments listed and there's alot. A few or more comment go just to bitch on Apple. I think they should leave Apple articles alone. ..

52. ekia007

Posts: 61; Member since: Feb 27, 2012

You damn ass PHil, Google and Amazon has never failed making in table. what are you talking about? A tablet with iPad2 specs (2 years old), you are selling it for $329. The price is hefty. Apple is trying to ripe off our ass.

51. dorianb

Posts: 617; Member since: Oct 24, 2012

i wonder how many Foxconn workers are gonna **** and/or *** making this thing?

50. gallitoking

Posts: 4721; Member since: May 17, 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: 14605; Member since: Dec 19, 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: 4721; Member since: May 17, 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.

102. prms111

Posts: 10; Member since: Oct 06, 2012

n u will be forgotten in a day

48. solidsnakeduds013

Posts: 221; Member since: Oct 20, 2010

More money in their pockets... dam... Apple is trying to become the richest company in the world

43. prms111

Posts: 10; Member since: Oct 06, 2012

And they say they are more committed to customer service.............god they don't see anything except money......

41. Mr.Mr.Upgrade

Posts: 474; Member since: Aug 30, 2011

Picture of Dude holding iPad mini looks like his face says I cant believe This BS lol

40. Mr.Mr.Upgrade

Posts: 474; Member since: Aug 30, 2011

Picture of Dude holding iPad mini looks like his face says I cant believe This BS lol

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

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