iPad 4 Exchange Deal, iPad Mini Pricing Reasoning

Apple had a unique opportunity to deliver a knockout blow to small Android tablets with the iPad mini. Let’s make no mistake. The device is beautiful and has a lot going for it. But its price does mean that companies such as Google and Amazon will be able to differentiate their products without having to push their prices too low. In fact, the Nexus 7 already holds its own very well against the iPad mini (on paper).

Many experts had assumed that Apple was going to offer $199 iPad Minis. That was never going to happen. Apple is not a budget brand. Going with such a strategy would be like opening Pandora’s box. The iPad mini is competitive at $329 but it does give Apple enough profit margin to work with. The price could always come down anyway. It is always easier to ask customers to pay less than more.

This pricing scheme by Apple could prove a tad bit confusing for customers though. After all, the iPod Touch is going for $299 while the iPad 2 will be available for $399. It is highly doubtful that people will get all 3 devices in $299 – $399 price range. It will be interesting to see how the introduction of this gadget will affect Apple’s sales numbers.

Speaking of iPads, many of us adopted the iPad 3 when it came out earlier this year. It just happens that the device is now outdated after only a few months. Apple is not going to send all early adopters new iPads. But those who have purchased their iPad 3 in the past 30 days (most of whom probably don’t read Apple related blogs), will be able to upgrade to the iPad 4. The fourth generation iPad is superior to the previous iPad. But we are not sure it is worth upgrading to if you got your Apple tablet just a couple of months ago. It never hurts to visit an Apple store in your area to find out what they may be willing to do for upset iPad 3 owners though.