Mini iPad, how much impact on iPad and Android sales? Opinions.
- Thread starter PracticalMac
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boomhower
macrumors 68000
I think they will sell very well if priced right. I think the price point for them is $249. At $299 your getting close to a larger iPad 2 new and right at the iPad 2 refurb price. But at $249 it's a substantial savings and close to the Android competition but still with an Apple premium.
I really don't see why the iPod touch would need to be altered much. One is an MP3 player and the other is a tablet. Sure some people have been buying iPT as a cheap iPad but I think those are in the small minority. I don't really think they will canabalize the larger iPad sales much. The vast majority of the sales are going to come from those that either couldn't or didn't want to spend $400-$500 on an iPad.
I really don't see why the iPod touch would need to be altered much. One is an MP3 player and the other is a tablet. Sure some people have been buying iPT as a cheap iPad but I think those are in the small minority. I don't really think they will canabalize the larger iPad sales much. The vast majority of the sales are going to come from those that either couldn't or didn't want to spend $400-$500 on an iPad.
To achieve that, simply drop the price across the existing iPad line up. I still see no need for iPad mini. IMO, the mini's display is too small but it's now big to be portable, and it is a compromise that achieves nothing.
boomhower
macrumors 68000
And give up Apple's massive margins? Never going to happen. They will make a mini if they can make it and sell it at a cheaper price while maintaining their margins.
This is what I have been saying, Apple do not want to make a iPad mini as cheap as HTC or Samsung.
Apple have always being doing this: introduce a new premium high-end product and lower the price of last gen product, this way, they keep the profit margin high, and at the same time shifting more older products out of the door.
Why would they suddenly decide to change their business model, and introducing a cheaper iPad mini that is going to cut into the sales of more profitable iPad 3?
IMO, the best Apple will do is to refresh the iPod Touch line, and maybe add support for 3G .
Here's now I see it:
For myself, I'll settle for nothing less than the best, 9.7" retina display iPad. I rely on my iPad, I use it daily and absolutely love it.
That said, at $249-299, I'll buy a mini to keep around the house for sharing and for e-reading. It's a better size for that. I'll also likely buy one for my Mom and Dad as gifts. My Dad is too stubborn to buy one himself and my Mom is pretty much computer illiterate. This would be the only thing that might work for her, but at $500+ I'm not ready to risk a gift that ends up sitting around doing nothing.
At $199, I'll probably end up gifting a half a dozen in the first year alone. Even if it's a Mini, an iPad is a pretty cool gift and at $199 I can afford to give a bunch of 'em.
My guess is we'll see them as WiFi only devices, starting with 8GB of storage at $199, 16GB at $299 and so on.
The only reason for Apple to push this product to market is to take the tablet market by the throat. Nexus 7 is $199 and is apparently a decent quality product. Kindle Fire, while not a true tablet, is not a bad product and is also $199. It's also going to be updated soon.
The other area of importance is Windows 8 tablets. Those manufacturers, Microsoft included, are not attacking the 7", sub $299 tablet market. Windows appeals to the average person who is generally basing his or her buying decisions on price. If the MS Surface is any indication, the Win 8 ARM tablets will be $399 and up. If a $199-299 iPad, that already has a great reputation and a massive amount of applications available is out there, Win 8 tablets will be DOA. I think Apple wants to win the mobile OS war. Great quality isn't enough. You have to hit the mass market price points to do that.
For myself, I'll settle for nothing less than the best, 9.7" retina display iPad. I rely on my iPad, I use it daily and absolutely love it.
That said, at $249-299, I'll buy a mini to keep around the house for sharing and for e-reading. It's a better size for that. I'll also likely buy one for my Mom and Dad as gifts. My Dad is too stubborn to buy one himself and my Mom is pretty much computer illiterate. This would be the only thing that might work for her, but at $500+ I'm not ready to risk a gift that ends up sitting around doing nothing.
