Tuesday, October 23, 2012

No Price War in iPad mini Debut: Amazon to Benefit


by Holly Shoemaker

As expected, Apple unveiled the iPad mini today, and with a degree of arrogance, Apple showed it had no intentions of entering into a pricing tablet war.

iPad mini Details at a Glance
  • The screen is about two-thirds the size of the iPad at 7.9 inches and half the weight.
  • Apple priced the iPad mini at $329, a price point that lies between the iPod Touch at $299 and the iPad 2 at $399.
  • The device has two cameras, one on the front and another on the back.
Consumers may begin ordering the iPad mini on Friday, October 26, 2012.

Surprise Announcement

In another move that has already started to infuriate users, Apple made a change to its full-sized iPad, which comes only six months after its launch. It announced a new chip, called the A6X that delivers twice the CPU and graphics performance of the A5X, the processor that came out in earlier this year. The next iPad launch was not expected until March 2013. It appears that Apple wanted to steal some of Microsoft’s thunder this week as the new Surface will launch. Consumer may also order the new and improved iPad on Friday.

Concluding Thoughts 

Apple’s move seems confusing from a consumer standpoint. It had the opportunity to up the tablet war. However, Apple’s pricing keeps in line with its thinking – that consumers will pay more for an Apple product, and that the company cares more about profiting from sales of the device, rather than accessories and apps.

Apple’s arrogance could result in a win for Amazon whose expanding Kindle line has tablets and e-readers at price points that should appeal to most consumers. Apple’s stock fell after the announcement while Amazon’s shares rose 53 percent.

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