Apple 'planning to sell £150 iPad Mini AT A LOSS in order to kill off Android tablets'

[DVTimes]

Apple is planning to launch an assault against the burgeoning Android tablet market by releasing an 'iPad Mini' - at a loss-making price of around £150, according to new claims.

The bargain-basement priced tablet will even feature the same 'Retina' display featured on its big brother, bringing the same 3.1million pixels to a smaller 7-8" display.

Sources told Apple fansite iMore that the aggressively-priced tablet will launch in October this year, with Apple potentially selling the sub-$250 tablet at a loss in order to leave no room for competition.

With Apple sitting on cash reserves of $100bn, the tech giant should at least be able to stomach such a move financially.


iMore reported: 'Today's claim says that Apple is going to step-up the pressure on Android tablet manufacturers with an iPad mini that will sell for a surprisingly low $200-250.

'That's a bit hard to accept in the light of the other major claim this rumor makes, that the iPad mini will keep the full-sized iPad's 2048x1536 resolution.

'If this is true, Apple might have to take a serious cut to its margins, if not sell the mini at a loss. Considering the kind of cash Apple has on hand, though, it might be willing to take the hit just to help kill-off competition from Android tablets.'

If the iPad sells for $250 in the States, that would translate to £150 in the UK, although whether Apple would respect currency rates is up for debate.

With the screen as a premium feature, it is likely sacrifices will be made in other parts of the tablet, such as reduced storage space of, for instance, 8GB for your apps, videos and music.

This will likely cause issues for users as that amount of space will be used up quickly, marking this out as very much a budget tablet.

http://www.dailymail.co.uk/sciencete...d-tablets.html

[nico-t]

A dailymail link from dvtimes. How surprising.

[djroof]

interesting move...

[Barefootsies]

Originally Posted by nico-t

A dailymail link from dvtimes. How surprising.

[Chosen]

Cool story...

[candyflip]

It says iPad Mini. Nothing called "mini" is going to kill off Android tablets.

[AllAboutCams]

ill buy one even if it was smaller the ipads are good for surfing the net quickly

[BIGTYMER]

Cool! Will make awesome stocking stuffers.

[tony286]

That comes out I will sell my ipad 3 , I mostly read and it gets real heavy and the resolution will be even better for reading.

[DVTimes]

Is an Ipad mini not a itouch?

I wonder if it a clever marketing thing as it may put people off buying any till Oct. But the rummor is that the iphone 5 is out in Sept, so mabe its a clever way to stop people buying till it comes out.

[OY]

Just another reason why I do not own a single Apple product. I can't stand companies that practice unfair competition by 'giving away' their products to create an advantage over their competition. Too many companies does this shit, also within our own industry - pathetic morals imho.

[AllAboutCams]

Originally Posted by OY

Just another reason why I do not own a single Apple product. I can't stand companies that practice unfair competition by 'giving away' their products to create an advantage over their competition. Too many companies does this shit, also within our own industry - pathetic morals imho.

What's next itube.com

[grumpy]

not allowed. Cartel law will be in place.

[raymor]

I wonder how much price will matter. Some people like living in the Apple universe, with all the Apple stuff nicely integrated. Other people like the openness and freedom of the standards based Android, which can interoperate with anything. Someone GAVE us an Apple device and we gave it away because we'd rather have the freedom than to be locked into Apple, even when Apple was free.

[ruff]

They won't kill off Android, but they will shoot themselves in the foot and cannibalize their own sales. Now that Jobs is gone, they are getting back into that corporate mentality and greed is setting in. Fuck Apple.

[nico-t]

Originally Posted by ruff

They won't kill off Android, but they will shoot themselves in the foot and cannibalize their own sales. Now that Jobs is gone, they are getting back into that corporate mentality and greed is setting in. Fuck Apple.

lol. Now that jobs is gone? Every company is like this and jobs was like this too, who are you kidding.

[MarkDeus]

Cool, might buy one.

my Ipad2 served as a coaster. it's the most useful thing I could find to do with it. But just a little too expensive.

[Sly]

Android people seem to like Android, as Apple people seem to like Apple. They will probably grab some of the Kindle crowd, but I don't see Android products going anywhere. Possibly slight consolidation, but we are talking about one company (Apple) against multiple other companies over what is essentially the same product. One, if not more, of those Android companies will do the same thing. A cheap tablet. Amazon already has and it has been wildly successful.

[Choopa Phil]

they wouldnt cannibalize any sales, samsung does the same thing with tablets, they make a 10" and a 7" personally id like the Mini better, if i need a 10" screen id rather just grab my laptop its a lot more comfortable to use than a full sized Ipad

[DVTimes]

they may make more from the app store anyway.

[candyflip]

Originally Posted by grumpy

not allowed. Cartel law will be in place.

How is it not allowed? Microsoft, Sony and Nintendo always sell there consoles at a loss (in the beginning) making up their profits on copies of games sold.

I don't see how this would be any different. They're subsidizing the cost based on future software sales. Makes sense.

[jimmycooper]

Originally Posted by OY

Just another reason why I do not own a single Apple product. I can't stand companies that practice unfair competition by 'giving away' their products to create an advantage over their competition. Too many companies does this shit, also within our own industry - pathetic morals imho.