At $199, I'll probably end up gifting a half a dozen in the first year alone. Even if it's a Mini, an iPad is a pretty cool gift and at $199 I can afford to give a bunch of 'em.
My guess is we'll see them as WiFi only devices, starting with 8GB of storage at $199, 16GB at $299 and so on.
The only reason for Apple to push this product to market is to take the tablet market by the throat. Nexus 7 is $199 and is apparently a decent quality product. Kindle Fire, while not a true tablet, is not a bad product and is also $199. It's also going to be updated soon.
The other area of importance is Windows 8 tablets. Those manufacturers, Microsoft included, are not attacking the 7", sub $299 tablet market. Windows appeals to the average person who is generally basing his or her buying decisions on price. If the MS Surface is any indication, the Win 8 ARM tablets will be $399 and up. If a $199-299 iPad, that already has a great reputation and a massive amount of applications available is out there, Win 8 tablets will be DOA. I think Apple wants to win the mobile OS war. Great quality isn't enough. You have to hit the mass market price points to do that.
Both are content viewing devices. Not even an iPad competitor.
With N7 and Kindle Fire, the hardware are sold as a loss leader.
iPad has a great App store. You can use iPad for creation, iCloud is great for sharing personal data seamlessly. And iPad is a great entertainment device, you can steam audio and video use AirPlay.
Again, there is no need for Apple to go so low to compete against N7 and Kindle Fire.
boomhower
macrumors 68000
With Apples buying power I think they can do their margins at $249. Use an iPad 2 internals, no rear camera and I think they could do it. Big question is whether they will be able to do a retina screen at that price.
Apple come in at $249? What next? HTC and Kindle cut their prices to $149 and then $99 by Christimas??? You know this is how a price war starts. Just like DRAM the LCD panel, the large corporations are the losers and only the consumers are the winner. Apple is too smart to fall into that trap.
boomhower
macrumors 68000
History has shown Apple will go anywhere they can make money. From the original iPod, the iPod Nano, the iPod Shuffle, and iPod Touch. Anywhere from $400 to $49. As long as they can make the kind of margins they want with an Apple quality product and feel their is a market they will make it.
My first foray into tablets was the fire at Xmas. I loved the portability, but after getting rid of my pos HTC Evo and getting an iPhone 4 a couple weeks later, I was hooked. I loved the iPhone so much I decided to sell my fire and get the iPad just a couple weeks after new years.
From then on the iPad was constantly in my hand at home and away. My fiancée was wanting one as well, and with classes coming up, wedding planning and a baby on the way, I gave her mine knowing she would put it to better use, plus she was just dying for one but with everything else money had been tight, so I was thrilled to give it to her.
This iPad mini news is awesome for me, low price and I can be back to using something I enjoy. (I'm currently using her kindle fire at the moment and I'm just not a fan after the iPad.)
From then on the iPad was constantly in my hand at home and away. My fiancée was wanting one as well, and with classes coming up, wedding planning and a baby on the way, I gave her mine knowing she would put it to better use, plus she was just dying for one but with everything else money had been tight, so I was thrilled to give it to her.
This iPad mini news is awesome for me, low price and I can be back to using something I enjoy. (I'm currently using her kindle fire at the moment and I'm just not a fan after the iPad.)
LittleGwen
macrumors 6502
I think it'll have a huge impact on the 7" tablets, especially the Google Nexus. Actually, I think it already have, since a lot of people will be holding off buying Nexus because of rumors of the mini iPad. But of course, it Apple charges $299-$399, then maybe it'll sway some people to purchase the Nexus. The smart thing to do would be keep the mini iPad price competitive and keep it low, but I doubt it.
PracticalMac
macrumors 68030
Have you actually seen a "Mini"?
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A $249 mini will directly compete against the N7, and Apple still make a tidy sum.
