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There is. It's made by Apple, has the app store, and the Apple ecosystem. That's enough to warrant the premium price tag.

I don't agree. While I agree that the Apple logo is great for what it represents, the ecosystem is excellent, I still don't think a shrunk down iPad 2 with current technology (upgraded over the iPad 2 components) is enough for people to say, "I'll buy the iPad Mini instead of the much cheaper with higher resolution Nook or Kindle Fire HD." This won't be a cheap device.

What I think would be much more exciting and much more interesting would be a higher resolution iPad Mini with retina display that had all the latest technology bells and whistles on it, starting at £349 (I think that's the midpoint between an iPad 3 and iPod Touch entry models??). That to me makes a lot of sense, and that's a device in which I am greatly interested.
 
If the carriers are willing to subsidize more than $300 of the price of an iPhone, and if Apple accepts a $130 upcharge for a cellular data radio, why wouldn't the carriers agree to initially pay Apple $130 so users opting for a contract data plan could get 3G/LTV data transfer capability for the price of a wifi-only tablet?

At $199 there are lots of pre-teens, Kindle users, non-computer-owning iPhone users, women with roomy purses, and older people intimidated by laptops who would buy a mini. A cheap mini could create a second wave of multi-device Apple customers, just as the early iPods did.

LTV speeds in Atlanta top most home wifi right now. As coverage expands, an LTV mini might be a much more attractive feature than retina display or a faster chip, and if the carriers enlightened self-interest motivated them to give away the razors and make it up on the blades, it might work out.

I'd love to see Apple grab years of future market share by capturing entry-level users with a thin-margin training tablet.
 
I would imagine the iPad 2 is going away with the Mini filling it's price point. I would also guess that the Mini is not going to have the all the "flavors" that the regular iPad has (Black/White, WiFi/3G, memory). Two memory levels and one color is my bet.

What about next year in march when the iPad 4 comes out

Are they just going to get rid of the iPad 3? As to not compete with the mini
 
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