Alleged iPad mini models, pricing leaks online

Alleged iPad mini models, pricing leaks online

Summary: Leaked pricing details of the expected iPad mini suggest the device will cost in-between the iPod touch and the fully-fledged iPad.

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TOPICS: iPad, Apple, iOS, Tablets
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A leaked inventory system screenshot has purportedly leaked the pricing scheme behind Apple's upcoming 7-inch tablet, dubbed the iPad mini.

The base price of the iPad mini (8GB storage, Wi-Fi only) is set at €249, or $320 at the current exchange rate, according to German site MobileGeeks (via GigaOm). The leaked screenshot is reportedly from a widely used inventory system in Europe and Asia used by mobile firms and cellular networks. 

Here's the pricing scheme as it's being reported:

iPad mini (Wi-Fi, 8GB, Black/White) €249 ~ $320
iPad mini (Wi-Fi, 16GB, Black/White) €349 ~ $450
iPad mini (Wi-Fi, 32GB, Black/White) €449 ~ $580
iPad mini (Wi-Fi, 64GB, Black/White) €549 ~ $710
iPad mini (Cellular, 8GB, Black/White) €349 ~ $450
iPad mini (Cellular, 16GB, Black/White) €449 ~ $580
iPad mini (Cellular, 32GB, Black/White) €549 ~ $710
iPad mini (Cellular, 64GB, Black/White) €649 ~ $840

(It's worth noting that Apple tends to synchronize prices across continents, even if they don't necessarily translate at the currency-exchange level. It goes almost without saying: until Apple announces the device, pegged for October 23 according to numerous reports, the pricing at this point may not be accurate.)

The iPad mini, which may not be its final name, has been on the tip of the technology world's tongue for months as Amazon, Google, and Samsung continue to dominate this almost-niche section of the 7-inch tablet market. Apple has yet to capitalize on this lucrative market, based on sales figures from the companies' quarterly earnings reports.

There are a few things to consider with the iPad mini. To wit:

Cellular conundrum: The Guardian (via CNET) said that the iPad mini will not include cellular connectivity, citing unnamed industry sources. The leaked pricing figures suggest that Apple has a cellular version of the iPad mini ready to roll out. But cellular devices cost more than wireless networking devices. It boils down to the profit margin figures.

Should the device come without 3G or 4G LTE connectivity, Apple also avoids the headache over selling the expected device without facing the hassle of building different LTE hardware models for the requirements of each cellular network.

That said, the leaked pricing suggests that at least some cellular connectivity may be on the way. Apple could avoid the 4G LTE headaches by simply include 3G connectivity. How this compares to the production costs of including 4G LTE connectivity remains unclear.

PricingThe pricing leaves little to be desired between the 7-inch iPad mini and the 4-inch iPod touch -- two devices that are for all intents and purposes the same device -- (if the iPad mini does include cellular connectivity, include the iPhone into the iPod touch mix) -- because the prices do not suggest a stable middle ground between the smaller and larger tablet-esque devices.

The iPad 3 pricing starts at $499 while the iPad 2 starts at $399. ZDNet's Adrian Kingsley-Hughes suggests the ideal price would arrive in at below $299 to remain competitive with its larger 9.7-inch counterparts. The new 4-inch iPod touch starts at $299 which isn't a far cry away from the estimated $320 price tag of the base version of the iPad mini. 

Apple's profit margins are typically high. Recent Apple v. Samsung court filings show the iPhone alone has a profit margin of between one-quarter and one-third. It's likely Apple will balance two crucial elements -- competing 7-inch tablets, while negating a price disparity between the 4-inch iPod touch and the 9.7-inch iPad -- but exactly how it'll manage this one is anybody's guess.

Either Apple will 'do an Amazon' and sell the iPad mini at a loss or at a fraction of the profit margin of the iPod touch and iPad, or it will bump the price of the iPad mini and retain a modest profit margin while keeping the pricing balance right across its range of iOS-powered devices.

Enterprise value: A smaller iPad will shake up the 7-inch tablet market for sure. Amazon's Android-powered Kindle is a thin-client designed to consume the company's cloud services. Samsung is a hardware company through and through and leaves Google, the Android mobile operating system maker, to the cloud services with Google Play. Apple is in almost the same position: it's part-hardware maker, part-cloud provider. For the business market, however, the cloud and apps don't matter. Businesses have their own clouds, their own sideloaded apps, and their own infrastructure. 

If Apple nails the $399 price point or less, it will be a short-term fix for Apple, ZDNet's Larry Dignan explains. All eyes will be on Microsoft's Surface -- the true 'business' tablet -- which has yet to make a pricing appearance. If Apple is able to nail down the price to a sub-$399 figure and take on Microsoft at its relatively new game, it can blow Amazon's Kindle at $199 out of the water.

Topics: iPad, Apple, iOS, Tablets

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83 comments
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  • Not price competive!

    If this is right it will sell but opens the door for Google as a) Apple are validating the market for smaller tablets b) Not price competitive!

    From recent research (aka conversations) one of the main myths Google needs to over come is that the Google Store isn't safe! Had a high up business guy at our company tell me the only thing stopping him swapping his iPhone for an S3 is that the Play store is 20% full of malware!
    mollyfud
    • irresponsible press reporting

      That the fault of irresponsible press reporting which does not differentiate between android malware infections and Google play malware.

      99%.of all android problems are be are because users enabled untrusted sources settings and clicked thru the malware warning.

