Tim Cook: iPad Mini Priced 'Aggressively'

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Original poster
Apr 12, 2001
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During Apple's fourth quarter earnings call today, CEO Tim Cook explained the company's pricing philosophy for the iPad mini in some detail. The following is a portion of our rough transcript:
When we set out to build it, we didn't set out to build a small, cheap tablet. We set out to build a smaller iPad that offered the full iPad experience. The difference between us and the competition is profound. 35% larger screen than 7" tablets. 2 great cameras. Fastest communications with dual bank Wi-Fi. Fit and finish of our precision enclosure is breathtaking when held in your hands. That's what we've done, the iPad mini has higher costs and gross margin is significantly below our corporate average. Height of the cost curve, but we want to make a large number and we're going to work to try to get down the cost curve and get more efficient with manufacturing as we've done with our other products.
One of the things we try to do is to create a product that people will love for months and years and continue using. That's what iPad Mini is designed to do. You can see that more broadly on iPad by looking at the usage statistics. Over 90% of web traffic from tablets is from iPads. Apple will not make a product that somebody may feel good about for the moment, but then won't use when they get home. That's not the experience we want our customers to have. I would encourage you to use an iPad mini and I don't think you'd be using anything other than an iPad once you do that.
Article Link: Tim Cook: iPad Mini Priced 'Aggressively'
 
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impulse462

macrumors 68000
Jun 3, 2009
1,697
2,203
I feel like the 2nd or 3rd generation of this product will be worth getting, but as it is right now, I'm not sure if its worth 329. Maybe for some people, but not me.

They're definitely gonna put a retina display next year.
 

FlameofAnor

macrumors regular
Feb 23, 2011
210
1
A bit surprised by the defensive tone.

A simple, "unlike our competitors, we don't make crap", should've been sufficient. ;)
 

CasinoOwl

macrumors member
Jun 20, 2007
60
41
Palm Springs, CA
I've read a lot of quibbling that this is priced $30 too high. In a market where people are paying that for adapters, I think the iPad Mini will do just fine.
 

neiltc13

macrumors 68040
May 27, 2006
3,115
6
The problem is that the only reason someone would buy this product over iPad 4 is price, but the price is not that much lower.

Who is the person who can afford the $329 for this but can't afford the extra $170 to get iPad 4?
 

3goldens

macrumors 68000
Feb 26, 2008
1,774
91
I agree Mr. Cook!

It's so obvious to most people who understand the dynamics here. Then there are the ever present and constant whiners out there. who never seem satisfied with anything and would rather just complain. Even before the product is released!

This is going to be a terrific product and I can't wait to get my hands on one! I will also be upgrading my iPad 3 to the new one.

To the detractors, go get an android device, see how you like that! We'll miss ya and sooner or later you will see the difference in experience!
 

GREEN4U

macrumors 6502a
Mar 24, 2010
667
379
The only nice thing about the iPad mini over the iPad is the diamond cut chamfered edge and slate color on the back, a la iphone 5. But that's not worth $329 in it of itself.
 

CWallace

macrumors 604
Aug 17, 2007
6,558
2,455
Seattle, WA
The problem is that the only reason someone would buy this product over iPad 4 is price, but the price is not that much lower.
If every iPad owner wanted a 9.7" device, there would have been no market (or market clamor) to offer a 7.9" device.

And since the Mini has the same display resolution as the iPad 2, again, they would have bought the iPad 2 and saved $100 if all they cared about was price and always wanted a 9.7" device.
 

iGuardian

macrumors 6502a
Aug 26, 2008
552
18
Just not sure why anyone would get one. Its just to easy to justify the premium of the 4th gen regular sized one.
The problem is that the only reason someone would buy this product over iPad 4 is price, but the price is not that much lower.

Who is the person who can afford the $329 for this but can't afford the extra $170 to get iPad 4?
The smaller and lighter form factor is a big deal for a lot of people. Ever tried reading a novel on the bus with an iPad 2? Not a pleasant experience.
 

Ludatyk

macrumors 68000
May 27, 2012
1,647
690
Texas
Of course he's going to defend there price just as Phil did. Compared to the competion there products is "always" better.

But honestly, the competition has gotten better... From the Surface to the upcoming Nexus 10. A 329$ iPad Mini without retina screen is not worth it.. IMO
 

FlameofAnor

macrumors regular
Feb 23, 2011
210
1
The problem is that the only reason someone would buy this product over iPad 4 is price, but the price is not that much lower.

Who is the person who can afford the $329 for this but can't afford the extra $170 to get iPad 4?
Really?...... you can get the 64GB Mini for $30 more than the 16GB retina iPad. That's not a small difference. Not everyone needs the retina display, no matter how nice it may be. They still sell plenty of the iPad 2.

There are also many people who didn't buy the iPad do to it's size and weight. They wanted something more portable. The iPad Mini fits that bill.
 

Big Bone

macrumors newbie
Aug 19, 2009
20
0
North Salt Lake
"we're going to work to try to get down the cost curve"

How about they start with selling the ones with more memory cheaper. It's preposterous the amount they charge for a 16 gb increase when it only costs them a few bucks more. That is a greedy attempt at ripping off their customers and puts a bad taste in my mouth concerning Apple products.
 

Jetson

macrumors 6502a
Oct 5, 2003
572
38
Yes, the iPad Mini is a beautiful device.

I still won't buy one until it's upgraded with a retina display and A6X processor.

After all, if the smaller iPod Touch can benefit from the premier display and the iPhone 5 from the more powerful chip, why not the iPad Mini?
 

stevemiller

macrumors 68000
Oct 27, 2008
1,702
1,132
I laugh at the quote of apple saying they want to make products that aren't just appealing in the moment, meanwhile we have articles here describing how droves of people rush to ditch their previous generation device when a new one comes out, even if only a few months have passed.
 

orfeas0

macrumors 6502a
Aug 21, 2010
971
1
Athens, Greece
The problem is that the only reason someone would buy this product over iPad 4 is price, but the price is not that much lower.

Who is the person who can afford the $329 for this but can't afford the extra $170 to get iPad 4?
No it's not just the price, it's the size too.
Not everyone wants a 10" tablet. Whether you like or believe it, some people actually like 7" (this is even 8") tablets.

The only problem is the screen...
The mini's main purpose is reading/browsing, and I don't know if it's worth it without a retina display. I mean the new iPad is amazing and you can't even see the pixels, great for reading.
 

mixel

macrumors 68000
Jan 12, 2006
1,634
755
Leeds, UK
Loads of people will buy this over ipad4 because of size alone.

It's mad how so many forum posters are obsessed with specs to the extent they forget about practical day to day considerations.