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ipad mini -how it makes sense for apple

D

daytraderjo

macrumors newbie
Original poster
Oct 8, 2012
2
0
really, the only way i see this ipad mini making sense from a business standpoint for apple Is to have all sales tied into a cellphone carrier contract to subsidize the cost to 99-149 bucks for an iPad mini. My guess is they will make them all 8GB. With an iPad mini, at lets say 299 with no contract. (probably what it would cost for it to be profitable), why would anyone ever consider a 299 iPod touch? And why would anyone go with the iPad mini at (probably 8gb of storage) vs a 199 kindle fire? Or a 399 iPad 2 with double the storage? The only Way to differentiate this product from the rest, and make this seem attractive for consumers with the same quality product that people expect from apple Is thru cellpphone subsidies.

I have yet to see this idea published, and we''ll see what happens, but in my opinion, an iPad mini has to be as cheap (or cheaper) than competition. (Including your own product line). The competition is fierce with the 199 kindle fire hd. (Which is awesome btw) Apple won't be able to hit that price without taking a loss on the sale. Which unlike amazon, they don't do. I think this would be the only way apple benefits. And I do not think apple is stupid. I think they will do the smart thing if making an iPad mini. Think about it.....an iPad at 99 bucks? One heck of a sales pitch! But With a minimum of 10 dollar a month to add the tablet to your existing data plan of $50" but you are gonna need a bigger data plan, cuz your gonna use this as your GPS instead of ur smartphone since it's bigger, and your gonna buy one for your wife and all your kids, so you get a bigger data plan? This is a home run for Verizon and AT&T..
 
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daytraderjo said:
really, the only way i see this ipad mini making sense from a business standpoint for apple Is to have all sales tied into a cellphone carrier contract to subsidize the cost to 99-149 bucks for an iPad mini. My guess is they will make them all 8GB. With an iPad mini, at lets say 299 with no contract. (probably what it would cost for it to be profitable), why would anyone ever consider a 299 iPod touch? And why would anyone go with the iPad mini at (probably 8gb of storage) vs a 199 kindle fire? Or a 399 iPad 2 with double the storage? The only Way to differentiate this product from the rest, and make this seem attractive for consumers with the same quality product that people expect from apple Is thru cellpphone subsidies.

I have yet to see this idea published, and we''ll see what happens, but in my opinion, an iPad mini has to be as cheap (or cheaper) than competition. (Including your own product line). The competition is fierce with the 199 kindle fire hd. (Which is awesome btw) Apple won't be able to hit that price without taking a loss on the sale. Which unlike amazon, they don't do. I think this would be the only way apple benefits. And I do not think apple is stupid. I think they will do the smart thing if making an iPad mini. Think about it.....an iPad at 99 bucks? One heck of a sales pitch! But With a minimum of 10 dollar a month to add the tablet to your existing data plan of $50" but you are gonna need a bigger data plan, cuz your gonna use this as your GPS instead of ur smartphone since it's bigger, and your gonna buy one for your wife and all your kids, so you get a bigger data plan? This is a home run for Verizon and AT&T..
Click to expand...

Worst. Idea. Ever.
 
The only way to compete with cheap contestants is to make a better built quality (which Apple is known for) and market the iPad mini at slightly more price point than the rest. I think people are willing to pay 50$ up to 100$ more for iDevice when they have to choose between similar 7" tablets. But no more. If I had to choose I'd gladly opt for a 299$ iPad mini than 199$ Kindle or 249$ Nexus 7. Really 299$ is the sweet price point if Apple wants to compete with cheap talbets and at the same time not to affect the sales of 9.7" iPads.
 
