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I think they would go along the lines of:
$199.99
A5 Processor
5 MP iSight camera (maybe)
512 MB RAM
16 GB Memory
Non retina display

Pretty much a smaller iPad 2 with a newer processor.

Little chance of that price with those specs. The iPad 2 is $399, you aren't going to get the same specs with the only difference being a 7 inch screen vs a 10 inch screen for half the cost.
 
Everyone is assuming the the ipad mini has to be $200 or so?

Why?

Apple does not care about the rival price range, they never have.

Personally I wouldn't mind a iPad mini priced a relatively less than the new ipad with the same specs.

-High res screen
-same processor ( or same as the new iphone )
-5mp camera

I don't need a 10inch ipad as much as a need a mini....there is a market for consumers like me.

I agree there is a group of consumers who would buy a smaller Version of iPad 3, most likely as a companion to the 3 they already own, to use for commuting purposes. However. I think Apple is hoping to drawn in a wider group of consumers.

The holidays will be here soon, Tweens & teens everywhere want iPads but the base cost of $499 before taxes puts it out of the price range of many parents. An iPad priced at $200 - $250 is a lot easier to swallow. Add in an inexpensive case or cover and Apple care + for say $50 and more parents can afford to say yes to iPad. Parents look like Hero's, kids are thrilled & Apple brings in yet another generation of new customers.

My iPad 3, with taxes, Apple Care+ and case ran close to $700, As a parent I would be hard pressed to say yes to such a gift, particularly if I had more than one child. An iPad at $300 total? Much, much easier to swallow.
 
You guys should be able to price the device more intelligently than this discussion.

It will be priced between the iPod touch and iPad.

Likely at $349...

Apple has never sold a loss leader product and will certainly not do so now.
 
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