Apple Tax Strikes Again, iPad Mini Overpriced Versus Competition - HotHardware
Apple Tax Strikes Again, iPad Mini Overpriced Versus Competition

Apple Tax Strikes Again, iPad Mini Overpriced Versus Competition

Steve Jobs wanted nothing to do with a 7-inch tablet, calling such devices "tweener" gadgets that sit uncomfortably between a smartphone and larger size slate. He was wrong, of course, and Apple eventually came to the conclusion that it too needed a tweener device to compete with the popular Kindle Fire HD (best selling product on Amazon) and Nexus 7. Thus the iPad Mini was born. Game, set, match, right? Not so fast.

The problem with Apple's strategy is that the iPad Mini is a full $130 more than either of the above mentioned Android-based alternatives. There's no doubt the iPad Mini will sell, but will it dominate the category?

"Apple had an opportunity to step on the throat of Amazon and Google, yet decided to rely on its brand and focus on [profit] margin," said Bill Kreher, an analyst with brokerage Edward Jones, according to Fox News.

iPad Mini Prices

In case you missed the announcement, the iPad Mini runs $329 for the 16GB Wi-Fi model, $429 for 32GB, and $529 for 64GB. The models with a 4G LTE radio baked in run $459 for 16GB, $559 for 32GB, and $659 for 64GB.

Amazon's Kindle Fire HD and Google's Nexus 7 both start at $199 for 8GB, while the 16GB models run $249. Google's also planning to refresh its Nexus 7 lineup with a 32GB model that will replace the 16GB SKU at the $249 price point, a full $180 less expensive than the 32GB iPad Mini.

iPad Mini Flat

A straight-up comparison might not be fair.

"[The iPad Mini] really is not in the same category as some of the other 7-inch tablets," said Avi Greengart, a consumer electronics analyst with Current Analysis. "And that's before you consider that it has a premium design -- it's made of metal that's extremely lightweight."

What do you think about the iPad Mini's price points?
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I think its definitely overpriced to sway any casual Android fans from straying, but Apple fans will line up anyways many of whom probably already own a 10" tablet, phone, etc They just like adding to their stack of Apple gadgets... and parents will love to save any money on even slightly cheaper alternatives when all the 10 year olds beg for one this christmas.

We just have to face the fact that society just likes to buy the newest shiny thing, its just a bonus that apple actually bothers to improve the hardware year to year...although in the mini's case it is a small regression. I know a lot of girls that would prefer it because lots of women like erm...smaller devices

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.

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Avi Greengart is an idiot, obviously. 1280x800 easily beats 1024x768. Ratio and pixel density wise. The build quality of the Nexus is great, common fact. People buying the ipad mini are idiots. I expect Apple to bring an A game and they fail hard.

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No surprise there

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I was going to purchase an iPad Mini if it was anywhere near the the range of similar 7-inch tablets, but after seeing this I will just stick with the 16gb Nexus 7 I already have. I will probably purchase another Nexus 7 once they roll out the newer models with more storage options and internet service.

I agree people will still purchase them... I just wont be one of them.

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