Apple Considering Lower-Priced iPad Mini at $199-$249?

Discussion in ' News Discussion' started by MacRumors, Apr 28, 2013.

  1. macrumors bot


    Apr 12, 2001

    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.
    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?
  2. macrumors 68000


    Aug 11, 2003
    iPad sales were up 65% YoY in the 1st quarter, so price apparently isn't an issue.
  3. macrumors 603


    Dec 2, 2006
    the OC
    i could see the current mini dropping to $229, and the new mini taking over the $329 spot.
  4. macrumors newbie

    Sep 5, 2010
    Apple will probably just continue selling the previous generation mini at a reduced price when the new ones are released.
  5. macrumors regular

    Jun 20, 2009
  6. macrumors G3


    Feb 10, 2011
    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.
  7. macrumors 6502

    Jun 5, 2006
    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!
  8. macrumors 6502

    Apr 26, 2011
    I'm going to thread crap and ask about the Mac Pros. Hay Ming-Chi, plz2tell us about mac pros. kthx
  9. macrumors 65816


    Nov 2, 2008
    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. :D
  10. macrumors 68040

    Feb 6, 2009
    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.
  11. macrumors 6502


    Oct 12, 2011
    New Zealand
    Considering most people on here who want a Mini are simply waiting for a retina version, I'm not surprised by this statement.
  12. macrumors regular

    Feb 12, 2006
    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.
  13. macrumors Core


    Feb 9, 2008
    San Jose (CA)
  14. macrumors member

    Jun 13, 2012
    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.
  15. macrumors 68000


    Jul 25, 2008
    Wichita KS
    I think its far more likely they'd drop the iPod Touch price to $199 before any 7" device hits that price point.
  16. macrumors 603


    Apr 1, 2009
    15 minutes in the future
    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.
  17. macrumors 68000

    Apr 23, 2009
    This makes no sense. This is not something that I see apple doing. No rear camera?? Come on man.
  18. macrumors 68040


    Feb 12, 2010
    With Apple pretty much silent for half the year, I'm not surprised.
  19. macrumors G3


    Feb 10, 2011
    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.
  20. macrumors 601


    Feb 22, 2003
    New Hampshire
    Lower price = lower margins = lower earnings = lower stock price = more Apple is doomed statements.
  21. Guest

    Dec 7, 2010
    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
  22. macrumors G5


    Nov 14, 2011
    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. :rolleyes:
  23. macrumors member

    Feb 4, 2003
    Concord, NC
    In other news, Mercedes is considering a compact econo sedan to compete with Kia and Rolex is considering a line of slap watches.
  24. macrumors 68030


    Dec 30, 2009
    I'm convinced that's why they're buying the mini in the first place.
  25. macrumors 6502

    Dec 29, 2003
    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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