I am gonna guess that the iPad mini will have the same internals as the iPad 2 plus whatever they need to give it siri and sell for $250 for 8GB and $350 for 16GB. I also think they will also discontinue the iPad 2 when the mini is introduced.
 
brendu said:
I am gonna guess that the iPad mini will have the same internals as the iPad 2 plus whatever they need to give it siri and sell for $250 for 8GB and $350 for 16GB. I also think they will also discontinue the iPad 2 when the mini is introduced.
Click to expand...
Agreed they'll discountinue iPad 2, but I think prices will be more like this:

8GB for 249$ (or maybe even more aggressively 199$)
16GB for 299$

no 32GB or 64GB models
 
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GoodBoy said:
Agreed they'll discountinue iPad 2, but I think prices will be more like this:

8GB for 249$ (or maybe even more aggressively 199$)
16GB for 299$

no 32GB or 64GB models
Click to expand...

I could see that. Apple wants to dominate the tablet market, the only reason people are buying the cheaper android tablets is because they are CHEAPER. A smaller iPad at $400 won't take out the kindle fire or nexus 7.
 
I just can't understand why people can't get the iPod Touch thing out of their head.

The iPod Touch doesn't make any difference whatsoever.

Apple never had a problem selling the iPhone for more than the iPad. Apple never had a problem selling both devices. And in the end, even if one took sales away from the other, the profit still goes to Apple who wins either way.

Get it thru your head, the iPad and iPod Touch are two completely different devices. As I sit here ready to buy an iPad, I have absolutely no desire to buy an iPod Touch. The same goes for the guy who is looking at an iPod Touch right now.
 
My big issue with the mini is it being based on an iPad2. The iPad 2 cannot have all the ios6 features but suddenly a mini can? Really explain that Apple. And then what about the next two iOS release support? How can they support an iPad 2 based mini and not the 4s? We know how Apple like to strip functions from devices to support an upgrade path.

The mini will at least need a processor and memory spec bump. Also the screen needs a bump. If you have seem the Nexus or Kindle fire the screens blow away the iPad 2. They cannot charge $100 more for an over all inferior product.
 
brendu said:
I am gonna guess that the iPad mini will have the same internals as the iPad 2 plus whatever they need to give it siri and sell for $250 for 8GB and $350 for 16GB. I also think they will also discontinue the iPad 2 when the mini is introduced.
Click to expand...

Yep, and their advertisement will be, "pay more and get less with Apple." A real winner I'm sure that would be. I'm sorry, don't mean to be insulting, but have you seen the specs of the competition? They have superior specs (from what you've suggested) for a much cheaper price. Apple is *not* that arrogant and their value is *not* that great.

brendu said:
I could see that. Apple wants to dominate the tablet market, the only reason people are buying the cheaper android tablets is because they are CHEAPER. A smaller iPad at $400 won't take out the kindle fire or nexus 7.
Click to expand...

Consider a market where people don't buy on price, but buy on size and size alone. Consider these people want a great tablet computer but not one so big as the iPad. Consider they exist, consider one is me. I want a 7" tablet (I have a Kindle) that is superior to all the other 7" tablets out there, but that I'm not worried about price. Imagine that.
 
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WilliamLondon said:
Consider a market where people don't buy on price, but buy on size and size alone. Consider these people want a great tablet computer but not one so big as the iPad. Consider they exist, consider one is me. I want a 7" tablet (I have a Kindle) that is superior to all the other 7" tablets out there, but that I'm not worried about price. Imagine that.
Click to expand...
I totally agree, but all it is it's just a whishful thinking. I also would like the best possible iPad hardware-wise with 7" screen, but it aint gonna happen. I'm being realistic here. Apple will not cannibalize current 9.7" iPad. They can totally abandon 9.7" iPad, but they won't since there's plenty of people who find this size the best. All Apple can do to win the market and not to affect current iPad size sales is to release much cheaper and unfortunately much worse spec-wise iPad mini to compete with the competition. If they wanted to release two identical iPads with same specs only different screen sizes that would bring confusion to the avarage consumer which one to buy. Both iPad form factors have to be different enough in specs and price not to bring those kind of problems that could affect each other's sales and market position.
 
Slamprent said:
That is only speculation.
Click to expand...

Dude, this entire thread, every article from every source and every single discussion about this product is speculation. It doesn't change my point, if Apple is going to charge more than $299 for the device, it has to have equal to or better specs than the Nexus 7 or Kindle Fire HD IMHO. At the very least in screen resolution. Apple hasn't had to compete on ecosystem alone for a while, the devices were always better, this time, they are competing on device not just ecosystem.

