Apple might be considering a cheaper iPad Mini model at a price point somewhere between £199 and £249 [$199 and $249], according to an analyst.
Ming-Chi Kuo from KGI Securities suggests the iPad Mini will be a primary focal point for Apple going forward as interest continues to grow in the 7-inch market and Apple has begun losing tablet market share to Android.
However, he believes a premium iPad Mini 2 with a Retina display is among the causes for the company’s product launches being delayed until the Autumn.
Kuo doesn’t seem to be implying a budget iPad Mini will be arriving instead of a premium iPad Mini 2, but thinks it may come first.
‘Prior to iPad mini 2 launch, Apple might roll out a more affordable iPad mini to compete with Android products. To cut costs, Apple might push for lower component prices, use a more advanced process to produce the A5 processor, simplify metal casing production, remove the rear camera, cut storage to 8GB and find more component suppliers to lower costs. We think this cheaper iPad mini retail for US$199~249,’ he said in a note to investors.
If such a device were to appear and subsequently hit the UK market, we’d think given Apple’s previous pricing habits those dollar tags would translate directly into UK pounds.
So, don’t expect a sub-£200 iPad Mini even if this speculation proves to be true. Which it may well not.
But while Kuo believes this may be taking place, he doesn’t necessarily think it’s a move which will pay off in terms of giving a substantial boost to broader iPad sales figures.
That’s a tricky one to call. On the one hand, an iPad Mini at this price would hit that magic mark many Android competitors are currently doing well from – it would be very affordable.
On the other, the significant downgrade in storage, display quality and other key components means it wouldn’t be as competitive as Android devices in the same bracket, such as Google’s Nexus 4.
In other words, it’d be priced to sell well, but not specced to sell well even at that price.
Such a downgrade in hardware is part of Apple’s never-ending quest for big profit margins. Even with the $329 iPad Mini Apple says its profit margins are below the company’s ideal.
Google of course has uniquely changed the game, by leveraging its massive advertising and search revenues through Android and content via the Google Play app store. It’s able to a sell Nexus 7 devices at an incredibly low price point considering the hardware inside and it knows it’ll be able to make more money off its ecosystem.
by pbriden via Featured Articles
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