Apple defends iPad mini's $329 price tag

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Apple defends iPad mini's $329 price tag
Apple on Tuesday introduced iPad mini in the market. iPad mini is a smaller version of its popular iPad as it comes with a 7.9-inch screen but performs the same functions that the full-sized iPad does. The 16GB Wi-Fi version will cost $329 and will go on pre-order from October 26.

Apple iPad mini will compete head on with Google's Nexus 7 and Amazon Kindle Fire HD. (Read the detailed specs comparison of Apple iPad mini vs Google Nexus 7, Amazon Kindle Fire HD and Samsung Galaxy Tab 2 7.0). Both Kindle Fire HD and Nexus 7 are available for $199. In fact many trade pundits were expecting Apple to adopt a similar pricing for their 7-inch tablet.

In its defence, Apple marketing head Phil Schiller thinks that Apple iPad mini is aptly priced. Talking to Reuters, he states, "The iPad is far and away the most successful product in its category. The most affordable product we've made so far was $399 and people were choosing that over those devices. And now you can get a device that's even more affordable at $329 in this great new form, and I think a lot of customers are going to be very excited about that".

When quizzed specifically about the competition Schiller said, "Others have tried to make tablets smaller than the iPad and they've failed miserably. These are not great experiences".

Though a few analysts feel that the $329 price of an Apple iPad mini might sway away the price conscious customers towards rival products, most of them continue to be bullish about this small tablet from Apple's stable. Early estimates indicate Apple will sell between 5 and 10 million iPad mini units before the end of the year.

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