Phil Schiller talks iPad mini price: people pay for quality

By , Oct 24, 2012

I have long insisted that Android people (lots of them, but not all) aren’t accustomed to pay for quality because Google envision Android as an ad-supported ecosystem, an extension of its business philosophy on the web. Some Apple fans were taken aback when Apple priced the iPad mini at $329 rather than $249 or even $199. While analysts believe the current price defends the iPad ecosystem from above and have no doubt the gizmo will be a smash hit, Apple’s head honcho of worldwide marketing Phil Schiller went on the record to defend the iPad mini’s price tag, here’s what came out of him…

Speaking to Reuters, Schiller argued:

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.

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.

Last year, over at 9to5Mac I opined about Android people reluctantly paying for quality.

At $329, the iPad mini isn’t the Nexus 7 or Kindle Fire killer, but it does a great job at containing Google’s and Amazon’s attempts to take the iPad on the mid to high-end with tablets having displays measuring eight or more inches in diagonal.

Schiller yesterday took a jab at Android by dedicating a significant portion of stage time to comparing scaled up apps on the Nexus 7 tablet to the 275,000 native iPad apps in the App Store, all of which work on the smaller iPad without any intervention on part of developers.

“This isn’t just a shrunken down iPad”, said Schiller. “It’s an entirely new design.”

Apple design guru Jony Ive echoes the sentiment in the iPad mini promo clip, saying the device represents a “concentration not a reduction”:

Our goal was to take all the amazing things you could do with the full size iPad , and pack them into a product that is so much smaller. and that’s what we did with the iPad mini.

If all that we had done was take the original iPad and just reduce it, all you would be aware of, was everything that was just missing.

There is inherent loss in just reducing a product in size. And what we did was we went back to the very beginning. And we took the time to design a product that was a concentration of – not a reduction of – the original.

Be that as it may, $329 is still $329.

What do you think, did Apple price itself out of the market for tweener tablets with a $329 iPad mini?

  • Share:
  • Follow:
  • http://twitter.com/rydogg23 Ryan

    My thoughts are that it’s 329 because apple can get away with it. No one can doubt apple makes a beautiful product and one that works perfectly, but 329 for this when you can get a great tablet like the fire for 199…it’s silly. But again, people will buy it. They ALWAYS buy it

    • Johnathan Jennings

      Fire is shit compared to the Nexus 7.

      • http://twitter.com/Jack_maredit Jackson Grong

        Nexus 7 is shit compared with the iPad Mini’s 275,000 apps made just for ipad — not for a mobile phone.

      • Liu Zhenyu

        Are you a sheep? Do you just repeat anything from apple?

      • http://www.facebook.com/DjSkyXII Manuel Pedregal Ballesteros

        Nope but obviously they are true in that aspect…But still thinks its overpriced

      • http://twitter.com/rydogg23 Ryan

        When google drops the 8 gig for 199 I’ll agree. Price is key for me

    • http://www.facebook.com/joe.jonsen Joe Jonsen

      exactly

    • http://www.facebook.com/joe.jonsen Joe Jonsen

      apple alway over prices it stuff by at least 20%

    • Al

      I’m passing on the mini.. and I’m hoping others do the same. To price it at that range is trying to eat up profit. I’m very annoyed with Apple at this point.

      I understand they are in the business of making money, but from the 5th Generation iPod touch to the iPad Mini.. there’s no justifying the price. They can come up with many different reasons… to the Apple loyalist eventually you gotta see through the BULL..

  • http://www.facebook.com/profile.php?id=1332728607 Omar D. Plumey

    $249-299 is a better price point.

    • Johnathan Jennings

      Not for apple. They aren’t like Amazon, they want to make money on their products.

    • http://www.facebook.com/joe.jonsen Joe Jonsen

      you will see them at 299 very soon at best buy..

    • http://www.destroypixels.com/ Nicolas Arteaga

      They will go on that price range for sure once they release the iPad mini Retina

  • http://twitter.com/KraKsX KraKsX

    The price is high, BECAUSE THE INSIDES ARE 2 YEARS OLD.
    Its out of date tech that Apple wants a premium price for.

    Currently from Apple, Its cheaper to buy an iPad 3 then an iPad 2.
    This company has lost focus, on whats important, us.

