Phil Schiller Defends iPad Mini Pricing Decision

[goinskiing]

And, unfortunately, these are some of the reasons the irrelevant iPad mini will FLOP.

Mark my words again: after a flurry of holiday sales, no one will really care about a device that is absolutely redundant/badly priced between a highly-capable, 4-inch Touch/iPhone and the normal iPad.

Yesterday's launch was Apple doing what it does WORST: following the competition instead of setting the bar higher through leadership and innovation. Well, at least the new iMac still gave us a glimpse of TRUE novelty (although still evolutionary) at Apple.

My opinion is rather the opposite. Apple made it clear that it does not want a race to the bottom with their keynote. Look how well that ended up for the netbook at the time. When everyone was all high on netbook sales down at the bottom Apple was releasing the MacBook Air and everyone cried the same thing.

These will sell like hotcakes at redneck family reunion and will sell millions beyond just the holidays. I say this because Phil is right, it's the cheapest entry level iPad they've released. Many people have screamed they don't want to pay the $500 premium or even $399. $329 is low enough.

And is far as "old technology," it's a fairly weak argument as it's not quite Apple's to Apple's. It's the same technology in the iPhone 4S and iPad 2 which are both still being sold. I think the iPad mini looks like a great product, maybe not innovative HW-wise but piggy backing on its own innovation of the tablet (ie iPad market).

But hey, that's just my opinion.

 

[50548]

I think that the iPad Mini will sell extremely well at the expense of Ipad2/4 sales. If it were priced lower, Apple could've snatched sales from amazon/Google but at $329, I believe it will only lower sales of their other products, including the new iPod Touch.

It's gonna be even worse if this happens - because the iPod Touch and the normal iPad provide much better margins for Apple than the iPad Mini...so it's not only flopping when the world market is concerned, it's also screwing Apple revenue.

 

[Tinmania]

I remember that time I almost used the rear camera on my iPad 2. That was a crazy day.

Thanks for the reminder that my iPad 3 even has a rear camera.




Michael

 

[Rogifan]

They state they mostly focus on making a profit on hardware, they also make a killing on content as well. Even with that said I can see how it is not their model to sell it near cost. It is about the form factor even though it is smaller with dated tech. Maybe with an upgrade next year it will feel worth it.

You have some facts to back up that Apple is making a "killing" on content?

 

[JAT]

Maybe that was true in 2009. It's definitely not the case with Jelly Bean version of Android.

Our 7" Android tablet came out in 2012. No Jelly Bean yet.

 

[jagolden]

"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.​

That´s basically Apple saying "If you can´t afford it, get lost".

I for one couldn´t care less about another iToy anyways...

It's amazing how many of these types of comments come from "newbies" who signed up just to complain.

You say you don't care but here you are making comments.

Envy is a terrible thing. So I agree, if you can't afford it, don't buy it.

 

[Xiroteus]

You think Apple is the first and last company to be on a roll? Twenty-five years ago I could have said similar about Sony. But rarely does it continue ad infinitum.

Eventually it gets to the point where sales are based more on inertia than innovation. I think Apple is approaching that point. I hope they can hit a home run before that happens. (I have been rather disappointed beginning with the 4S.)



Michael

I do notice people can get disappointed easier with many of their updates, I also wonder how much can any one item be updated within a year unless they change things just for the sake of it.

The new update to the iPad feels like something that normally would be. Yearly update yet it was not worthy to have a big event about it because it is just a simple update that does not require nythjng flashy. I do wonder if anything huge will come up next year, almost doubt there is much else that can be done at the moment then standard updates.

 

[gnasher729]

The screen is arguably the most important attribute of a tablet, and the Nexus 7's is mediocre (viewing angles, washed out, colors way off after viewing videos). I haven't seen the iPad mini in person, but I expect its screen quality to be superior to the Nexus 7. Yes the Nexus' 1280x800 is nice, but I'd be OK with losing 23% of the pixels while gaining both quality and size (the iPad mini's screen area is 36% larger).

Nexus has a Pentile display. These displays use 2 sub pixels per pixel, or four sub pixels for two pixels, while iPad, iPod, and every computer monitor, laptop display, and TV in existence use 3 sub pixels per pixel. That is one third fewer sub pixels. Which goes a long way to explaining why the display isn't anywhere near as good as you would expect from the resolution.

 

[mattopotamus]

Outdated with the tech inside as well. Inside the hardware as well as the hadware?

You two are funny.

The screen and the hardware...aka the internals and externals

 

[Swift]

Think of the iPod

At first, the iPod was very expensive. Won't sell, they said. They sold very, very well, because they were very, very good. The market grew. Well, not to worry, the other music player makers said, we'll fit in underneath that enormous price. Then iTunes came along, and buying music there, and iTunes for Windows, and sales skyrocketed. Then the iPod mini came out, chomp. Harder to get something below now. Then the Shuffle came along. There might have been some things for less than $70, but they weren't iPods. All the iPod-killers crashed and burned. Nobody had iTunes, the iTunes music store, a presence throughout the world, and poof!

Yeah, the Fire HD and the Google Nexus are cool, and cheap -- but they're sold at cost. How many countries are they available in? Two? Three? Try using a Fire for much else besides streaming movies from Amazon, buying e-books from Amazon, and so on.

