Tablet manufacturers have failed to race with Apple in the $400 segment. A new mini iPad priced below $300 is only expected to make worst nightmare for the competition.
Analyst Sterne Agee with Shaw Wu said a smaller iPad may be competitors worse nightmare for tablet makers. He said competitors are already stressed to struggle against the Apple iPad2 for $399 and $499 for the new iPad; Apple is striking an even low price tag will increase its share in the tab market.
The major question is whether it will accept lower margins to make the $199 tag point for its competitors, like the Amazon kindle fire HD, Google Nexus7 – Wu said.
He doesn’t think Apple wants to touch the $199 tag point to match Amazon and Google 7-inch tablet. Wu thinks Apple may possibly sell its iPad mini for approximately $350 & it would still be a hit.
Apple already has a product price range in $199 with an iPod touch & iPad2 in $399. Wu thinks an Apple iPad mini in price range of $299 or $349 makes the right choice for the Apple company.
The iPad mini is likely to feature a smaller size than the original iPad, with a monitor of 1024 x 768 pixels that may permit it to run native iPad2 apps with out changes additionally anticipated options like entrance & again dealing with digital camera, new Lightning connector like on the brand new iPhone 5 and most up to date iPods.