    • http://www.facebook.com/joe.jonsen Joe Jonsen

      companies tont care about people they care about profits.. apple has no competition at all so they will not change anything the way consumers want

    • thor_molecules

      Thank you, someone gets it. Folks are griping about the price because despite the RDF, IT IS a “shrunken down iPad.”

      There’s literally no other way to describe it. They took an IPad 2 — which is already outdated tech — lopped about 2″ off it an called it a redesign.

      I have zero doubts they will move a lot of units, but lets call it what it is.

    • http://twitter.com/Jack_maredit Jackson Grong

      The A5 is the same processor in the iPad 3th generation( the X stand for more power to run the retina display), so internals are 2 days old. lol

      • http://twitter.com/KraKsX KraKsX

        the iPad mini has A5, not A5X

      • http://twitter.com/Jack_maredit Jackson Grong

        The X stand for quadcore for the retina, the A5X not faster than the A5!

      • http://www.facebook.com/antman217 Anthony Antunez

        Jackson kinda has a point. The only advantage the A5X had over the A5 was the quad core gpu which was needed simply to power the retina display. Otherwise the iPad 3 still did everything at almost the same speeds as the iPad 2 as you can see in many videos comparing the iPad 3 and 2. So as far as performance goes the iPad Mini should still perform almost as well as the iPad 3 and pretty much identical to the iPad 2. And seriously what’s so bad about that, it’s basically a smaller iPad and the iPad is already better than the other 7″ tablets so a smaller one should still do better right?… No?…. ok just down vote me and get it over with.

  • http://www.facebook.com/people/Whathappenedon-Thefishingtrip/100002909187161 Whathappenedon Thefishingtrip

    fire and nexus are shit compared to the iPad.

  • http://www.facebook.com/dany.quirion Dany Quirion

    Its 329$ because its perfect

    • http://www.facebook.com/joe.jonsen Joe Jonsen

      um you are buying a smaller ipad2… for when you should be getting a smaller ipad3 for that price…looolo

      • http://www.iTechBlog.in/ taran

        it’s not that i am defending the price…but you get a better camera,siri,lightning,better ppi,lesser weight,thinner design for lesser price…
        IMO if you are there for ipad2,ipad mini is a better choice…

      • http://www.facebook.com/dany.quirion Dany Quirion

        Why would i get a used ipad 3 with s huge connector bo thx

  • http://twitter.com/_djabrown _djabrown

    I think 249, 279 or 299 would be just unrealistic for Apple. They have a track record of taking the price people expect and move up one price rank. With the iPod touch for example, they could have easily made it 299 or even 279, but they chose 319 instead. Or the Retina MacBook Pro.. 2499 would have been a very good price, given how much work has gone into it. But no, it’s 2699 instead ;)

  • http://twitter.com/JulianRindler Julian Rindler

    when I first heard it’s going to be 329 I thought that’s just pure stupidity on apple’s side, no chance of competing… but I gotta say I that on-stage comparison to the nexus 7 (which I think is really a great tablet) proved me wrong: looks like the iPad mini really is just WAY BETTER than the 200-250 android tablets.

    the only disappointment is the screen resolution, but keep in mind the pixel density is higher than on the iPad 2, curious as to how it looks but I think it will be alright. conclusion: the pricetag is totally justified. if it had a retina screen the price would almost be a joke actually.

  • http://www.destroypixels.com/ Nicolas Arteaga

    I totally loved how Schiller totally SERVED Android showing the differences on the Apps designs

  • http://twitter.com/monster_hazardo Roger Riekki

    They should make it $249, alot more affordable for people.

  • http://twitter.com/KraKsX KraKsX

    Apple should have also released an iPad mini 8gb, and killed with that price then,

  • willie_walk

    I think it’s to high, especially since it has iPad 2 hardware inside. I think $199 would have been a more appropriate price tag. jmo

  • http://twitter.com/FadiJabbour1 Fadi Jabbour

    and why I am gona need quality when the new model will come one a year or 7 months.
    it is not a product for 5 years use.

  • MagicDrumSticks

    If people buy, this, Tim and his crew will be laughing their asses off at how they suckered people into buy inferior tech. Don’t be a sheep.

  • madmaxmedia

    My bad- I just thought it was a smaller iPad!!!!