Tuesday, October 9, 2012

Apple Inc. (NASDAQ:AAPL): Pricing of the iPad Mini would require a lot of thought

While the very existence of the iPad Mini is still in the realms of speculations and rumours, the pricing of the tablet has also entered discussion forums.

According to Investors.com, the pricing of the smaller version of the popular iPad, could be a problem for Apple Inc.(NASDAQ:AAPL) as it may clash with that of the iPod Touch.

An upgraded iPod Touch was released last month along with the new iPhone 5 and the device with a 4 inch display starts at $299 each.

There have been speculations that the iPad Mini with a 7.85 inch display may be priced at $299 or even lower.

The argument then is that the iPad Mini will be priced on par with the iPod or it has to be higher - since it is unlikely that the company will be pricing it lower.

According to Sterne Age analyst Shaw Wu, who spoke to Investor.com, it is most likely to be priced at $349.

The regular iPad 3 which has a 9.7 inch display screen retails at a starting price of $499 while the older version sells for $399.

Since there cannot be two competing products in the same category at the same price, it is likely that the company will discontinue the iPad 2 after the launch of the Mini.

The iPad 2 is however a hugely successful product and in order that the products do not clash the company may also price the Mini somewhat lower or maybe the same as the iPod Touch.

The iPads and iPod Touch are totally different lines of products and at the same time it is unlikely that each of them would cannibalise the sales of the other.

The iPod is an entertainment device compared to the iPad which is used for computing.

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