Yes and the touch went away because its not enough space for the device, so why would you make a device that needs more space (a tablet) with that little of space.
Because everyone that says they are doing 4 memory sizes is listing $100 differentials between each one. Its a pretty big ripoff to be paying $100 to go from 16 GB to 32 GB, its not a great deal to go from 32 GB to 64 GB and pay $100, but its absolute theft to pay $100 to go from 8 GB to 16 GB. And the press knows that, and they will talk about that ALOT. Instead of how nice the iPad Mini is, it will be all about the largest user of Flash in the world, selling 8 GB for $100, that really shouldn't be Tim's goal.
Dude eventually the 8gb Touch low end model becomes 16gb. The 2gb RAM low end MBA model gets 4gb. The 512mb low end Macbook eventually gets 1gb memory. The integrated graphics in the low end iMac becomes a dedicated gpu. And eventually the 64gb SSD in the low end MBA will become a 128gb SSD.
So the point the Touch is now 16gb and not 8gb is moot. IT will happen eventually as it always happens with computer tech. btw, note the low end Touch is still a few generations old.
Apple has a target profit margin. The low end models are below that margin and the higher end models are above that margin. That's the reason they overcharge for more storage or RAM etc. They make less than they want to on low end models and make it up by making more on high end models.
No one is arguing that any of this is desirable. But Apple does it. They will skimp on their low end models. Part of that is so they can reach those price points for consumers who absolutely won't pay more.
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Apple is paying $10 for 16 GB of Flash for the iPhone 5, how exactly do you think the price difference is higher then $5 going from 8 GB to 16 GB, there isnt alot of room there, and as discussed earlier, $5 is not alot of the profit. The iPhone 5 costs $199 in parts (plus $8 in assembly), it has a more expensive screen, case, processor, twice as much ram, the cell module, a more expensive battery, which means the iPad Mini at 16 GB will be significantly cheaper then $199, in fact it reduces its cost to under $150 just from what we know things cost on the iPad 2. So there is more then $100 profit selling it at $250.
You got a lot to learn. Cost of parts is only cost of parts and those are all estimated. IT doesn't cover research and design, manufacturing, distribution, retail, & advertising costs. $5 is alot of profit on a $250 item. IT's 2%. Alot of companies have profit margins of only a couple percent if they make any money.
And as I said often Apple makes less than they want on low end models. They accept that with the notion that they will make more profit on higher end models. Hence why it looks like Apple charges you, for example, $100 for 16gb of extra storage on an Iphone.
Anyway not arguing that this is good. But this is what Apple does. And they do it despite specs on low end models often being undesirable. So yes it is very plausible they release a low end Mini with only 8gb storage even if 8gb is less than desired and even the press will mention that. And remember if someone just wants to read books on it and surf and do email then 8gb is plenty of storage.
And last, the $250 model allows Apple to say that iPad minis are as low as $250 or start at $250 even if many would never buy the low end model because it might not have enough storage. The press will also report that.