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Phil Schiller Defends iPad Mini Pricing Decision

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Porco

Porco

macrumors 68040
Mar 28, 2005
3,315
6,909
You can kind of see his logic. If people will pay lots, why wouldn't Apple want them to? If they don't, and sales are disappointing, they have room for a price drop later on. They've done it before.

If, however, sales are great and they sell as many of these devices as they can physically make, well 'cha-ching cha-ching' and forget the people who can't afford anything priced above a Nexus 7, eh Phil?!

Greedy Apple is greedy.
 
byke

byke

macrumors 6502a
Mar 29, 2007
724
60
LDN. UK
A stupid move in my opinion .... Apples out pricing itself.

While other makers are slashing prices to gain market share, apple is to relaxed in their current market and havent brought anything new to the table.

If Apple had said this is the new tablet with this new feature .... maybe it could have justified the price tag. But 329 for a half ass / 2 generations ago pad is a bad move by apple.
 
M

MichUS

macrumors newbie
Oct 24, 2012
1
0
bs

I usually love apple products and i am usually quite excited about what they present to us...but the iPad 4th gen. was EXTREMELY unnecessary and the iPad mini just seems to be apple wanting to have a device in the mini tablet category...the 3 updates in the 4th gen. iPad and the at least 2 year old technology in the over priced iPad mini makes them both unattractive...plus as apple just showed us...if you buy an iPad mini or iPad 4th gen. in 6 or 7 months there will be another new device thats "revolutionary" and what you bought today is just outdated
 
blackhand1001

blackhand1001

macrumors 68030
Jan 6, 2009
2,599
33
GeekLawyer said:
Plastic, "cheap," Android, junk.
Click to expand...

First of all, Phil Schiller doesn't even know what he's talking about. He said the bezel of the nexus 7 is plastic. Its not. Its aluminum. He flat out lied on stage. Second of all, it has a better screen than the iPad, better cpu, twice the ram, and gps in all models. Its also a nexus device which means instant OS upgrades. The nexus series actually has a better track record for upgrades than even apple. The original xoom (it sold alongside the ipad 1) and the nexus s have full blown jellybean with google now and every feature, not stripped down versions like the iphone 4 and ipad 2 have. The back of the nexus 7 is a soft touch leatherette material and just about every review has praised the feel of it. Many actually prefer it over hard aluminum.
 
K

kennethpm

macrumors newbie
Oct 24, 2012
3
0
why not charge $ 329 - they can get it!

The concept in marketing of 'price elasticity' is in play here.
Apple knows that they CAN GET $ 329 for this device, and will sell out, because their production will always lag behind the demand.

Later on, when they are readily available in stores (if ever), they can reduce the price, usually after the newer one comes out.

Apple is a master at limiting availability, therefore increasing pent-up demand, at higher prices than any competitors.

The reason it is priced at $ 329 is because they CAN! Who cares if it matches competitors tablets if they know they will sell out, regardless of price?
 
JayJayAbels

JayJayAbels

macrumors 6502
May 15, 2012
303
3
I initially thought $329 was too high. It isn't. This will still sell. No question.

The difference in build quality, screen real estate and ecosystem is what sets this tablet apart from its competition.

Apple doesn't let competitors set their price point for them and when attempting to maintain an aura of "quality over quantity"... this price maintains the sense of prestige that the company is known to have.

I'm actually selling my 3rd Gen iPad for it. I want the same experience but in a smaller form factor. (I'm well aware that I lose the retina display and I'm okay with that I think.)
 
L

lilo777

macrumors 603
Nov 25, 2009
5,144
0
chumpy34 said:
Answer: form-factor. Some people just want something a bit smaller to lug around and also it's the "newest" product so it will sell like hot-cakes. Also, I know I am someone who doesn't mind spending more money for say Oakley sunglasses compared to a cheaper knock-off, so I don't think Apple will have any problem selling the iPad mini, in fact, I could see these taking away sales of the larger ones...
Click to expand...

Is new iPod Touch selling like hot cakes?
 
S

Snits

macrumors member
Dec 10, 2007
30
0
I can't hear you

Don't you love commenters who know more than Apple does about its business? Obviously they are used to Amazon, Google, and Microsoft, none of whom know how to make dollar number 1 off of hardware in this arena. :confused:
 
S

Steviejobz

macrumors 68020
Jun 19, 2010
2,122
363
SoCal
nfl46 said:
Apple products have been overpriced for years, but yet people still buy them. This is nothing new. Apple could have lowered the price if they want, but they already know, its the holidays and people see $329 and iPad name and immediately want one.
Click to expand...

This is where I disagree. Competitors are closing the quality gap and there is a point where people will take serious looks at other manufacturers. Plus the global economy is slowing and Apple is more mainstream than is was 3-4 years ago. I do believe margin pressure is coming to Apple and it will start on price.
 
K

knemonic

macrumors 6502a
Jan 14, 2009
682
153
That statement wasn't really a defense, more of a we priced it at this price cause people were still buying the iPad 2 over android tablets priced at 399.

I would argue that the reason they priced the mini at 329 is so it is less likely to cannibalize the ipad and ipad 2.

Also, I think they know they won't be able to meet demand this xmas season, so pricing it at 299 would mean they would not meet quarter expectations because they don't add preorders and items shipped to their quarterly numbers.
 
L

latestmonkey

macrumors 6502
Aug 13, 2002
309
0
Apple doesn't need to defend anything when it will sell like hotcakes. If Google could sell the nexus at $329, they would. The name of the game is profit, not charity.

That being said, ****, Phil! Defending it makes it worse.
 
B

blackbelter

macrumors member
Sep 17, 2012
86
0
Judgement from any single person is unavoidably biased. Instead market will objectively decide whether 329 is too much for mini.
 
