This isn't a matter of fragmentation. They didn't blink an eye when they changed the iPhone 5's resolution, I can't see them holding back with the iPad Mini. It's a matter of money. A Retina Display would have eaten into their bottom line and a lack of RD also provides a reason to have people upgrade a year from now...when they do offer a RD on the iPad mini. And they will.
Exactly. This year, Phil Schiller sold it as an advantage that all existing iOS apps run on the iPad Mini because it has the same 1024x768 pixel resolution as the original iPad and the iPad 2. Next year, Phil Schiller will proudly announce that they have finally phased out the 1024x768 resolution because every iOS gadget will then have a retina display. And he will not mention that there are thousands of apps out there that have been designed for 1024x768 and are only upscaled on the retina displays. That won't sell well.
And the retina display and maybe a slightly faster CPU and GPU will probably be the only differences between next year's "new" iPad Mini and the one they introduced yesterday. And in two years, they will completely drop the support for this year's model, just like they dropped the support for the original iPad. It's their typical planned obsolescence business model.
But what I really, really find humorous is that they say that the iPad Mini has the perfect display size and that you can use it with one hand -- and that all of a sudden, everybody here buys into that.
Do you guys remember when you said that a Galaxy Note is way to big and that you cannot use it with one hand? And the Note only has a 5" screen, and you found that too unwieldy. But now a 7.something" device is perfectly fine for one handed use. Wow. Just wow.
I also remember when Steve Jobs said that tablets with a smaller size than the original iPad would not make any sense and would be unusable. And even back then I wondered if he really believes that, how can he sell an iPod Touch with a 3.5" screen? If he were still alive, he would probably go all Konrad Adenauer on us: (in free translation) "I don't care about the nonsense I said yesterday."
The price of the iPad Mini is also too high for a 7" device. It's 1.5 times more expensive than a Kindle Fire or a Nexus 7. Google is going to introduce a set of new devices by next week and in several countries the Nexus 7 has already receives a silent upgrade in which they doubled the RAM of the device and sold it for the same price.
Oh, and the photo. It looks --exactly-- the like product photo that Samsung used when they introduced the Galaxy Note. So Apple is now going copycat on who they say is a copycat? If it weren't so pathetic, it would almost be ironic.