Monday, September 17, 2012

Apple may have painted its iPad mini pricing into a corner with the new iPod touch

Recent rumors had Android tablet makers concerned. There was speculation that Apple's new iPad mini, a 7.85-inch smaller sized iDevice, might come in at the bargain basement price of $249.

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Even Android fans admitted that such a price would virtually kill any competition from Android tablets. It doesn't appear, though, that will happen.

Apple seems to have painted itself into a corner with its pricing on alternative products, such as the iPod touch. The brand-new fifth generation 4-inch iPod touch starts at $299, and it would seem, C|Net believes, that the iPod touch price point means that the iPad mini couldn't be priced lower than $349.

It makes sense. How could you charge less ... or even the same amount ... for a device that's considerably larger and more powerful? To be honest, we can think of a couple of ways, but whether or not Apple would go those routes.

For one, the entry-level iPod touch starts with 32GB of storage. If Apple shipped a 16GB entry-level iPad mini, a $299 price could fit. It's already rumored that the iPad mini will have a non-retina display, which would reduce cost.

One could also look at it slightly differently. While the fifth-generation iPod touch will start at $299 with 32GB of storage, the fourth-generation iPod touch continues to be sold. It comes with either 16GB for $199 or 32GB for $249.

The iPad mini could slot in between those two different device lines, the fourth- and fifth-generation iPod touches, at $249.

You can bet that Android tablet makers are hoping that the price point will be $349 rather than $249. Apple has a history of surprising folks, though.

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