Phil Schiller Defends iPad Mini Pricing Decision

[3282868]

So he is pretty much saying that sales were great when customers were getting ripped off at $399, so they should be really excited to be a little less ripped off at $329!

"Our customers will be excited that they don't need to bring as much lube when coming to the store to purchase one of our products."

This made my day

 

[Ice Dragon]

We'll know if they made the right decision down the road by how sales figures turn out.

 

[charlituna]

We where ready to order 1400 units at $250.00 so if he thinks us not ordering 1400 units doesn't matter then good for him.
We will have no choice but to get another tab for the 'every student gets a pad' that the school will be implementing.

That's your choice. Apple isn't going to cry over it. They are too busy servicing those that do buy, not worrying about those that choose to go with price or otherwise since they know that they can't ever make you happy. Not unless they want to run themselves into the ground selling things at under cost (which this would likely end up being) or going cheap on production so they can make a few pennies of profit.

 

[KALLT]

Comparing the iPad mini to an android device is like comparing a Ferrari to a Fiat and then complaining about the price...

Don't be ridiculous. That comparison would only make sense if iPads were made of high-quality parts and assembled by hand. iPads are mass produced and use practically the same parts as other tablets do. The only difference is that Android devices use cheaper materials instead of all aluminium. Plus, at Apple you pay more for the brand and ecosystem.

 

[charlituna]

same problem here, bmw won't lower their price so made my decision to buy a trabant much easier. the trabant has 4 wheels and 4 seats and gets me from a to b and it is is better than a bmw. then i woke up

If you are buying a car to get you from A to B then a 'cheaper' car that runs just as well is better.

If you are buying it to stroke your ego and look impressive then it's not 'better'

 

[3282868]

Simple answer, if you don't like the price make your own!! Because like the Honey Badger, Apple don't care!! I'm pre-ordering 2 and not gonna cry about it.

You're the perfect Apple customer, more money than sense

 

[iEvolution]

We'll know if they made the right decision down the road by how sales figures turn out.

Hopefully customers will send them a message by not buying...but I dont really have faith in the general public, Apple has done an excellent job at manipulating the media into giving them a premium image and positive reviews so the clueless will buy it regardless.

 

[jclardy]

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 is $129 more than Kindle Fire HD. For that you get a much nicer enclosure, a larger screen, a better tablet app selection, better cameras, 3 ounces less weight, better battery life and no ads.

They are much different experiences, trust me, as I have owned the original Kindle Fire. KF is decent for reading novels, and that is about it. If you want to play the super popular games it works for that as well. Reading anything other than novels or browsing the web pretty much sucks on 16:9 - in portrait you have to zoom to read anything, in landscape you have to scroll too much.

While I wish Apple would have hit $299, I think they are justified in charging more for a better experience.

 

[netdog]

The iPad Mini was inevitably going to be more than the cheapest new model iPod Touch, and hey, in fact the Mini is only $30 more.

 

[50548]

If you are buying it to stroke your ego and look impressive then it's not 'better'

Of course it is - this is the economic concept of welfare, after all.

 

[charlituna]

I disagree, even without discounts on the full size iPad, I see no reason to get a 7.9" unit with a price difference of $70. They will probably stay on shelves during the holidays. Market will dictate the price - they'll be forced to reduce to $299 or lower.

I suspect that you will be proven very very wrong and this will be yet another typical Apple launch where pre-orders will sell out in no more than 12 hours (and later be revealed to be at least 5 million units), there will be folks lining up at stores anywhere from 12-72 hours early depending on the location (hell there might be folks already camping at 5th Ave), photos of lines everywhere and Tim will announce that the US wifi only launch was at least 15 million units over the first 3 days.

This is Apple after all, and folks will pay for the impression of luxury.

 

[ozone]

Hey, if it works - and if it works well - then it's worth the price. You get what you pay for.... most of the time... don't get me started on my Playbook...

 

[lilo777]

Simple answer, if you don't like the price make your own!! Because like the Honey Badger, Apple don't care!! I'm pre-ordering 2 and not gonna cry about it.

Do you realize that for the same price you could buy three Nexus 7 tablets which are better tablets than iPad Mini?

