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August 26, 2013

Comments

Think Red has nailed it... looks like a very believable strategy and one that would most certainly hurt the Android market further.

I see these prices:

1. iPad mini 16GB for $275.
2. iPad mini with Retina Display 32 GB at $350.

These prices would CRUSH the competition.

To Red:

No way Apple offers a $79 for cellular and 50$ to double the storage for the mini. It will still be $100+ for either.

And I don't see why they'd offer the 1st generation at a lower price than the mini whose purpose is to already be at a lower price than the retina full sized iPad.

For me, it doesn't fit the story but Apple is full of surprises.

What's being stated in this report contradicts your view. The fear Apple having two-tier pricing for the iPad mini. I tend to think that if Apple delivers a lower priced non-retina mini it will hurt Android. White boxers don't have many apps, so I don't think that's a huge issue.

Most analysts never see Apple having an advantage over Android for any reason. To most analysts and Wall Street it's all about who has the most market share and the cheapest unit pricing. There's no tablet Apple can offer price-wise that will beat out the Chinese white box tablets that cost $60 to $100. These low-cost tablets are the ones that Wall Street believes will put Apple out of the tablet business and that everyone in BRIC nations will be buying. Wall Street believes that no one aspires to owning the higher-priced iPads when they can get Android garbage for practically nothing. All Wall Street ever says is that those cheap products are seen to be "just as good" as Apple products and that consumers are stupid and can't tell the difference between good products and mediocre products. I'm very sure that Apple can't compete in price against dozens of no-name Android vendors pumping out dubious quality tablets. Wall Street thinks in very simple terms. Whoever sells the most product is the winner and dominant player of the industry. And they believe that is Android.

Hmm... I don't know. I don't see Apple dropping the current mini to anything lower than $279, if at all. I do see the iPad 2 finally being axed, since it still uses the 30-pin connector. It would be nice if Apple lowered the price for the cellular option across the board, and upped the standard amount of storage space.

I could see this:

iPad mini (2nd Gen) w/ Retina Display and 32GB starting at $329, add $79 for cellular option, add $50 for each storage upgrade tier to a maximum of 128GB.

iPad mini (1st Gen) 16GB (only) for $279 + $79 for cellular option.

iPad 2 discontinued.

iPad (5th Gen) $449 w/ 16GB, add $79 for cellular option. This would effectively replace the iPad 2.

iPad (5th Gen) $499 w/ 32GB, add $79 for cellular option, add $50 for each storage upgrade tier to a maximum of 128GB.

This is all just a big wish list, but I think it could be a good pricing strategy.

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