      The reality that neither the sensationalist media, apple or malware software snake oil sellers want you to know, is that if you stick to the Google play store, you will be fine...
      Mark Str
      • Very easy to avoid malware

        just stick to the more used, highly rated user apps. No problem. That's what I've done and have never ever had a problem. I've had my Android phone for two years now.
        laequis
        • That's one option...

          Or you could just get an iPhone
          boone51
      • Ya....

        "users enabled untrusted sources settings and clicked thru the malware warning" - The same can be said for Windows users.
        Gisabun
      • RE: irresponsible press reporting

        Not going to dispute that there is an issue with irresponsible press reporting but do you complain when it's about Apple or do you only consider it irresponsible when it's about Android? The press will do anything they can to get readers and click so most any issue is overblown.
        non-biased
    • It will fail at these price points

      And, this smaller device will be 16:9 and not 4:3 format so current iPad apps will not work correctly on it. Further fragmentation for Apple.
      laequis
      • Totally

        I don't know why Apple didn't think of any of this. Have you tried to contact them to let them know about these overlooked issues?
        boone51
        • Oh yes

          I'm sure if someone called Apple, they would fix the problem right away. :-)
          Gisabun
      • I think the pricing is high as well

        but the simple fact is that we know nothing official regarding pricing or features including the aspect ratio.
        non-biased
    • Agreed.

      Molly has hit this issue on the head for me. I've been anxiously awaiting the iPad Mini, but if these are the price points I see no reason to buy one. The New iPad or perhaps even the iPad 2 will be a more sound investment of my money. I certainly hope this article is off the mark when it comes to dollar signs.
      malamute95
    • we are going to pay whatever ask

      we are loyal.... we are not crappy android people...
      dkaparunakis
      • Spot on

        And we certainly aren't trolling around Apple related articles like children looking through store front windows at Christmas time either.
        boone51
  • High risk?

    Apple has ordered an awful lot of these and without the right price they'll be sitting on them for a very long time. The market is becoming a little too saturated with this kind of device regardless of who makes them. Personally I have absolutely zero interest except in watching to see how badly Apple has misjudged this one.... and I like Apple products.
    bergrrt9
    • The faithful...

      I'm afraid the faithful will step up and buy these by the millions. Price doesn't matter to them, only that it has the Apple logo on it.
      tietchen
      • Here's what that Apple logo represents to consumers

        A trusted brand that's well known for its ease of use, OS and UI consistency, stability, #1 ecosystem, #1 app store that developers still target first, #1 music store (iTunes), #1 in customer service with stores all over the world, the most accessory and aftermarket products to choose from, etc., etc.
        dave95.
        • You are right for most part Dave

          I agree with you on Eco system and other things. Ease of use in iOS is bit far fetched .For most of the people iOS must be the first smart phone device , people learned it by trying or through advertisements or basic gestures(which Apple has patented). Where as Android is different from iOS, so it should be different , you should undergo a learning phase. My friends who were using PC for more than years are struggling a lot with their new Mac, it was too hard for them. So should I discount Mac as the in consistent or not user friendly device?
          magesh_magi1
          • Struggling with Macs

            My experience is exactly the opposite. Anyone who moved from a "PC" (actually, from a Windows PC, as there are plenty others), to a Mac has just one problem: to justify why on Earth did they wait that long and subjected themselves to such peril.

            Further, those who happen to also have another Apple product, an iPod, iPhone or an iPad discover what "integration" means and begin wondering why the company that is touted to be the best software house out there (Microsoft) couldn't figure any of this, as it's after all -- only software.

            As for Android "being different". No, it is not. It's more or less the same (kind) of OS. It's just executed differently and therefore the experience is way different. The devil is in the details. Always.
            danbi
          • Dear People Commenting

            All I have to explain to my users is that the interface was "copied" somehow by windows so everything has to be the same. Open My computer vs Macintosh HD, move folders, copy, save, etc..

            What I think is that most part of the time the people close themselves and make the experience harder o hard just because....

            All my pc users that have moved to Apple you are going to kill them to make them go back to pc.... They just love them... zero cryptic errors... zero today is appearing this message... zero nothing...

            They just love their macs ..... And come on people... come on... it is UNIX..... with a graphic interface...

            Hardware and Software just works... in an elegant interface... consistent through all the products...
            dkaparunakis
          • You can't fierce anyone to overcome mental blocks

            Macs run fully certified UNIX you can easily sudo to control practically anything. The UI is pretty intuitive to me, and my little Mac Air runs all versions of Windows, including Win 8 preview and even runs Android and Ubuntu to boot.
            Hearing supposed techies say they can't figure out iOS or the "problems" people have figuring out a Mac or getting it to do what they want makes me think they want to have problems or deliberately refuse to figure it out.
            I could do the same thing, pretend I couldn't figure out "how to do anything" with Windiws 8, but the truth is if you spend the time and really want to... I just don't like or prefer Win 8, but I appreciate Win 7. I prefer the power and flexibility of OSX and Parallels, though I know I could figure out how to most of the same things on Win7 (except run OSX that is) and even then if I was willing to compromise and spend the time I could hackentosh it. I like the embedded security and control of iOS generally
            Not saying it's for everyone but I feel little patience for self proclaimed techies that can't take the time to look through the settings options on an iPhone then pretend they can't figure anything out, or those that don't bother to learn what a Mac is (UNIX with a GUI and root control and optimized drivers, with powerful emulators for virtually any OS) before proclaiming they can't do something.
            ossoup