Three Guys and a Podcast

Three Guys and a Podcast: Apple News & Analysis

October 25, 2012 at 3:57pm Pacific Time
by: E. Werner Reschke
Categories: iPad, Review

iPod touch, iPad mini, iPad 2 price-comparison

On Tuesday October 23rd Apple launched the iPad mini. The base model comes with 16 GB of RAM and is priced at $329 USD. The question we have though is with all the beauty this little mini brings to the party, did Apple error on pricing it at $329?

On one hand the iPad mini pricing works well in Apple's line-up.

iPod touch (4th Gen) $199 USD
iPod touch (5th Gen) $299 USD
iPad mini $329 USD
iPad 2 $399 USD

Again, this pricing makes perfect sense in Apple's line-up. The new iPad mini falls neatly between the iPod touch (5th Gen) and the iPad 2. it seems like this is the right play, but is it? 

Other tablets about the same size are significantly cheaper — Amazon's Kindle Fire starts at $159 and Barnes & Noble's Color Nook begins at $149. That said are these tablets really in the same class as iOS devices? Also Amazon president Jeff Bezos admits that at $159 Amazon isn't making any money. Amazon's strategy is clearly is to make money selling software, movies and books — not by selling hardware. One has to wonder if Amazon will be able to compete hardware-wise with current and future iOS devices if its sole source for revenue is software sales?

While $329 USD might seem high comparatively to other tablet options, it really is a great price for a great device. If you want the best, you often have to pay a little more. The older I get the more the saying "You get what you pay for" rings true.  While $329 twice as much as the Kindle Fire or Color Nook costs, these products are all under $500. Most people who have $150 to spend on a tablet, will be able to find $329, or if not, $299 or if not $199 to get the best hardware and the best OS. It's not like the old-days when comparing PC at $800 verses a Mac at $1,600.

So while many will gripe, complain and say it isn't worth it or that the new iPad mini is overpriced, we think Apple did it right. Now users have a full range of iOS options to choose from like they do with the Mac OS X platform. Put one in the plus column for Tim Cook.

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