$249 is actually a very good point, becuase Fire is poised to drop, and the N7 can do likewise to appeal to the budget minded, so the Mini will still be perhaps $100 more, but is typical.
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Probably about $300, will be a miracle if 250, but who knows.
$249 is just too low.
32GB iPod Touch is already $300.
A brand new iPad mini is cheaper than a 2-year old iPod Touch??
If there is a new iPad mini, I think Apple will price it at a premium above the 32GB iPod Touch.
But I rather have a iPod Touch XL than iPad mini. At least an iPod Touch XL should be more portable.
32GB iPod Touch is already $300.
A brand new iPad mini is cheaper than a 2-year old iPod Touch??
If there is a new iPad mini, I think Apple will price it at a premium above the 32GB iPod Touch.
But I rather have a iPod Touch XL than iPad mini. At least an iPod Touch XL should be more portable.
PracticalMac
macrumors 68030
But a 32GB iPad Mini would likely cost $100 more, so what is your point?
Possible mini iPad shell
We know Apple are constantly feeding fake decoys to their subcontractors to weed out the unreliable ones. Even it had iPad written on the case, the real product name could be Apple XXXX! A dumbed down iPad, or anything else.
No way Apple will make a $249 ipad "mini".
1. Nexus 7 16GB is already $249
Apple always prides itself selling things at a premium.
I can see $299 as the starting price because consumers will see the "2" in the pricing strategy.
Remember both Amazon and Asus/Google sell the Kindle Fire/Nexus 7 close to "at cost". That means it gotta cost Amazon/Google around $150-170 just to manufacture the devices.
Add in advertising costs etc, those companies depend on the eco system (app store) to make the real money.
1. Nexus 7 16GB is already $249
Apple always prides itself selling things at a premium.
I can see $299 as the starting price because consumers will see the "2" in the pricing strategy.
Remember both Amazon and Asus/Google sell the Kindle Fire/Nexus 7 close to "at cost". That means it gotta cost Amazon/Google around $150-170 just to manufacture the devices.
Add in advertising costs etc, those companies depend on the eco system (app store) to make the real money.
irDigital0l
Guest
Apple isn't afraid to canabalize their own sales.
iSee
macrumors 68040
If we're going to assume Apple releases a 7.85" mini iPad in time for Christmas, I think we can more or less assume:
* Excellent looks, performance, polish, and compatibility with existing apps.
That leaves price the biggest "unknown" (besde, you know, everything is unknown because it's all speculation
).
At entry-level $199 for 8GB or 16GB -- iPad mini is nuclear bomb to the bourgening Android tablet market.
At entry-level $249 for 16GB of 32GB -- iPad mini dominates but does not wipe out the Android tablet market
At entry-level $299 for 16GB or 32GB -- iPad mini chugs along doing well, but not making a lot of waves -- a bit like the iPod Touch. At this price it would probably have to have a Retina display, and fill the "premium 7-8" tablet" market.
* Excellent looks, performance, polish, and compatibility with existing apps.
That leaves price the biggest "unknown" (besde, you know, everything is unknown because it's all speculation
).At entry-level $199 for 8GB or 16GB -- iPad mini is nuclear bomb to the bourgening Android tablet market.
At entry-level $249 for 16GB of 32GB -- iPad mini dominates but does not wipe out the Android tablet market
At entry-level $299 for 16GB or 32GB -- iPad mini chugs along doing well, but not making a lot of waves -- a bit like the iPod Touch. At this price it would probably have to have a Retina display, and fill the "premium 7-8" tablet" market.
Redjericho
macrumors 6502a
I say minimal impact on either side. Android is different to iOS and iOS is different to Android.
But not many people have the money to but a mini-iPad and a nexus 7, regardless of their different OS, they are still the same category, tablet, and will effect the other's sales.
Xbox 360 and PS3 are quite different, but not many people get both.
PracticalMac
macrumors 68030
I should have calculated price.
$329 will have negative impact.
$329 will have negative impact.