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ElectronGuru

macrumors 68000
Original poster
Sep 5, 2013
1,656
489
Oregon, USA
One of the oldest rules with products is that smaller stuff costs less. It has less so it somehow costs less to make so it costs less to buy. That expectation is alive and well today, driving prices and features in the latest electronics.

The Mini 2 had all the same parts as the Air 1. Same processor, same GPU, same materials, same cameras, same antennas, same storage, same resolution. The cost to produce the Mini 2 and Air 1 were so close, apple margins on the Mini 2 were noticeably less. Because the price was less, in closer proportion to its size.

The price is still less and now with the Air 2 and Mini 3, so are the specs. Apple could have 1) kept the minimal margins or 2) charged the same for both models, or 3) lowered the specs (production cost). They went with #3 and we've got a lot of disappointment. But what if they had gone with #2? Would you pay as much for a Mini 4, equal in every respect with an Air 3?
 

vgamedude

macrumors 6502a
Dec 10, 2013
798
6
One of the oldest rules with products is that smaller stuff costs less. It has less so it somehow costs less to make so it costs less to buy. That expectation is alive and well today, driving prices and features in the latest electronics.

The Mini 2 had all the same parts as the Air 1. Same processor, same GPU, same materials, same cameras, same antennas, same storage, same resolution. The cost to produce the Mini 2 and Air 1 were so close, apple margins on the Mini 2 were noticeably less. Because the price was less, in closer proportion to its size.

The price is still less and now with the Air 2 and Mini 3, so are the specs. Apple could have 1) kept the minimal margins or 2) charged the same for both models, or 3) lowered the specs (production cost). They went with #3 and we've got a lot of disappointment. But what if they had gone with #2? Would you pay as much for a Mini 4, equal in every respect with an Air 3?

If I were not purchasing a new large smartphone I would say yes, If I was back in the tablet market I would have no problem paying the same.
 

rkuo

macrumors 65816
Sep 25, 2010
1,220
825
In a heartbeat. The difficulty with that is that Apple is trying to hit that 399 or 299 price point, but without cannibalizing 499 iPad sales.
 

ElectronGuru

macrumors 68000
Original poster
Sep 5, 2013
1,656
489
Oregon, USA
Would you pay iPad Air prices for an iPad Mini?

In a heartbeat. The difficulty with that is that Apple is trying to hit that 399 or 299 price point, but without cannibalizing 499 iPad sales.


Yes, because they are playing the smaller = cheaper game and everyone is losing: 1) they don't get to make the premium machine they want to, 2) we don't get to buy the premium machine we want to, and 3) the mini gets relegated to second class status.

If they know we will pay equally for equal components, they can risk making a 499 mini and no one has to compromise. They will still have the previous model to discount and the mini will be safe(er) from disappointing updates. Insulated against the withering sales that are killing the other 8in tablets.
 
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