 

[2bikes]

Don't be ridiculous. That comparison would only make sense if iPads were made of high-quality parts and assembled by hand. iPads are mass produced and use practically the same parts as other tablets do. The only difference is that Android devices use cheaper materials instead of all aluminium. Plus, at Apple you pay more for the brand and ecosystem.

I thought they were assembled by hand

 

[3282868]

Has Apple ever changed the price of a new product?

Yup, first gen iPhone, by $200. Even gave those who paid full price a $200 Apple store credit

 

[techwhiz]

Selling at Cost?

According to some sources that claim to know the component costs etc, they are basically selling it at cost.

Go to this article :
http://news.cnet.com/8301-17938_105...s-more-to-make-but-apple-eats-the-difference/

The BOM + assembly of an iPad2 (16GB) is about $250.
The 3rd generation iPad is (16GB) is ~$316 the additional memory to get to 32GB is about $16 and to get to 64GB is about another $35.

So we can all agree the is cost less to build an iPad Mini than an iPad2?
If that is the case then the margin for one of those is on the order of $80+.
If you bump to a 32GB version the margin for Apple goes to $170+

The iPad mini is not a Nexus 7 killer because it costs too much.
The Nexus 7 update dues next week bumps the memory to 32GB for $249 an equivalent iPad mini is 70% more at $429.
The iPad mini is for someone that wants an iPad with smaller screen.

The price for the incremental memory is obscene, but that's how they make money. $100 for 16GB of memory, $200 for 48GB... I just bought a 64GB sdx card for $45 retail.

I'm not an Apple basher:
We have 2 iPads, 2 iPods, MacBook Pro, MacBook Air, Mac Mini and a Mac Pro in my household and we also own Apple stock.

The iPad mini with 32GB at $329 might have been compelling but not a $429. 16GB iPads run out of space too fast. At $329 (32GB) there were going to be two of them as Christmas presents for a couple of kids. Not at $429.
For $858 I can buy 3 Nexus 7 and have change left.

Looks like the kids will be getting Android. They don't really care.
The iPad mini is for someone that specifically wants an iPad, just smaller.
The 7" tablet market is still Android. Apple dropped the ball.

 

[aerok]

Good, get one. I've never understood why people who are "supposedly" passionate about something (a brand, etc.) spend their time strolling through the forums of a brand, product, etc. to say why they DON'T WANT ONE?!? They obviously DO WANT ONE -- but spend their time justifying why they can't GET ONE.

If you own a Chevy, you'll likely stroll through the Chevy forums and perhaps the Cadillac, Jaguar, BMW, etc. forums (products that you WANT to get if you COULD). You're wasting your time strolling through the FORD and DODGE forums just to tell everyone that they suck.

Android (and previously Microsoft) zealots have so much pent up ENVY that they waste their (and OUR) time strolling (ie trolling) MacRUmors.

GET A LIFE! (REALLY!)

You're comparing a gadget to a car. Most people don't own two cars but a lot of people own more than one gadget. I love my Macbook and I enjoyed two generations of the iPhone, there is nothing wrong with critisizing a new product. And that does not always mean that they are a hater or fanboy.

Oh also, breathe and calm down! You don't want wrinkles on your face.

 

[iBug2]

What do you mean 'inferior but we still bought it'? They were selling against Compaq.

Apple in the 90's with the classic OS was inferior in too many ways against Win machines of its time. First of all, starting with Windows 95, Microsoft actually was producing a more advanced OS than Apple was, and Intel was making much better chips than Motorola. There were a brief number of apps which ran slightly better on Moto chips but they were limited and Windows in everyday tasks was much better than Mac OS. And Apple was putting an even higher premium on their prices back then. Today's Apple products are cheaper compared to the 90's and 80's. I remember how much we paid for our first set of macs back in 88, a small fortune.

 

[Hell0W0rld]

Does he also defend the moronic decision to charge 329€ for the ipod touch 5, same price as the ipad mini?

(And yes I know I complained about this 3 times already.)

 

[Vtwo]

The form factor is not the real problem, imho, it's rather the external competition which is more responsive, offering better specs (actually, even the Chinese tablets offer a true Retina screen for $ 290 and their quality of workmanship and integration only improve) and the internal competition of the iPod Touch which proposes a screen with a higher definition, respecting the current standards, and a better price for the 32gb version

If you compare pure specs, Apple is always going to be more expensive. You must take things like build quality, customer service, reliability, etc into consideration when you consider the pricing. If you only look at specs, phones like S3, Note 2 etc are rip offs as well because you can fine Chinese knockoffs at Michel cheaper prices and more features.

