So you REALLY believe Apple are going to launch a 7.85" tablet with a screen resolution of 1024 x 768 at a price of $245.
May I just point out the new iPod Touch with A5 SOC and a 4" screen with a resolution of 1136 X 640 costs FROM $299 for 32GB plus tax.
IF a iPad mini ever turns up, which it won't, it will easily cost from $299 at least for a 16GB model.
I think you all need to realise Apple has shown it's hand, it will not be launching a cheap iPad mini, it cannot price it to compete. If anything I believe Apple will only make more expensive iPads maybe that match the ModBook pro idea.
Also it would be a joke to launch a tablet with a lower resolution then any other 7" on the market and even more so when your company is known for high res screens.
Not at all - Apple can beat anyone on pricing. Apple's got speed and scale in its business that none of the Android OEMs can match; not to mention that enormous war-chest (think strategic investments in suppliers, advance components purchases), and the confidence that they can make that money back by selling boatloads of units.
The only company Apple will find it hard to beat on price is Google themselves, who push devices out there at zero-margin just to spread Android. By comparison, (I don't know what their targets are now, but) Apple used to target a 100% margin.
It's not a risk-free strategy; none of the Nexus devices have managed to gather comparable attention to the iPhone or even other Android devices like the SGS3, for one. That's despite them costing about half the price and being sold off-contract. Will the Nexus devices ever really get any mass-market appeal? If the Nexus 7 doesn't (and, even though it's also been getting great reviews for costing half the price and being sold off-contract, I've never seen anyone with one. I've seen plenty of iPad 3's around (launched close to the same time) and even a couple of iPhone 5's already.
Then there's the risk that you shortcut the race-to-the-bottom. Consumers buy and love your $199 tablet. Great, now what? You're not making a bean on any one of them, and now you've set expectations for price so low that all your partners offering seem overpriced. They have to shave their margins razor-thin to match. How do they innovate with pennies coming through the door?
No Android OEMs are going to follow Google's lead on pricing. There may be a decent $199 tablet market one day, but it's not today.
Apple doesn't play in that market. As I mentioned above, Apple can still sell loads of tablets even with a $199 Nexus 7 in the market. Google want Apple to try and compete on price, because they know it would be a business disaster for them that they can't afford. Apple aren't scared by the Nexus 7; they might be concerned if all the other OEMs seemed able to match that quality for that price, but that's not happening.
EDIT: What I'm trying to say in other words is that the Nexus 7 is
under-priced. Apple may very well be looking at a smaller, cheaper iPad. But I doubt it has anything to do with any competitive threat from the Nexus 7. Google aren't shifting iPad-like numbers of them, and they wouldn't directly make any profit even if they did.