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Phil Schiller addresses criticism over iPad mini price

updated 04:17 pm EDT, Wed October 24, 2012

Mini price exceeds most analyst estimates

Apple marketing executive Phil Schiller has defended criticism over the iPad mini's $329 price tag, which exceeded earlier estimates from many analysts. The company was not expected to match the $199 price of Google's Nexus 7 or Amazon's Kindle Fire HD, but the $129 premium has led some analysts to question the Mini's ability to have a significant impact on sales from its Android-based rivals.

"The iPad is far and away the most successful product in its category. The most affordable product we've made so far was $399 and people were choosing that over those devices," Schiller told Reuters. "And now you can get a device that's even more affordable at $329 in this great new form, and I think a lot of customers are going to be very excited about that."

Sterne Agee analyst Shaw Wu last week suggested the iPad mini represents the "competition's worst nightmare," even with a price up to $349.

The smaller iPad has been generally well received, sporting a larger display than most in the seven-inch class. The device offers most of the same features as the iPad 2, but in a much smaller package that does not sacrifice battery life or display resolution.

Apple will begin taking pre-orders for the iPad mini on Friday, with shipping slated for November 2.



By Electronista Staff
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  1. LenE

    Fresh-Faced Recruit

    Joined: 05-19-04

    Analysts and other whiners that complain, simply don't understand Apple's business model, which is essentially make a profit on everything.

    Compare this to Amazon's, which is lose money on the devices and hope to recoup profit in the future, or Google's which is just sell a bunch of ads on the many devices that don't have profit on the front-end. Both of these are lousy user-experiences, as the real customers are not the device buyers.

    Apple is winning with their model, and will continue to do so in the future, because they have the most real value for the end user in their offerings.

  1. Bobfozz

    Fresh-Faced Recruit

    Joined: 07-28-08

    Just WHEN have Analysts made Apple even one thin dime?
    The Analysts don't know what they are talking about, almost NEVER. I wish MacNN would review all the past "blew its" made by these jerks who are still thinking MARKET SHARE, MARKET SHARE.

    Even Steve said we like to make great products first, the money follows.
    The analysts never talk about comparisons of what people get for their money.

    The min-iPad has a slightly bigger screen, 49% more pixels, tons of apps and a fair price. The other "jokers" are scared crappless that the mini-iPad will succeed because their plastic pieces of worthlessness will be in the quandary of what can we do to make it cheaper instead of what can we do to make it better? Racing to the bottom once again.

    Apple does not make these devices for the analysts. If the analysts were ANY good they would stop people from selling their Apple stock, losing money, and stand pat... but they don't. Think about this for a minute... WHAT good are these analysts? Do they sell stock (probably not)? They just talk to investors and worriers.

    They were doing this angle to Apple years ago and they still have not figured it out... and won't because they belong to the Stupid Club. Apple products are chic, innovative, and wow, they even work!:5stars:

  1. msuper69

    Professional Poster

    Joined: 01-16-00

    Regardless, the iPad mini will sell like hotcakes.
    And the doom and gloom will continue.
    Apple must surely be going under any day now.

  1. psdenno

    Fresh-Faced Recruit

    Joined: 05-06-03

    Did anyone actually think there would be no one expressing unhappiness with the iPad Mini? Price, size, and screen resolution are about the only things to bag on, so naturally price will be the biggest/loudest complaint. Im sure the majority will find everything about it "just right" and not complain.

  1. pairof9s

    Mac Enthusiast

    Joined: 01-03-08

    Well, he may be right (and the track record proves so), but in my novice opinion it should've been $299 and that would definitely be a home run. Guess the feeling is that price point would compete w/ the similar price of the new iPod Touch.

  1. FireWire

    Mac Elite

    Joined: 10-03-99

    How did he address the issue? He simply said "yeah it's expensive, but people will buy it anyway.."

  1. chas_m

    MacNN Staff

    Joined: 08-04-01

    No he didn't. He said "you're getting a full iPad for less money than you've ever gotten an iPad before."

    While I agree with others that it would have been much harder to resist at $299, the superior OS, build quality, larger screen and App Store are *worth more* than its competitors, so you should expect to pay more to get more. It's a fair deal at $329, but it could have been a great deal at $299.

  1. eclux

    Fresh-Faced Recruit

    Joined: 07-07-08

    Is technology reporting exempt from basic arithmetic and grammar? If Steve paid $329 for an iPad mini, and Jeff paid $199 for a Kindle Fire HD, what was the premium that Steve paid? I'd say $130, not $129. And I'm thinking Mr. Schiller didn't defend the criticism, but rather he defended the pricing that was being criticized. Accuracy in writing is not that difficult to achieve. Or maybe it is.

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