 

[Ryth]

16 gigs on an iPad mini will be used up VERY quickly... out of the box you're starting with approx. 12 Gigs...AND when you download an app, you are downloading EVERY configuration of that app... you will be downloading RETINA data for a NON RETINA display.

Buying a 16 Gig iPad mini is NOT a good move. You will be sorry.

Sorry but you are sooooo wrong.

A 16GB iPad mini is a good move for those that don't plan on using this device as a storage depot for all their music, videos and game apps.

There are MANY people who haven't even broken 10GB on their 16GB iPad3s and iPhones who use their devices mainly as a browser, email, social, reading device with occasional movie/music/gaming...and usually that is streaming.

The 16GB is exactly the right fit for those users, which there are millions of. And don't forget many people off-load and on-load games, music, movies via their Mac computer to their device...so they aren't paying the $100 premium to upgrade.

Those that go 32 or 64 plan to use this device as their 'main' device...not as a accompanying device.

 

[gijoeinla]

I don't understand why everyone is so upset over the starting price of the iPad mini. Especially since ALL of their products have a large price gap between comparable products. It's not like we aren't going to buy it anyway. After all, it's an Apple product.

Bottom line -- Apple never has AND never will IMHO compete on price vs BRAND -- the $329 price is a strategy not a desperate move to compete.

Why o why is there so much lame chit chat about this as if Apple is so lame so living under a rock so distant from reality to shoot them selves in their own a**??

People come on -- really.

Ya your right, they ARE a bit more CALCULATING than many of you can deal with.

This latest incarnation was a calculated move and will pay off on spades. IT'S NOT A CORE CUSTOMER geared product. Ya I speak with experience cuz I'm a 20 year plus customer. The fact that so many here are bitching on this shows most if not all of you AREN'T CORE customers and Apple was right -- this product is as mass market as you can get... From Apple.

Some of you cite "race to the bottom" as a price driver -- um there's two sides to that coin -- "race to the top"...???!! Duh like Schiller, Ive or Cook didn't "think" about a model with less features and older hardware but, yet was made --MADE with newer manufacturing technologies??!!! Do many of you not LISTEN to the keynotes? Ivy clearly spent a lot of time in the video EXPLAINING that process in detail - clearly Apple is banking on a niche of better made products -- newer materials -- thinner, lighter -- offering a more reliable experience supported by nearly a billion apps. WTF!!!

All these updates and the interior designs seem to spell that in fact a retooling of production was under way for a long time that now will allow for nearly instant upgrades, changes, and ways to compete on OPTIONS versus price. Logic people.

 

[charlituna]

poor selection of tablet apps - I concede

Apps determine possible use so that's a major point of consideration

poor performing GPU - May score lower benchmarks over iPad Mini but plays all the games fine

But what are the quality of those games. There are several on the ipad/iphone that are console level quality.

weak distribution and support network - I concede

Given the usage of these tablets a weak support network is a potentially big issue. And yes it might be big enough for some that paying an extra $100 or even $200 for something with a better support system is worth it. Especially if you are looking at schools or businesses. If Junior's 'texts' are all on his tablet and it gets dropped and breaks and doesn't function, "I have ship it to texas and wait for a replacement so I can't do my homework for the next week" isn't really going to cut it. Especially compared to Mom driving him down to the Apple Store 30 minutes away and buying a replacement for $50 cause Mom was smart and got Apple Care on the dang thing.

Don't underestimate the importance of post purchase support. That's a major issue for many.

 

[iBug2]

Does he also defend the moronic decision to charge 329€ for the ipod touch 5, same price as the ipad mini?

(And yes I know I complained about this 3 times already.)

In USA iPod touch 32 costs 299, 30$ cheaper than iPad Mini. Even if they were the same, you would be trading 16GB storage for bigger display. iPad Mini is not a superset of iPod touch.

 

[IJ Reilly]

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.

Which means that the UK price for the iPad mini, adjusting for VAT, is almost identical to the U.S. price, even before you factor in the more stringent EU warranty laws.