this is an interesting thread. Why is the smaller line news worthy? Before the launch, analyst expected Apple will sell 50M iphone and 5-8m Ipad mini in 4Q. In 3Q12, Apple sell 14M ipad 2+Ipad 3 and 26.9m Iphone. So of course the line will be shorter.
As for retina display fans, are you sure you know what you want? Ipad 4 is about 1.44lb and Ipad mini is about 3/4 size of the Ipad 4. So a retina display at IPad 4 resolution of 2048x1536 Ipad min probably will weight about 1.08 lb (Ipad mini weight 0.68 lb), about 58% more than Ipad mini. And then who is going to pay for the cost of the extra set of led back light (Ipad 3/4 use 2 set of LED backlight) and the bigger battery pack (because of the extra set of LED back light). So an Ipad mini with retina display at Ipad 4 resolution will probably weight 58% more + may be $80 more.. Anyone still interest in a device like that?
Apple can get to retina spec on Ipad mini without going to 2048x1536 because of the smaller size (much like Nexus 7), but it introduces screen layout problem to all the tablet app in existence. A new resolution will force all the existing app to update the design and who know the schedule of when will they be done. So we end up a device that is just like Android tablet, a tablet with much better spec but terrible app experience. Is that what you want? I know I don't.
Ipad mini is not a flagship device. It is a entry level device that is much more mobile than the flagship Ipad 4. It cost lower and you can use it with one hand. If you are not willing to pay for the flagship price, you shouldn't compare it to the flagship features. Comparing to Nexus 7 or Amazon Fire HD is a fair game. But there is a reason that Google and Amazon priced their tablet with such a low price. It is an indication that the demand for their product is weak at higher price point. Asking for a lower price Ipad mini is like saying I want a steak but I am only willing to pay a hamburg price. Of course, you are going to be disappointed. Ipad mini is going to be the lowest margin product in the current Apple product line up. They discussed this in Apple earning conference call a week or so ago. Ipad 2 and Ipad 3 has 23 to 32% gross margin. After paying tax, design cost, distribution cost and pay tax, Apple at best make 10-12% on each Ipad 2 and Ipad 3. The base Ipad mini gross margin is going to be in the high teen and Apple probably make 3-5% profit after all the expense. The only way Apple can make money on Ipad mini is customer buy a lot of the high end model (the 32g, 64G or the one with wifi). The high end model will have a much better gross margin. Nexus 7 and Kindle Fire HD loss money for Google and Amazon. Google make up the loss by the search revenue (Google pay Apple to be used as the default search engine in IOS device but no fee to anyone for Android device). Amzn make it up when people spend money on their site and they sold the default search engine right to Microsoft.
http://www.morningstar.com/earnings/earnings-call-transcript.aspx?t=AAPL&pindex=2
I have an Ipad 3 and I am serious thinking about getting an Ipad mini for traveling and around town (e.g. use it as a nav). It is a different device than Iapd 3 because of the weight and size issue.