Do you refuse to dine at Mexican restaurants because you don't like how their practice of giving away free chips and salsa makes you thirsty for margaritas and because of how it gives them an unfair advantage over the bodega down the street with a rack full of unsold Tostitos?

[Sly]

Originally Posted by candyflip

How is it not allowed? Microsoft, Sony and Nintendo always sell there consoles at a loss (in the beginning) making up their profits on copies of games sold.

I don't see how this would be any different. They're subsidizing the cost based on future software sales. Makes sense.

Not to mention, Amazon already does the same thing.

[Tom_PM]

They're really going to sell a mini pad and not say how absorbent it is? Come on..

[jimmycooper]

Originally Posted by candyflip

How is it not allowed? Microsoft, Sony and Nintendo always sell there consoles at a loss (in the beginning) making up their profits on copies of games sold.

I don't see how this would be any different. They're subsidizing the cost based on future software sales. Makes sense.

Exactly. It's a very basic strategy.

http://en.wikipedia.org/wiki/Loss_leader

It never ceases to amaze me how little so many people on GFY seem to know about the world and how it works. I find it fascinating.

[bronco67]

They couldn't give it to me for free. As much as I think the iPad is a great product, and probably better than any other tablet -- I can't buy into the Mac ecosystem thing. I like buying my music from Amazon, and I don't like products that have to work in a closed environment.

[Sharky]

Originally Posted by DVTimes

they may make more from the app store anyway.

EXACTLY! They could give the ipan mini away for free and still see a huge revenue increase and overall profit growth from app sales alone.

[alias]

Originally Posted by bronco67

They couldn't give it to me for free. As much as I think the iPad is a great product, and probably better than any other tablet -- I can't buy into the Mac ecosystem thing. I like buying my music from Amazon, and I don't like products that have to work in a closed environment.

[JP-pornshooter]

interestingly i think many consumers would consider it due to the smaller size.

also worth noting that the kindle fire was sold for price under cost with the thought of making up losses by selling amazon products, movies, books and other content.

[96ukssob]

they will make so much more back from the iTunes store it wont matter

[Monique Niccole]

Originally Posted by DVTimes

they may make more from the app store anyway.

This.

Any money they lose on the actual device would be made up in the Apple app store, iTunes store, and iBooks store which all sit right there on the home screen.

It gets people into the "Apple universe" at a really attractive price point and eventually they become brand loyal, stepping up to a full-size iPad, new iPhones, Apple TV, Macbook, etc etc and buying apps, books, and music all along the way.

If the rumor is true, then they're building a potential Kindle killer. Just look at all the emphasis Apple has put on books lately.

[2MuchMark]

Originally Posted by OY

Just another reason why I do not own a single Apple product. I can't stand companies that practice unfair competition by 'giving away' their products to create an advantage over their competition. Too many companies does this shit, also within our own industry - pathetic morals imho.

In that case, you should throw out your Microsoft Xbox 360. Microsoft loses about $100.00 on every unit but makes make 100 times more on software and licensing. Apple most definately makes a killing on software, iTunes, music, movies and ibooks for their devices.

This practice is not uncommon. It's called a loss leader, and the best example of this is the Staples line of stores. Every summer they drop prices on certain back to school items to well below cost and mark-up other items.

The worst of them all is Futureshop and Best Buy. They don't sell below cost but their markup on TV's is only around 4% to 7%, but they try to sell the customer extremely overpriced shit such as Monster Cable accessories and extended warranties. Don't believe me? Go to a Bestbuy and pretend to be interested in one of their largest TV's. Play dumb and let the salesman do his thing. You won't believe it.

[crockett]

Pretty sure they can't legally do that in the US. There are laws in place that stop that kind of monopoly from being created by unfair business practices. At least there used to be, but who knows now days when the govt has been bought and sold 10 times over.

[RandazzoXXX]

Originally Posted by tony286

That comes out I will sell my ipad 3 , I mostly read and it gets real heavy and the resolution will be even better for reading.

If all you use it for is reading than Kindle would have been a much better bet.

[RandazzoXXX]

Originally Posted by crockett

Pretty sure they can't legally do that in the US. There are laws in place that stop that kind of monopoly from being created by unfair business practices. At least there used to be, but who knows now days when the govt has been bought and sold 10 times over.

It's NOT unfair business practice, as others have already pointed out. It's called a loss leader. ALSO this will benefit consumers because the prices of the other tablets will drop as well. Remember how expensive the plain kindle was before the original Ipad launched?

[ruff]

Originally Posted by nico-t

lol. Now that jobs is gone? Every company is like this and jobs was like this too, who are you kidding.

True enough, but Apple could have been a big force in the computer market including enterprise if they had gotten competitive with their prices years ago. They got lucky with cell phones. They like to call themselves a software company, but they just make doo-dads for kids. Remember that ad about 1984 a long time ago? Those people became the Apple army. Geniuses every one of them.

[Scott McD]

[Evil Chris]

Commodore 64 will be a bargain after this!

[lucas131]

oh fuuuck, sig spot