Apple News, Analysis and Podcasts

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?
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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:
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Apple can charge this much--its fans are either so brainwashed or so locked-in to Apple's ecosystem that they'll pay anything
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Apple wants to protect its extraordinarily high profit margin
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Apple's "mini" is better than the Google and Amazon tablets
Or...
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On October 23rd Apple CEO Tim Cook will most likely unveil the long-awaited iPad Mini. While this new product will most likely expand Apple's dominance in the tablet market there is something more important happening on the 23rd.
This event marks Tim Cook's fourth time making a presentation as Apple's CEO announcing a major new product. There was the:
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Apple announced to select media an October 23rd, Special Event with the comment "We've got a little more to show you". However, Apple wont' be holding the event on the Cupertino campus, nor will the event take place at the Buena Vista Performing Arts Center in San Francisco. Apple has instead chosen a larger auditorium, the California Theatre in San Jose.
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Jeff Bezos desires to become the next Steve Jobs. He is quickly moving his company, Amazon, down a path that is competing directly with Apple. The first step was to create the Kindle book reader. At first, the Kindle didn’t compete directly with Apple, but it did turn Amazon from just a retailer into a hardware manufacturer and a retail company. The Kindle Fire, a seven inch LCD tablet was a big step in Apple’s direction. Amazon has continued to improve their Kindle inline up with annual updates, but they are not done yet.
Amazon is now looking into improving its hardware development side. A clear sign of this is news they are wanting to buy TI’s mobile chip division. Right now, Amazon relies on outside help for much of its hardware designs. This purchase would change that and owning a chip designer division would be a big step into the hardware world. It would be a major sign that Amazon is bringing hardware design in-house and making it an important part of the company. This may be Amazon’s first hardware purchase, but it won’t be its last.
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For the past four years Apple's profit margins have continued improve while mystifying the experts. In March 2008, Apple reported a 13.9% profit margin for the quarter. Now compare that to the March 2012 quarter where Apple reported a 29.6% profit margin. It seems nearly impossible with increasing competition that is specifically targeting Apple, and with pricing pressures at every turn, that Apple can continually grow its profit margin.
To make matters worse China often boosts their minimum wage rate by 30% at a time. In fact, China has done this numerous times during the last decade. So how has Apple been able to continue to grow its margins?
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Steve Jobs began the talking point and Timothy Cook has been all to willing to carry it forward. What am I talking about? The term "post-PC era" of course.
While most people have heard this phrase and assume Jobs, and now Cook, meant people are purchasing tablets and smart phones over desktop PCs, they have it mostly right. However that interpretation is only a hardware evaluation of the term. There is another side to the quote than that — a software side. If Apple were really honest, what they would say is that we have entered the post-Microsoft era.
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The 7-inch tablet space is officially crowded, but I use the word "tablet" with a grain of salt. Beyond Microsoft's Surface vapor-ware, no one is capable - or willing - to take on the iPad in that true tablet 10-inch size. More than ever, this fall is the perfect time for Apple to re-define this not-so-tablet 7-inch space for what it is - an entertainment product. Apple can take action and define this small-screen space as an iPod touch world, not a tablet market.
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This past weekend I spent some time thinking about the two presentations in June by Apple and Microsoft. Apple's WWDC Keynote was once again on stride, showing break-through hardware with the MacBook Pro Retina Display, OS X Mountain Lion and iOS 6. All three demonstrate Apple isn't lost, wandering in the desert, but has a plan and knows where it wants to go next. However, Microsoft's announcement manifests how much trouble the software giant is in.
Steve Ballmer did his best to put a smiley face on a project that is clearly late to market. The announcement of Surface would've been revolutionary if Ballmer made it in 2008 — even 2009. While the number three is usually good to Microsoft, Microsoft's third attempt at developing hardware and software together (Zune, Xbox and now Surface) will ultimately fail. The reason why is pretty simple: the market has passed Microsoft by.
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As HTML 5 continues to evolve, web developers are liking their new tools more and more. The question is whether the HTML 5 standard will ever be completed and browsers adjusted to tackle this brave new world.
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