iPad mini Mini planning if I'm Tim Cook

[ivada]

You were proposing a $229 (nearly zero margin) price point which, I don't care how superior the iPad 4 might be, would absolutely draw buyers form the iPad 2 and iPad4. While profit can certainly come from volume, going from a 30% margin to 1-5% margin is never a good business plan.

Apple has obviously done the math so we're seeing the $329 price for a reason.

$229 is not even remotely a "nearly zero margin", please!! You think Kindle and Nexus are selling their devices at a loss by pricing them at $199??? Component to component all these devices probably cost the same or very very similar. There's only a delta premium Apple's customers are willing to pay (me included) for the ecosystem - $130 is way out of that range.

The ONLY reason iPad Mini is priced at $329 is because Apple's getting greedy this time around.

As for your cannibalizing argument, why don't you argue that iPad Mini will cannibalize from iPhone too, seeing a few "Can I use my Mini as a phone replacement" threads around here?

 

[WilliamLondon]

However in this case they've clearly focused on prioritizing weight, size and battery life over screen resolution

Yeah, they did, and what's great about this decision (for us) is that if/when they do upgrade the display, they'll have to ensure the device doesn't grow in any significant way. I mean, can you imagine they upgrade its screen and make it twice as fat, or halve the battery life? No way, they've established that size of this thing is paramount - sadly, this may mean we have to wait longer to get the better screen, but I have to say, the thinness of this device just looks so beautiful I'm glad they did it this way and I'll just have to try and be patient.

 

[mantan]

Well, no, not exactly. You tell me how it's possible to cram a retina display in the mini's form factor, maintain 10hr battery life and not overheat like crazy? And, you tell me how to do that while maintaining the same or better margins as the iPad 3. Remember, Apple is betting long term on the success of the iPad. And they're a hardware-driven company, unlike Google and Amazon. Put those two together and it would be suicide for them to prematurely squeeze their own margins right from the get-go, and when there's no reason to do it.

I'm sure Jony I've will tell us exactly how they did it in the Mini pad 2 release.

Hey I don't blame them. If they can double dip and get tons of cash now and in 2013, why put in the effort to make displays that match their competitors.

I just hope the competition continues to turn up the heat until Apple stops mailing it in.

 

[comatose81]

After you play catch up you have to set the bar higher. Apple was caught with their pants down because Steve didn't want a 7 inch. Let's see what the next mini will be like then you can fire me.

Pants down... 7 inch...

I think this thread is done.

 

[ivada]

pants down... 7 inch...

I think this thread is done.

lmao!!

 

[poloponies]

$229 is not even remotely a "nearly zero margin", please!! You think Kindle and Nexus are selling their devices at a loss by pricing them at $199??? Component to component all these devices probably cost the same or very very similar. There's only a delta premium Apple's customers are willing to pay (me included) for the ecosystem - $130 is way out of that range.

The ONLY reason iPad Mini is priced at $329 is because Apple's getting greedy this time around.

As for your cannibalizing argument, why don't you argue that iPad Mini will cannibalize from iPhone too, seeing a few "Can I use my Mini as a phone replacement" threads around here?

It's a reasonably well know fact that Amazon and Google are barely breaking even on their devices. Parts estimates at the $199 device level range from $155-$180 PLUS manufacturing PLUS marketing PLUS development PLUS warranty service... That's not a sustainable business model for a hardware company. Fortunately Google and Amazon are not hardware companies so they don't really view it as a profit center from hardware sales.

My grocery store occasionally gives away pots and pans so clearly Bed Bath & Beyond and Macy's are just ripping people off by actually selling those items at a profit.

 

[ivada]

It's a reasonably well know fact that Amazon and Google are barely breaking even on their devices. Parts estimates at the $199 device level range from $155-$180 PLUS manufacturing PLUS marketing PLUS development PLUS warranty service... That's not a sustainable business model for a hardware company. Fortunately Google and Amazon are not hardware companies so they don't really view it as a profit center from hardware sales.

My grocery store occasionally gives away pots and pans so clearly Bed Bath & Beyond and Macy's are just ripping people off by actually selling those items at a profit.

Sigh...enjoy your $329 iPad Mini. Apple shareholders like me thank you for your patronage and loyalty.

 

[poloponies]

Sigh...enjoy your $329 iPad Mini. Apple shareholders like me thank you for your patronage and loyalty.

Not buying a mini. And not sure why you find it hard to believe that Google and Amazon aren't setting a workable benchmark for hardware pricing.