Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
With the Nexus 7 priced at $259 (here in Canada), I'm really curious to see what apple will do with pricing. I really cant see how they could expect to sell it for more than $299.

My guess is $349 and not a penny less.

----------

Which platform made the bigger jump than 4S->5 in hardware? The only one I know is Windows Phone 8 but that's only because Windows Phone 7 didn't support latest hardware.

Exactly. The iPhone 5 was a MASSIVE leap from the 4s in every way imaginable.
 
With a small iPad I could lay on the sofa and read my ebooks of interest by holding the iPad mini with one hand like I can do with a paperback.

Sounds like an overly energetic way to read ebooks, not to mention rude towards your partner, unless you really meant 'lie on the sofa'.

And if you did mean 'lay' then TMI. ;)
 
People want a new iPad mini that is near identical to the new iPad (retina display, up to 64gb, 3G / 4G options) or improved upon the new ipad (an A6 chip) and yet despite the fact they want it to contain almost all the same specs assume Apple could feasibly push it out for $249-299 ? When the 32GB iPod Touch starts at $299 (€329)... I mean seriously?

If anything a basic 16gb iPad mini with non retina, and an A5 chip will be at least $329-349

If it contains anything like a retina display a 16gb will be $429-449




On separate note :- Recent leaks with 2 SKU / iPad product iD's in iOS 6


Given that only two product SKU's have slipped into the wild hidden inside the iOS updates, there is an indication that two models with fixed storage may indeed made available. Folks have assumed the recent discovery of iPad 3 SKU meant a revised 9.7" new iPad, but fail to see that if that was the case there would be multiple SKU's / product iD's to accommodate the varying hardware storage and cellular options in the current new iPad (16/32/64 wifi 16/32/64 4g) and not just the one.


So we have two solitary iPad SKU's one based on iPad 2 product iD, and another on iPad 3 iD. Both indicating that whatever releases will have 1 storage size, presumably 16GB, and will be Wifi only.

So yes the iPad 3 SKU could mean a retina version of the iPad mini based on new iPad specs, but certainly it will be far closer to the new iPad in price than people seem to hope for.
 
Again, I'm not an econ guy but there's also the concept of volume. How much does Apple make per song DL from iTunes? And how many songs from iTunes are DL daily? Low margin sales can add up quickly. Then add on iBooks, movies, etc. No packaging, no shipping, just pure profit. A little bit different from selling printer/cartridge, console/game and razor/blades which still require you make something, package it, and ship it somewhere.
Volume has nothing to do with margin. You cannot lose money on each sale and make it up on volume. Similarly you cannot make 2% profit on every item you sell, make more than 2% profit at the end of the year. Besides, it is common knowledge that Amazon was charging less than the wholesale price for ebook bestsellers (before agency pricing came along). In other words, Amazon is not making money on Kindles and it was losing money on ebooks.

Digital sales is not pure profit. Stores only get a percentage of sales and then they have to spend money on servers, electricity, bandwidth, credit card fees etc. If Amazon is just breaking even on a Kindle tablet at $200, it needs to sell hundreds of songs over the next two years to that same customer just to make a modest 10% profit. (There is also the development costs for the tablet, in addition to the cost of building and shipping.)
 
If we get a device with iPad 2 specs and its priced $50-$100 more than Fire HD or Nexus 7 I think it will be a fail. I can't see Apple pricing it at $199 since hardware is where they make their money )Bezos just recently confirmed that Amazon basically sells the Kindles at cost). But since it will most likely be more expensive it needs to have better specs/features IMO.

Apple probably is THE low cost producer of them all. They use their cash to buy the parts they need at a scale and cost their competitors can only dream about.
 
Last edited:
Volume has nothing to do with margin. You cannot lose money on each sale and make it up on volume. Similarly you cannot make 2% profit on every item you sell, make more than 2% profit at the end of the year. Besides, it is common knowledge that Amazon was charging less than the wholesale price for ebook bestsellers (before agency pricing came along). In other words, Amazon is not making money on Kindles and it was losing money on ebooks.

Digital sales is not pure profit. Stores only get a percentage of sales and then they have to spend money on servers, electricity, bandwidth, credit card fees etc. If Amazon is just breaking even on a Kindle tablet at $200, it needs to sell hundreds of songs over the next two years to that same customer just to make a modest 10% profit. (There is also the development costs for the tablet, in addition to the cost of building and shipping.)

Apple and Amazon have completely different business models but I'm still trying to figure out where Amazon make profit because I can't imagine there's much profit in selling books, music and video. What's iTunes profit? Wasn't that basically a break even business for many years?
 
Yes - for songs at 99c it was and is, I think. But Amazon's content is higher-priced so presumably more profitable.

I mean, if it wasn't they would sell it at those prices, right?
 
Do you think it's because of size or price? Personally I think it more due to price. Ditto for the Kindle Fire.

Probably a bit of both. There are plenty of low cost 10" Android tabs like the Galaxy Tab 2 that are not selling as well as the Nexus 7 or iPad 2 or "new" iPad. I think one could fairly conclude some buyers mostly like the size, and others the price. Either way it suggests there is demand for a less expensive 7" mini iPad.

----------

Yes - for songs at 99c it was and is, I think. But Amazon's content is higher-priced so presumably more profitable.

I mean, if it wasn't they would sell it at those prices, right?

