Shocking news. Tech pundits decry the iPad mini’s $329 price tag while admitting Apple will sell tens of millions of the diminutive device.
What’s wrong with $329 as the entry price for an iPad mini? Absolutely nothing. It’s affordable, even for those attracted to the inferior tablets from Google and Amazon. They’re priced less because both the Nexus 7 and Kindle Fire HD have fewer features.
Besides the tech media intelligentsia, who else hates the $329 iPad mini price tag?
Google and Amazon.
Say what, Kate?
How much will you love that Android-infested Nexus 7 tablet when Google wakes up and stops making the device? They wouldn’t do that, would they?
How much will you love that Frankendroid-infested Kindle Fire HD tablet when Amazon wakes up and stops making the device? They wouldn’t do that, would they?
Both Google and Amazon are on record as saying their 7-inch tablet-like devices are sold at cost, probably somewhere just over $200 for the entry level models.
Is it any wonder that Amazon lost money this past quarter? Is it any wonder that Google’s financials are the worst in many years?
Let’s compare the struggling internet search giant, and the struggling online store with their main competitor, Apple.
Apple’s latest financials display another record 4th quarter. $36-billion in revenue, and over $8-billion in profit. Apple even took the unusual step of divulging how many iPhones and iPads were sold in the recent quarter.
Well, actually, that’s usual for Apple. Google and Amazon won’t say how many Android or Androidish tablets they sold. Why would Google and Amazon hate Apple’s $329 iPad mini price tag?
After all, shouldn’t buyers flock to their flimsy, plastic devices because of the price differential? Remember, until the iPad mini, Apple’s lowest priced iPad was the aging iPad 2 at $399. The iPad 3 was $499. Yet, Apple managed to sell more tablets than all the tablet manufacturers combined, including Google and Amazon.
If they were losing money hand over fist on their tablets when the iPad was priced at $499, how much more will customers flock to a full-on iPad in everything but size for a mere $329?
How much longer will beleaguered Google and Amazon stay in the tablet business? Ask yourself, ‘How much of a bargain is a $200 tablet if the company that makes it stops making it because they can’t make money selling it at that price?‘
Wait. There’s more. Try a few notes on On Lust And Stupidity: How Apple’s iPad mini And iMac Fool The Tech Intelligentsia. Or, a little more analysis in Prosperity vs. Bleeding: How Apple Compares To Google And Amazon In Phones And Tablets.