In his latest hack-fest column titled "Here's a New Report On Why Apple Decided To Overcharge For The iPad Mini" Henry Blodget asserts Apple has overcharged for the iPad Mini because:
- Apple can charge this much--its fans are either so brainwashed or so locked-in to Apple's ecosystem that they'll pay anything
- Apple wants to protect its extraordinarily high profit margin
- Apple's "mini" is better than the Google and Amazon tablets
Amazon and Google are giving away their tablets. This isn't my assertion, it is at the very least a fact by Amazon CEO Jeff Bezos, who recently told the BBC "Amazon wants to make money when people use their devices, not when they buy them."
In the same fashion Google is selling it's Nexus 7 tablet starting at $199 to make money over time, via advertising and content. The result is that both products are sold on a cost (or near cost) basis, and Henry Blodget has no clue what he's talking about when asserting Apple is "overcharging" for their iPad Mini.
The opposite couldn't me more true. Apple's iPad Mini, pound for pound is a very reasonably priced tablet. It has a larger screen than the competition, will be 2x - 4x faster than the Kindle Fire HD or Google Nexus 7, deliver at or better battery life, and has front and out facing cameras something neither competitor can claim. Throw in seamless iCloud use, with a host of mature app experiences and is $329 really a stretch and an "overprice"? Not hardly. Rather, Apple's price is dead on aggressive for the value they are bringing to the table.
But let's not leave out the details as the mainstream tech pundits and Mr. Blodget do. $199 for a Nexus 7 delivers only 8GB of RAM. That might have been cute for an iPod touch a few years ago, but for a tablet? Most buyers are opting for the 16GB Nexus 7 for $249. And while the Kindle Fire HD comes with 16GB of RAM for $199, if you want to turn off annoying ads that pop up all over the place, prepare to shell out $20...
Suddenly, Apple's iPad Mini which starts at 16GB isn't the price leap it's being made out to be. I'm going to reiterate this for those slow to catch the big picture. The iPad Mini compared to it's competition is:
- Aluminum vs Plastics
- Large screen
- At or better battery life
- Dual Cameras
- iTunes Music Match, iCloud and 275,000 natively built apps.
Next time you read a Henry Blodget column... Don't.
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