iPad Mini Will be “Worst Nightmare†for Apple’s Rivals

[Maura]

AppleInsider reports today that Sterne Agee analyst Shaw Wu has said that he thinks that the iPad mini, due to be announced on October 23 by Apple, will be “the competition’s worst nightmare.†Wu bases this belief on the fact that Apple’s rivals are already having trouble competing against the $399 iPad 2 and $499 iPad 3, let alone a smaller, cheaper iPad mini. Wu says that just how hard Apple’s competitors will be hit depends on whether or not it wants to “go for the killâ€, and swallow up lower profit margins in order to achieve the $199 price point of such competitors as the Google Nexus 7 or Amazon Kindle Fire HD. However, Wu actually goes as far as to say that he doesn’t even think that Apple needs to lower the price point as far as $199 for it to be a success, and he thinks that the smaller tablet could be successful at a much higher price point of $350. Recent reports have suggested that the entry-level Wi-Fi-only iPad mini could be priced at approximately $250/£250.

Source: Apple's smaller iPad expected to be 'competition's worst nightmare'

 

[AdmiralAdama]

Apple has to be careful with its gross margins.
They're the juiciest in the business and that enables Apple to maintain it's high valuation (stock price).

Discounting any iOS device that isn't being replaced by a new model is harmful. It would change consumer perception that there is higher value in an iOS device than there is in a competing product.

AA

Sent from my iPhone using iPF

 

[thewitt]

They won't be selling into the low end market. They have never done this with any product line. No need to start now.

 

[zunex]

They won't be selling into the low end market. They have never done this with any product line. No need to start now.

Not to mention it would affect Apple reputation of providing High Class Products only.