Phil Schiller Defends iPad Mini Pricing Decision

[MacRumors]

With pricing on Apple's new iPad mini starting at $329, some observers were disappointed that the company was unwilling or unable to launch the device at closer to $249 or even $299. With competing 7-inch Android tablets selling for closer to $199, some have felt that Apple has left too much of a pricing gap when consumers weigh their tablets purchasing decisions.

Reuters reports, however, that Apple marketing chief Phil Schiller was quick to defend the iPad mini's pricing yesterday based on what the company has seen with the full-size iPad.

"The iPad is far and away the most successful product in its category. The most affordable product we've made so far was $399 and people were choosing that over those devices," Schiller said.

"And now you can get a device that's even more affordable at $329 in this great new form, and I think a lot of customers are going to be very excited about that," Schiller said.

Several of Apple's tablet competitors, including Amazon and Google, are selling their products roughly at cost, preferring to make money on content, advertising, or other means associated with usage of their tablets. Apple, however, employs the opposite strategy in focusing on the hardware as its primary profit generator, making it difficult to match competitors on price. Still, many had hoped that Apple would be able to come a bit closer to its competitors' pricing.

Article Link: Phil Schiller Defends iPad Mini Pricing Decision

 

[Orlandoech]

I for one think its a rip off, $249 to $299 TOPS. Thanks to the overpriced, in sufficient hardware, especially resolution it made my buying the Kindle Fire HD that much easier.

 

[yoak]

No need to price it lower when they are going to sell more than they can make anyway

 

[GeekLawyer]

The price is fair. It's the lowest entry price for a new iPad.

Apple doesn't race to the bottom on price. They're in business to make money. (And some pretty amazing products.)

 

[Slumpey]

Not worth it yet. Too high for what you are, or better yet, not getting (faster processor, retina, gps).

 

[haruhiko]

Apple for sure won't join the race to the bottom but I do think that they will release a much better iPad mini in less than a year.

 

[mattopotamus]

I for one think its a rip off, $249 to $299 TOPS. Thanks to the overpriced, in sufficient hardware, especially resolution it made my buying the Kindle Fire HD that much easier.

agreed. It is already out-dated with the technology inside as well.

 

[Oletros]

Shocking!!!

The person respnsible of the price defends it

 

[markfc]

And Apple should sell it at cost why? Apple are in it to make a profit.

 

[Obscurelight]

Was going to buy this anyways as money is not a problem for me. However I do think they could have made a little cheaper they could've dominated the smaller tablet market even at 275

 

[technopimp]

No need to price it lower when they are going to sell more than they can make anyway

Unfortunately, this is true. As much as we b1tch and moan, they will come back in January saying this was the "best selling iPad ever" (and it probably will be).

So, no reason for them to undercut themselves. More $$ for the shareholders, I guess.

 

[tomtendo]

Stop talking about hardware people. This iPad is far superior when it comes to quality compared to anything else out there. AND, nothing is even remotely close to the app store ecosystem; that alone is with an extra 30-100 IMO.

 

[Cory Bauer]

If $329 was all the cheaper Apple wanted to get with their iPad line, why didn't they just lower the price of the aging iPad 2 by $70? It's absurd to me that $70 is all that separates the iPad 2 from the iPad Mini.

 

[TimUSCA]

I for one think its a rip off, $249 to $299 TOPS. Thanks to the overpriced, in sufficient hardware, especially resolution it made my buying the Kindle Fire HD that much easier.

Yeah, screw all the amazing apps you'd actually USE that screen for and go have fun with the Kindle Fire.

The two don't even compare, and Apple knows it. THAT'S why it's $329.

 

[Vol7ron]

I think that if they had done 299, it would have been perfect. However that is just my opinion. I am sure that Apple will be churning these suckers out like crazy for the holidays...

 

[TimAlia]

Quit. Whining. About. The price.

It's the best device in its category. They can't undercut their iPod Touch market.

 

[Navdakilla]

Not a fan of the pricing, but that's how apple rolls and I've been fine with it sooo far haha

 

[student_trap]

I don't have a problem with the pricing

 

[Danindub]

What frustrates me is that, not only iPad mini is expensive in EU, bot what's worse the new iPad 4 is _dearer_ than iPad 3 was! iPad 3 was €479, with iPad 4 being €509...

With no alternative (but iPad mini...)

 

[Newton70]

Apple is charging a premium price for a product stuffed with old technology.

Seriously, a dumb move by Apple. I agree that they shouldn't sell at cost (like Amazon and Google), but Apple had a unique opportunity to effectively close the door on its competitors and it chose not to.

 

[FFArchitect]

I for one think its a rip off, $249 to $299 TOPS. Thanks to the overpriced, in sufficient hardware, especially resolution it made my buying the Kindle Fire HD that much easier.

It only qualifies as a ripoff if money exchanges hands. Otherwise, no one is being ripped-off.

 

[skeep5]

Well let's keep our fingers crossed that the iPad super mini will be $49, with a 4" diagonal screen, built in phone, oh wait...

Seriously though, its a fair price for the quality of product and the quality of apps you can get for it.

 

[MacFather]

Nexus 7 - higher ppi, NFC, more RAM, quadcore, GPS, $100 less expensive...

 

[unlimitedx]

Apple hardware always commands a premium price so why does he need to defend it? I'm sure most people by now know apple's hardware is more expensive so what is there to defend?

 

[applesith]

Apple doesn't compete on price.