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Old Apr 28, 2013, 09:30 PM   #1
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Apple Considering Lower-Priced iPad Mini at $199-$249?




Along with his recent research note addressing Apple's notebook launch plans, KGI Securities analyst Ming-Chi Kuo has also published a note examining Apple's iPad prospects.

In particular, Kuo looks to the iPad mini as the future of the company's iPad portfolio, but with Apple's efforts to bring a Retina display to the device said to be pushing a launch back to the fourth quarter of this year, he suggests that Apple may be looking at a lower-priced iPad mini.
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Prior to iPad mini 2 launch, Apple might roll out a more affordable iPad mini to compete with Android products. To cut costs, Apple might push for lower component prices, use a more advanced process to produce the A5 processor, simplify metal casing production, remove the rear camera, cut storage to 8GB and find more component suppliers to lower costs. We think this cheaper iPad mini retail for US$199~249.
Kuo does not believe that such a device would offer a significant boost to Apple's overall iPad sales, but it could help stave off erosion at the low end of the market at the hands of cheaper Android-based tablets.

The $199-$249 price range is one that many potential customers had hoped Apple would be able to hit with the original iPad mini, but the company surprised many by introducing the iPad mini starting at $329. Even at that pricing, Apple has noted a number of times that the iPad mini's profit margins are below the company average.

Apple is said to be pursuing a similar strategy for the iPhone, working on a lower-cost iPhone with a polycarbonate shell rumored for launch later this year.

Overall, Kuo sees relatively small sales growth for the iPad in 2013, with the full-size iPad being cannibalized by the popular iPad mini and the upgraded iPad mini with Retina display not debuting until late in the year.

With Android tablets also beginning to gain footholds in some markets and driving Apple's estimated share of the tablet market below 50% in recent quarters, Kuo expects that Apple will remain competitive but see relatively slow growth until the launch of the Retina iPad mini.

Article Link: Apple Considering Lower-Priced iPad Mini at $199-$249?
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Old Apr 28, 2013, 09:32 PM   #2
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iPad sales were up 65% YoY in the 1st quarter, so price apparently isn't an issue.
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Old Apr 28, 2013, 09:33 PM   #3
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i could see the current mini dropping to $229, and the new mini taking over the $329 spot.
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Old Apr 28, 2013, 09:35 PM   #4
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Apple will probably just continue selling the previous generation mini at a reduced price when the new ones are released.
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Old Apr 28, 2013, 09:35 PM   #5
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Originally Posted by siurpeeman View Post
i could see the current mini dropping to $229, and the new mini taking over the $329 spot.
This.
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Old Apr 28, 2013, 09:35 PM   #6
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If it sells for $229 it will be Apple's best selling iPad. Sales of the full size will fall drastically, IMHO. People will buy because of price.
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Old Apr 28, 2013, 09:36 PM   #7
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Overall, Kuo sees relatively small sales growth for the iPad in 2013, with the full-size iPad being cannibalized by the popular iPad mini and the upgraded iPad mini with Retina display not debuting until late in the year
Huh? Did he not see the quarterly results? While iPad Minis definitely ate into the company's profit margins and iPad sales, the device sales were up nearly 66% yoy!
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Old Apr 28, 2013, 09:36 PM   #8
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I'm going to thread crap and ask about the Mac Pros. Hay Ming-Chi, plz2tell us about mac pros. kthx
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Old Apr 28, 2013, 09:36 PM   #9
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For me, cheaper is always preferable (I admit I'm a cheapskate). If the iPad mini sells for $199, I'll be in for a few.
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Old Apr 28, 2013, 09:36 PM   #10
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I think that this would make sense if it also maybe represented an increase in margin.

Make a super price optimized version of the Mini for say $249, and then have the 'premium' retina version at say $349.
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Old Apr 28, 2013, 09:37 PM   #11
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Apple has noted a number of times that the iPad mini's profit margins are below the company average.
Considering most people on here who want a Mini are simply waiting for a retina version, I'm not surprised by this statement.
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Old Apr 28, 2013, 09:37 PM   #12
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If Apple does anything, they might offer a replacement iPad mini with Retina Display and then come out with a standard memory version of the iPad mini and drop the price much like what Apple did with the iPad 2 and iPad 4. That's something I can see. They've recouped their R&D from the first two quarters in sales, and now they can just offer it as their lower cost model. How much? I have no idea, I guess it depends on how much RAM.
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Old Apr 28, 2013, 09:37 PM   #13
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KGI must be really bored.
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Old Apr 28, 2013, 09:38 PM   #14
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There is absolutely no way they would sell an 8GB device again. My sisters's iPhone 4 fills up with the size of iOS alone and like 2 apps.

And I don't think they would take out a rear camera.

The current iPad mini will stick around for a long time at a lower price point....just like the iPad 2.
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Old Apr 28, 2013, 09:40 PM   #15
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I think its far more likely they'd drop the iPod Touch price to $199 before any 7" device hits that price point.
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Old Apr 28, 2013, 09:40 PM   #16
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Retina mini will go for $299 and the old mini for $199-229. That's how I see this going down. This leaves the iPod touch in a weird spot though. I could actually see it dying this year or next. The iPad mini can serve as the gateway drug at this point.
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Old Apr 28, 2013, 09:41 PM   #17
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This makes no sense. This is not something that I see apple doing. No rear camera?? Come on man.
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Old Apr 28, 2013, 09:43 PM   #18
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Originally Posted by alphaod View Post
KGI must be really bored.
With Apple pretty much silent for half the year, I'm not surprised.
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Old Apr 28, 2013, 09:44 PM   #19
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Originally Posted by appleguy123 View Post
Retina mini will go for $299 and the old mini for $199-229. That's how I see this going down. This leaves the iPod touch in a weird spot though. I could actually see it dying this year or next. The iPad mini can serve as the gateway drug at this point.
I would guess retina Mini at the current price of $329 if they can possibly hold that price point. Apple usually doesn't increase the price, they add new features for the same price.
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Old Apr 28, 2013, 09:47 PM   #20
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Lower price = lower margins = lower earnings = lower stock price = more Apple is doomed statements.
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Old Apr 28, 2013, 09:48 PM   #21
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iPad mini (16GB Wi-Fi) = $329

iPad mini 2 (non-Retina display) announced
iPad mini (16GB Wi-Fi) = $229
iPad mini 2 (16GB Wi-Fi) = $329
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Old Apr 28, 2013, 09:48 PM   #22
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So is he basing this on supply chain information or just guessing what he think Apple might do? I'm getting sick of all these analysts brain dumps now being equated to news/rumor.
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Old Apr 28, 2013, 09:50 PM   #23
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In other news, Mercedes is considering a compact econo sedan to compete with Kia and Rolex is considering a line of slap watches.
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Old Apr 28, 2013, 09:52 PM   #24
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Originally Posted by AppleScruff1 View Post
If it sells for $229 it will be Apple's best selling iPad. Sales of the full size will fall drastically, IMHO. People will buy because of price.
I'm convinced that's why they're buying the mini in the first place.
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Old Apr 28, 2013, 09:53 PM   #25
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Originally Posted by AppleScruff1 View Post
If it sells for $229 it will be Apple's best selling iPad. Sales of the full size will fall drastically, IMHO. People will buy because of price.
The iPad Mini at its current prices is already the best selling Mini. This may accelerate those sales, but will change nothing in the overall trend vs. the full sized Mini
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