I have a big iPad with no need for a mini iPad.....so Apple shouldn't make the mini since I don't want them to. Because if they did that, it wouldn't make sense for me to buy one since I have a big one, so I wont buy it and because of that, I don't want anyone else to have one either.
I see what you did there.
Anyways, there is definitely a target market. Those not wanting to buy an iPod or iPhone but don't want to pay $500 for a "full" tablet and are looking at the competitors. I don't see why that's so hard to understand. Granted Apple likes it's high margins and all, but that doesn't mean that they will only release a product if it doesn't. Their motivation may be more to squeeze out competitors such as Google rather than just focus solely on the "mini's" margins. Makes perfect sense to me.