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Now that I own an iPad (3rd gen) I can say that I would give serious consideration to an iPad Mini. I would be looking at overall size (including thickness), weight, battery life, and if I could be comfortable with a smaller display area. A lower cost is also attractive.

I think performance would be similar if not identical, given that the bulk of the iPad 3's innards is comprised of battery cells and not processors -- I'm betting the same computing "guts" could carry over to a 7" Mini.

If Apple can create a great Mini, I may well be selling my iPad 3 on eBay come next year.
 
Neither of those applies. The only factor to consider is reality.

(1) Reality requires Apple to be able to manufacture and market a smaller device at a cost that will realistically allow for an acceptable profit. Nobody currently selling a 7" device is selling at a profitable price point - they're doing it because competing at the 10" level is exceptionally risky so capturing the low-end is an acceptable alternative. Apple will never, ever be a competitor in that price range.
(2) If Apple does release a smaller iPad it will be in the $349+ range. Dropping below that level will cut margins to an unworkable level and will draw sales from the iPad 2 and the new iPad.

If any company can figure out a way to do this, it's Apple. I'm still not convinced that an iPad Mini exists, but we'll just have to see.
 
(2) If Apple does release a smaller iPad it will be in the $349+ range. Dropping below that level will cut margins to an unworkable level and will draw sales from the iPad 2 and the new iPad.

Doubtful. You cannot glean anything useful from the price of the Galazy Nexus 7. Google is a web company that doesn't have or know how to manage a world class supply chain. Apple has arguably the best supply chain in the world.

Google contracts ASUS to develop their tablet. Apple designs the product and has Foxconn build the tablet.

Apple will go large if they decide to enter the small iPad market and they will make money at pricing that others cannot. People will pay a premium for an iPad an at $299 or an 8 or 16GB iPad mini the units will fly off the shelves.
 
Apple has arguably the best supply chain in the world.

Which is why they can keep their pricing at current levels. There's no more money to be squeezed. Apple is expected to hit the 100 million iPads sold mark by year-end. Do you think that going to 105 or 110 million is really going to get them some more extraordinary pricing than they already have?
 
I don't care if it comes out. But an A4 iPad should have priority.
 
But what is the difference? I love my iPad but it is in essence a giant iPod touch.
It is, but there is a subtle difference.

A big iPod touch would run apps designed for a 3.5" screen at a larger size which wouldn't make us of the extra space, it wouldn't sacrifice usability.

A small iPad would run apps designed for a 9.7" screen at a smaller size which could sacrifice usability.

A third option would be that developers have to start making their apps distinguish between the different devices and actively supporting three different resolutions - in which case it wouldn't matter what you called it because it would be something new.
 
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