I'm confused by this statement. Amazon MP3s are less expensive than iTunes, and most movies too. For example renting Prometheus in HD on Amazon is $4.99, but $1 more on iTunes.

Also Amazon offers a huge library of free rentals to Prime members.
 
Oh, "Yep" there.
So this small iPad should be out that day.
Now my only interest is what the name it is.
(Holding a new iPad. So no interest.)
 
Apple and Amazon have completely different business models but I'm still trying to figure out where Amazon make profit because I can't imagine there's much profit in selling books, music and video. What's iTunes profit? Wasn't that basically a break even business for many years?
Out of almost $13 billion of revenue, Amazon made $7 million of profit during the last quarter. It is run like a charity at this point. :)
 
It's not personal, it's just business. What were you expecting a "kumbaya" moment? Apple and Microsoft are competitors. Of course each is going to do what they can to soften blows of each other's products. Amazon and Google too. It would be negligent if they didn't when the opportunity arose.

Actually not really. I'm just saying Apple usually walks to their own drum beat regardless of what their competitor's are releasing. Seems like this is a shift for them. Apple's usual mentality is "we'll release the ipad mini whenever we damn well feel like it because we know everyone's gonna want one no matter what".

Now it's more like "we'll be sure to target the release of the ipad mini right before this windows 8 launch to upstage them".

Just saying... not a usual business practice of apple's. Maybe post-Jobs mentality.
 
I think there is a market for a high end mini. Maybe if the form factor is popular, the next one will get Retina etc.
 
With the Nexus 7 priced at $259 (here in Canada), I'm really curious to see what apple will do with pricing. I really cant see how they could expect to sell it for more than $299.

The new iPod starts at $299. They are not going to step on the new iPod by pricing the same as the iPad Mini. I'm guessing they will start at $399. Maybe possibility of $349. Nothing lower without crushing iPod sales.
 
I'm not sure about the iMacs .. I mean might as well wait till April – May next year for Haswell or whatever it's called.
 
Probably a bit of both. There are plenty of low cost 10" Android tabs like the Galaxy Tab 2 that are not selling as well as the Nexus 7 or iPad 2 or "new" iPad. I think one could fairly conclude some buyers mostly like the size, and others the price. Either way it suggests there is demand for a less expensive 7" mini iPad.

----------



I'm confused by this statement. Amazon MP3s are less expensive than iTunes, and most movies too. For example renting Prometheus in HD on Amazon is $4.99, but $1 more on iTunes.

Also Amazon offers a huge library of free rentals to Prime members.

Then I stand corrected. But Prime isn't free, is it?
 
The new iPod starts at $299. They are not going to step on the new iPod by pricing the same as the iPad Mini. I'm guessing they will start at $399. Maybe possibility of $349. Nothing lower without crushing iPod sales.

No, it will be either $249 or $299, and for Apple that still has quite a bit of profit. They are currently selling the iPad 2 at 16 GB for $399. They can't sell the Mini iPad which is iPad 2, shrunk to a smaller size for the same price, that would be silly. The iPhone 5 is $199 in parts (according to iSuppli), The iPad mini will be much less in parts, screen is cheaper, case is cheaper, processor is cheaper, Dram is cheaper, camera is cheaper, doesnt need the cell phone radios, probably even the battery is cheaper. Sell it at $249 or even $299 and they will sell like hotcakes, and make lots of money for Apple. Cost more and why would you get it vs the Ipad 2 which has a bigger screen, especially with your pricing at the same price. At the same price, 10" screen or 7" screen really think alot are going to pick the small one?
 
So, why is it ok to have two different size iPads but making the iPhone in different sizes is considered blastphemy?

Theyve been talking about this stupid mini iPad forever. Wonder if itll be priced to compete with the Nexus 7.
 
No, it will be either $249 or $299, and for Apple that still has quite a bit of profit. They are currently selling the iPad 2 at 16 GB for $399. They can't sell the Mini iPad which is iPad 2, shrunk to a smaller size for the same price, that would be silly. The iPhone 5 is $199 in parts (according to iSuppli), The iPad mini will be much less in parts, screen is cheaper, case is cheaper, processor is cheaper, Dram is cheaper, camera is cheaper, doesnt need the cell phone radios, probably even the battery is cheaper. Sell it at $249 or even $299 and they will sell like hotcakes, and make lots of money for Apple. Cost more and why would you get it vs the Ipad 2 which has a bigger screen, especially with your pricing at the same price. At the same price, 10" screen or 7" screen really think alot are going to pick the small one?

What about the new iPod Touch that sells for $299? Will they price the bigger iPad Mini cheaper than the new iPod Touch? It will be interesting to see what the price will be. More interesting are the how's and why's. ;)
 
What about the new iPod Touch that sells for $299? Will they price the bigger iPad Mini cheaper than the new iPod Touch? It will be interesting to see what the price will be. More interesting are the how's and why's. ;)

I know everyone wants to compare it to the Ipod Touch, but the Ipod Touch costs more to make. The $299 Ipod touch has a more expensive screen, more expensive body, more expensive camera and probably twice as much Flash (32 GB vs 16 GB), so it should be more expensive. Its going to be the same price or a little more then the 16 GB Ipod Touch, which given that even that Ipod Touch has a better screen, isn't that surprising.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.