Tim Cook: iPad Mini Priced 'Aggressively'

MacRumors · Oct 25, 2012

During Apple's fourth quarter earnings call today, CEO Tim Cook explained the company's pricing philosophy for the iPad mini in some detail. The following is a portion of our rough transcript:

When we set out to build it, we didn't set out to build a small, cheap tablet. We set out to build a smaller iPad that offered the full iPad experience. The difference between us and the competition is profound. 35% larger screen than 7" tablets. 2 great cameras. Fastest communications with dual bank Wi-Fi. Fit and finish of our precision enclosure is breathtaking when held in your hands. That's what we've done, the iPad mini has higher costs and gross margin is significantly below our corporate average. Height of the cost curve, but we want to make a large number and we're going to work to try to get down the cost curve and get more efficient with manufacturing as we've done with our other products.

One of the things we try to do is to create a product that people will love for months and years and continue using. That's what iPad Mini is designed to do. You can see that more broadly on iPad by looking at the usage statistics. Over 90% of web traffic from tablets is from iPads. Apple will not make a product that somebody may feel good about for the moment, but then won't use when they get home. That's not the experience we want our customers to have. I would encourage you to use an iPad mini and I don't think you'd be using anything other than an iPad once you do that.

Article Link: Tim Cook: iPad Mini Priced 'Aggressively'

dukebound85 · Oct 25, 2012

I disagree Timmy boy

But I expect nothing less than you to defend your company's price points regardless.

Ballis · Oct 25, 2012

Just not sure why anyone would get one. Its just to easy to justify the premium of the 4th gen regular sized one.

impulse462 · Oct 25, 2012

I feel like the 2nd or 3rd generation of this product will be worth getting, but as it is right now, I'm not sure if its worth 329. Maybe for some people, but not me.

They're definitely gonna put a retina display next year.

FlameofAnor · Oct 25, 2012

A bit surprised by the defensive tone.

A simple, "unlike our competitors, we don't make crap", should've been sufficient.

Kissaragi · Oct 25, 2012

He could have been a bit more aggressive....

CasinoOwl · Oct 25, 2012

I've read a lot of quibbling that this is priced $30 too high. In a market where people are paying that for adapters, I think the iPad Mini will do just fine.

FlameofAnor · Oct 25, 2012

Ballis said:
Just not sure why one would get this over iPad 4

Are you unable to see the differences between the two versions, or are you just unable to imagine other people having different requirements that you?

Icaras · Oct 25, 2012

Ballis said:
Just not sure why one would get this over iPad 4

Then you should read up on the iPad forum some more.

neiltc13 · Oct 25, 2012

The problem is that the only reason someone would buy this product over iPad 4 is price, but the price is not that much lower.

Who is the person who can afford the $329 for this but can't afford the extra $170 to get iPad 4?

3goldens · Oct 25, 2012

I agree Mr. Cook!

It's so obvious to most people who understand the dynamics here. Then there are the ever present and constant whiners out there. who never seem satisfied with anything and would rather just complain. Even before the product is released!

This is going to be a terrific product and I can't wait to get my hands on one! I will also be upgrading my iPad 3 to the new one.

To the detractors, go get an android device, see how you like that! We'll miss ya and sooner or later you will see the difference in experience!

GREEN4U · Oct 25, 2012

The only nice thing about the iPad mini over the iPad is the diamond cut chamfered edge and slate color on the back, a la iphone 5. But that's not worth $329 in it of itself.

appleguy123 · Oct 25, 2012

Now let's see him defend the new 13" Retina MacBook Pro!

AndyR · Oct 25, 2012

In New Zealand there is only a $50 different between the 16Gb iPad Mini and the 16Gb Nexus 7.

CWallace · Oct 25, 2012

neiltc13 said:
The problem is that the only reason someone would buy this product over iPad 4 is price, but the price is not that much lower.

If every iPad owner wanted a 9.7" device, there would have been no market (or market clamor) to offer a 7.9" device.

And since the Mini has the same display resolution as the iPad 2, again, they would have bought the iPad 2 and saved $100 if all they cared about was price and always wanted a 9.7" device.

dukebound85 · Oct 25, 2012

neiltc13 said:
The problem is that the only reason someone would buy this product over iPad 4 is price, but the price is not that much lower.

Who is the person who can afford the $329 for this but can't afford the extra $170 to get iPad 4?

170 is more than a 50% increase......

iGuardian · Oct 25, 2012

Ballis said:
Just not sure why anyone would get one. Its just to easy to justify the premium of the 4th gen regular sized one.

neiltc13 said:
The problem is that the only reason someone would buy this product over iPad 4 is price, but the price is not that much lower.

Who is the person who can afford the $329 for this but can't afford the extra $170 to get iPad 4?

The smaller and lighter form factor is a big deal for a lot of people. Ever tried reading a novel on the bus with an iPad 2? Not a pleasant experience.

Ludatyk · Oct 25, 2012

Of course he's going to defend there price just as Phil did. Compared to the competion there products is "always" better.

But honestly, the competition has gotten better... From the Surface to the upcoming Nexus 10. A 329$ iPad Mini without retina screen is not worth it.. IMO

FlameofAnor · Oct 25, 2012

neiltc13 said:
The problem is that the only reason someone would buy this product over iPad 4 is price, but the price is not that much lower.

Who is the person who can afford the $329 for this but can't afford the extra $170 to get iPad 4?

Really?...... you can get the 64GB Mini for $30 more than the 16GB retina iPad. That's not a small difference. Not everyone needs the retina display, no matter how nice it may be. They still sell plenty of the iPad 2.

There are also many people who didn't buy the iPad do to it's size and weight. They wanted something more portable. The iPad Mini fits that bill.

CH34P3T · Oct 25, 2012

Priced aggressively? LOL

Big Bone · Oct 25, 2012

"we're going to work to try to get down the cost curve"

How about they start with selling the ones with more memory cheaper. It's preposterous the amount they charge for a 16 gb increase when it only costs them a few bucks more. That is a greedy attempt at ripping off their customers and puts a bad taste in my mouth concerning Apple products.

Jetson · Oct 25, 2012

Yes, the iPad Mini is a beautiful device.

I still won't buy one until it's upgraded with a retina display and A6X processor.

After all, if the smaller iPod Touch can benefit from the premier display and the iPhone 5 from the more powerful chip, why not the iPad Mini?

stevemiller · Oct 25, 2012

I laugh at the quote of apple saying they want to make products that aren't just appealing in the moment, meanwhile we have articles here describing how droves of people rush to ditch their previous generation device when a new one comes out, even if only a few months have passed.

orfeas0 · Oct 25, 2012

neiltc13 said:
The problem is that the only reason someone would buy this product over iPad 4 is price, but the price is not that much lower.

Who is the person who can afford the $329 for this but can't afford the extra $170 to get iPad 4?

No it's not just the price, it's the size too.
Not everyone wants a 10" tablet. Whether you like or believe it, some people actually like 7" (this is even 8") tablets.

The only problem is the screen...
The mini's main purpose is reading/browsing, and I don't know if it's worth it without a retina display. I mean the new iPad is amazing and you can't even see the pixels, great for reading.

mixel · Oct 25, 2012

Loads of people will buy this over ipad4 because of size alone.

It's mad how so many forum posters are obsessed with specs to the extent they forget about practical day to day considerations.

Tim Cook: iPad Mini Priced 'Aggressively'

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