S

Skevaboy

macrumors member
Dec 14, 2011
55
6
Toronto
Orlandoech said:
I for one think its a rip off, $249 to $299 TOPS. Thanks to the overpriced, in sufficient hardware, especially resolution it made my buying the Kindle Fire HD that much easier.
Click to expand...

Cons
•Web Browsing experience is a let down. Doesn't feel fluid like we do on iPad3
•The keyboard keys are not as sharp as one would expect.

•Amazon’s app store has about 30,000 apps, versus more than 500,000 for the iPad

•Lacks features the iPad offers. Among these are a rear camera, and built-in dictation, instant messaging and maps, and the ability to beam video or music to a TV using a device like the Apple TV. It lacks artificial-intelligence features like Apple’s Siri

•iPad mini. has about a 49 percent larger Web-surfing area in portrait mode and a 67 percent larger area in landscape mode

shall I keep going.....
 
F

futbalguy

macrumors 6502
May 16, 2007
285
63
Since when did an apple consumer product (not a laptop) start to be evaluated based on specs? I guess I am not understanding why so many people spent >$500 on a full i pad but cant spend $330 on a iPad mini that does pretty much the same stuff. What are people doing with their iPads that the current specs cant handle? The screen is not Retina but will look very good. It is extremely light and therefore easy to carry and use. Battery last 10 hours.

I think this device looks much better than the old iPad and its 3/5 of the price. Apple products have ALWAYS been more expensive than the competitors.
 
L

lilo777

macrumors 603
Nov 25, 2009
5,144
0
kennethpm said:
The concept in marketing of 'price elasticity' is in play here.
Apple knows that they CAN GET $ 329 for this device, and will sell out, because their production will always lag behind the demand.

Later on, when they are readily available in stores (if ever), they can reduce the price, usually after the newer one comes out.

Apple is a master at limiting availability, therefore increasing pent-up demand, at higher prices than any competitors.

The reason it is priced at $ 329 is because they CAN! Who cares if it matches competitors tablets if they know they will sell out, regardless of price?
Click to expand...


"why not charge $ 329 - they can get it!"

Can they? We'll see. Have you ever seen Apple defending their pricing before?
 
L

Lancetx

macrumors 68000
Aug 11, 2003
1,991
619
In the end, consumers will vote with their wallets. If the iPad mini is truly overpriced then it won't sell, period. I have a strong feeling that it likely will sell very well, so if that indeed ends up being the case, then it's not truly overpriced at all. We'll know soon enough which way it ends up going.
 
AppleWarMachine

AppleWarMachine

macrumors 65816
Sep 27, 2011
1,085
640
Michigan, US
I'm a little disappointed on the pricing...so if i get an iPad Mini 32GB with a smartcover and taxes, it going to cost me $500, damn :mad:........
But it's apple, so I will buy it anyway :D
(and that's how they make Billions of dollars) :apple:
 
Orlandoech

Orlandoech

macrumors 68040
Jun 2, 2011
3,341
887
TimUSCA said:
Yeah, screw all the amazing apps you'd actually USE that screen for and go have fun with the Kindle Fire.

The two don't even compare, and Apple knows it. THAT'S why it's $329.
Click to expand...

I have an iPhone 5, this was going to be for my 5 year old daughter who likes to watch netflix and play angry birds and maybe some reading. For 199, its a no brainer.
 
D

dafyddp

macrumors newbie
Oct 24, 2012
1
0
UK price starts at £269 - about $430

Not sure about mainland Europe, but we get a particularly raw deal in the UK where the starting price for a iPad Mini is £269 which is around $430.
And it's not just the mini that suffers transatlantic inflation:
iPad 3 (basic retina model) - from £399 ($638)
MacMini - from £499 ($800)
27" iMac - £1499 ($2400)

But it's not just Apple that plays this game. The Nexus and Kindle fire both come in at around £159 ($255) which I believe is substantially more than the US price.
 
ng-design

ng-design

macrumors member
Jul 18, 2011
47
18
Nashville
My issue isn't the price, it's the lack of Retina display. You can get an iPhone for $199 with Retina or an iPad for $499 with Retina. How can they lump a product in the middle with an inferior display?

And you can't argue that Retina displays don't make a difference in the overall user experience. Apple itself touted the significance of the Retina screen when they debuted the iPad 3 in March. Now they're trying to sell a new product using last year's technology and act like it's just as good?

I will gladly agree that Apple's products are superior and worth the extra cost when similar sized tablets sell for $199. But downgrade the screen? No, thanks.
 
T

TreyCox

macrumors regular
Jan 6, 2012
220
328
Washington, DC
I'm so glad some people on this forum aren't in charge of Apple. $329 (+tax) is coming out of my bank account very soon, as it will out of many many others throughout Christmas shopping time.
 
JayJayAbels

JayJayAbels

macrumors 6502
May 15, 2012
303
3
blackhand1001 said:
First of all, Phil Schiller doesn't even know what he's talking about. He said the bezel of the nexus 7 is plastic. Its not. Its aluminum. He flat out lied on stage. Second of all, it has a better screen than the iPad, better cpu, twice the ram, and gps in all models. Its also a nexus device which means instant OS upgrades. The nexus series actually has a better track record for upgrades than even apple. The original xoom (it sold alongside the ipad 1) and the nexus s have full blown jellybean with google now and every feature, not stripped down versions like the iphone 4 and ipad 2 have. The back of the nexus 7 is a soft touch leatherette material and just about every review has praised the feel of it. Many actually prefer it over hard aluminum.
Click to expand...

You lost me (read: us) at "full blown Jellybean"...
:rolleyes:
 
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