Apple makes money selling you things. They don't direct ads to you, they don't need to sell you other stuff. Those Apple things get so popular for themselves. First of all, the iPad mini will be as big a success as the iPod mini/nano -- which sold more than anything else Apple made at the time. You might find other things, a little cheaper. So what? Check out who buys the $199, 8 GB Nexus. Nobody. Everybody buys the $249 16 GB model, which Google makes money on by vectoring in on you with ads and selling your "aggregate data." Okay, but I'm not interested. What's their next model going to be? Will I get a software update when there's a bug? Will Google just lose interest in the tablet if it doesn't sell? I'm losing google.com/ig soon. They just lost interest? Didn't make as much money for them? What about I go to the Google/Amazon store to get a repair? Oh. No stores. No-one to talk to at all. No, I'll give Apple its profit up front, and then I'll ask them not to send me those iAd things -- and they won't.

 

[uknowimright]

had they just shrunken down the 3rd Gen iPad, the price would be reasonable

 

[Xiroteus]

You have some facts to back up that Apple is making a "killing" on content?

A slight figure of speach stating a killing, they seem to make a good profit even when they hardly do anything, my opinion is mostly based on things I hear, and if Amazon is making profit in content there is no way Apple is not makng a good amount as well. It is Apple after all.

 

[Zwhaler]

I don't understand people who are so mad the iPad mini isn't priced at $299... yes I understand you want it to be cheaper but the truth is if $30 is going to make or break your ability to be financially stable then you ought not to be purchasing an iPad, period.

 

[samcraig]

Nexus has a Pentile display. These displays use 2 sub pixels per pixel, or four sub pixels for two pixels, while iPad, iPod, and every computer monitor, laptop display, and TV in existence use 3 sub pixels per pixel. That is one third fewer sub pixels. Which goes a long way to explaining why the display isn't anywhere near as good as you would expect from the resolution.

It will be interesting to see what's unveiled shortly regarding the Nexus.

 

[mattopotamus]

This... I did not expect from you...

Outdated how? In all respects, it is better than the iPad 2. It has Siri, it has more PPI than the iPad 2. Most of the smaller tablets seem to be "weaker" versions of their larger versions.

I do not care if this sounds like a Fan Boy comment, but I think it was smart to give it the same resolution as the iPad 2. This prevents fragmentation, and it will extend the time that apps continue to support the iPad 2 resolution. Not sure if that would happen, but still. And look at how long it has taken the majority of apps to support the iPhone 5. I still have plenty that don't, which is annoying.

I am no expert, but it seemed that there was a general consensus that they probably could not use the same resolution used for the iPad (3rd and 4th Gen) on the iPad Mini if it came with a retina display.

I suppose they could have added the A6, but I assume they chose the A5 due to cost and to keep it weaker than the full size iPad

Honestly, I wanted the best they had to offer just in a mini version. I would be willing to pay more if it had these things. It seems like they just wanted to get this mini out asap, so went with lower hardware specs and screen resolution. I hoped for basically an ipad 3 just mini. Makes me want to wait until the next mini comes out. Usually I dish out big money for apple products....even if they are over priced. I would rather it be over priced but have a little better specs.

 

[bommai]

Get the nexus 7 instead please. Don't fall for the kindle fire. The nexus 7 is a much better product.

One of my friends who uses the iPhone 4S bought a Nexus 7 and said that the software is no where as smooth as iOS.

 

[Swift]

You have some facts to back up that Apple is making a "killing" on content?

They're making 30% on each sale! Why, for that, they pay for server time, space on the store, advertising and so on, and the whole business of selling it through the Apple ID. Terrible deal for sellers, I guess. That's why they keep flocking to the Apple Store.

 

[Xiroteus]

If it has a bit more power and a far better screen next year I will understand the price. If people really want a smaller iPad it is likely worth a hundred more the. A cheaper tablet, eve. I can see spend a bit more once to get a product that is within the system I want.

 

[Rogifan]

Here's a suggestion. Anyone who thinks is is a rip off, don't buy it. Tell your friends and family not to buy it. Tell them to buy a Nexus or Fire instead. At the end of the day the market will decide whether this price is too expensive or not. And if people aren't buying it the price will come down. People say the iPods are overpriced yet Apple has sold 3M so far since the new models were released. Obviously someone thinks they're worth the $$$.

 

[gnasher729]

Note also that U.S. prices are stated before sales taxes, whereas VAT is included in the UK price. So far starters you need to back the VAT out of the UK price. This is 17% currently, is it not?

20 percent. In addition, there are European consumer protection laws which mean that if your iPad breaks down after one year and one day, Apple doesn't have to do anything in the USA, but may have to pay to fix the problem in Europe. That will add something to the cost.

 

[charlituna]

Where is the defense for releasing iPad 4 so soon?

They wanted to. Really that's all the 'defense' that any release needs. They didn't sign a promise to not release things in less than a year, they didn't suddenly make all the other models stop working. Why they wanted to is moot. They did, so they did. No one is making you buy it so don't if you don't want to.

 

[mudman2]

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

But *****

 

[unlimitedx]

Here's a suggestion. Anyone who thinks is is a rip off, don't buy it. Tell your friends and family not to buy it. Tell them to buy a Nexus or Fire instead. At the end of the day the market will decide whether this price is too expensive or not. And if people aren't buying it the price will come down. People say the iPods are overpriced yet Apple has sold 3M so far since the new models were released. Obviously someone thinks they're worth the $$$.

I agree. There are plenty of options available on the market now. Just go and get a tablet you prefer instead!

 

[daneoni]

Translation: Because we freaking can. Get over it! *drops mic*

At $329 I'm just not interested. Sorry Apple. There's a line, and for me its $249 or bust.

 

[shartypants]

All things considered, its a good value at $329. You get what you pay for.