If you haven't used a Nexus 7, I suggest people try it, it is pretty amazing, I mean really really amazing for the price.
 
marc11 said:
Dude, this entire thread, every article from every source and every single discussion about this product is speculation.
Click to expand...
I know that, which is why I take issue when someone like you states something as a fact when it most certainly is not. Please, stop spreading misinformation.
 
daytraderjo said:
With an iPad mini, at lets say 299 with no contract. (probably what it would cost for it to be profitable), why would anyone ever consider a 299 iPod touch?
Click to expand...

I don't understand why people keep bringing this up. These are completely different device categories. The iPod is handheld, pocketable, and docks in millions of devices such as clock radios, cars, speakers, and more.
 
WilliamLondon said:
Yep, and their advertisement will be, "pay more and get less with Apple." A real winner I'm sure that would be. I'm sorry, don't mean to be insulting, but have you seen the specs of the competition? They have superior specs (from what you've suggested) for a much cheaper price. Apple is *not* that arrogant and their value is *not* that great.



Consider a market where people don't buy on price, but buy on size and size alone. Consider these people want a great tablet computer but not one so big as the iPad. Consider they exist, consider one is me. I want a 7" tablet (I have a Kindle) that is superior to all the other 7" tablets out there, but that I'm not worried about price. Imagine that.
Click to expand...

Okay sure, there are people who really do prefer a 7" tablet. I still believe most people who own a kindle fire or a Nexus 7 either hate Apple and will never buy an iPad (regardless of size), or bought the tablet they did because it was in their price range. Also, regarding pay more, get less - Apple has been doing that for years with their products. It is the whole package of hardware and software that make Apple products appealing. Their products almost always look to be less capable on paper, that doesn't mean they are.

I was guessing before and I am still guessing now. Could Apple release the iPad Mini at $400 and have people buy it? Sure. Could they sell the iPad 2 hardware with a smaller screen and some minor improvements at $250 and sell even more? I think so. But I am not in sales or marketing and the guys at Apple know what they are doing. In a couple weeks we might find out.
 
marc11 said:
If you haven't used a Nexus 7, I suggest people try it, it is pretty amazing, I mean really really amazing for the price.
Click to expand...

If someone is an established iOS user, it would be the height of insanity to consider a Nexus 7 right now, with the iPad Mini announcement imminent and prices unknown.
 
Slamprent said:
I know that, which is why I take issue when someone like you states something as a fact when it most certainly is not. Please, stop spreading misinformation.
Click to expand...

Really, I said it was a matter of fact? Really and that offended you personally? Really? Come on man, this is a discussion forum, do not get your panties in a wad over casual speculation and conversation. It isn't worth the stress.

----------
ActionableMango said:
If someone is an established iOS user, it would be the height of insanity to consider a Nexus 7 right now, with the iPad Mini announcement imminent and prices unknown.
Click to expand...

I agree that is what makes it hard to consider the Nexus 7, but I started to think what I use my various Apple devices for compared to what I would use a 7 inch tablet for. For me, it is book reading, general surfing when not near my computer, GPS, email and a few apps and music. Not any of my itunes tv/movie media. In that case the move isn't so hard, but yes a serious consideration none the less.
 
Ipad mini already won when Amazon says u have to pay another $15 to remove the annoying-ads. Waaaaa?

Kindle Review: Is basically a reader and video viewer, designed as a shopping front door to Amazon.

Sure iPad is a front door for iTunes but Apple is --not yet-- so blatant about it.
 
Mrbobb said:
Ipad mini already won when Amazon says u have to pay another $15 to remove the annoying-ads. Waaaaa?

Kindle Review: Is basically a reader and video viewer, designed as a shopping front door to Amazon.

Sure iPad is a front door for iTunes but Apple is --not yet-- so blatant about it.
Click to expand...

Amazon makes its money from content, Apple provides content for its users, but it's not a profit center.
 
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