Technology is getting cheaper. They priced the mini way to high to start with. Now they are looking for cheaper iphones and ipads (the meat and potatoes of their lineup) Because if you look at things like the galaxy 7 tab for $150-$180 it does just fine for half the price.
Yes but the margins on the Galaxy 7 are MUCH slimmer too. That's my point. Apple can't make a less expensive mini w/o compromising quality or margins. And neither would be a plus for Apple.
Samsung is a huge conglomerate so it can afford to have slim margins in one category and make it up in another. Samsung appliances for example can get very expensive. Apple is a smaller company with a small product lineup that survives on fat margins. It can't afford to have loss leaders like Samsung.
Also, remember Android is open source. Samsung has to spend minimal R&D on the OS, unlike Apple. That cost is priced into iOS devices.
And again, I'm not sure how you can say with a straight face that Apple priced the mini too high to start with if they sold 12 MILLION units just in the last 3 months of 2012. Logically, you cannot. Another 15 MILLION sold in Q2, and estimated 12 MILLION more this quarter even with the expectation of a refresh coming soon.
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I mean, who would want to buy a Ferrari for $200,000 when there is a 'less expensive' Ferrari that does the same thing, the same way, with the same features for $50,000?
Not sure I understand your analogy here. You don't seem to understand the psyche of a Ferrari buyer. They aren't looking for value, they are looking to impress someone be it their neighbor, friend, client, girlfriend, or him/herself
😉. Ferrari could make two models that are similar, one being much less expensive, but those buyers are trading off the model name as much as anything else.
Also I wouldn't quite put Apple up there with Ferrari. Very few people can afford one & they are for the most part custom made cars. Apple products are luxury items, but still mass market. They are more like a 3 series BMW, C class Merc, or A5 Audi.