Friday, August 31, 2012

Apple Inc.(NASDAQ:AAPL) cheaper iPad Mini could `crush’ the competition

Apple Inc.(NASDAQ:AAPL)’s iPad Mini is expected to pose stiff competition to Google’s Nexus 7, especially if the Cupertino company prices it aggressively.

According to analysts who are tracking the sector, anything between $249 and $299 would be enough to “crush the competition” as well as give it enough room for a profit.
The answer comes down to whether Apple wants to "crush the opposition" or just maintain dominance, Rhoda Alexander, an analyst at IHS iSuppli, told CNET
 "And the price point would be how they do that," she said.
The maximum that Apple is expected to charge for the iPad Mini is $349, and that would come with a 4G LTE network, Alexander said.

The fact that the competition is already gearing up for the launch of the iPad Mini, is attested to by the fact the Google has become aggressive with its Nexus 7, even using its usually uncluttered home page to push the product.

The ad also stresses on the price of the product at $199. The Google Nexus 7 was competing with the Amazon Kindle Fire, but now it would find a new competitor in the iPad Mini.
"The input I'm getting from the supply side is that [Google] has actually raised the quantity of orders being built this year," Alexander said. "We see it on the order of five to six million in 2012 or maybe even a little more than six million."
However the Nexus has a limitation in that it works only on a 3G Wi-Fi network that restricts it sales in Asia, where Wi-Fi is not prevalent. In contrast, a smaller, cheaper iPad with 3G/4G capability in Asia would be an extremely attractive product, she said.

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