Tim Cook: iPad Mini Priced 'Aggressively'

During Apple's fourth quarter earnings call today, CEO Tim Cook explained the company's pricing philosophy for the iPad mini in some detail. The following is a portion of our rough transcript:

When we set out to build it, we didn't set out to build a small, cheap tablet. We set out to build a smaller iPad that offered the full iPad experience. The difference between us and the competition is profound. 35% larger screen than 7" tablets. 2 great cameras. Fastest communications with dual bank Wi-Fi. Fit and finish of our precision enclosure is breathtaking when held in your hands. That's what we've done, the iPad mini has higher costs and gross margin is significantly below our corporate average. Height of the cost curve, but we want to make a large number and we're going to work to try to get down the cost curve and get more efficient with manufacturing as we've done with our other products.

Ipadmini

One of the things we try to do is to create a product that people will love for months and years and continue using. That's what iPad Mini is designed to do. You can see that more broadly on iPad by looking at the usage statistics. Over 90% of web traffic from tablets is from iPads. Apple will not make a product that somebody may feel good about for the moment, but then won't use when they get home. That's not the experience we want our customers to have. I would encourage you to use an iPad mini and I don't think you'd be using anything other than an iPad once you do that.

Related Roundup: iPad mini 5
Buyer's Guide: iPad Mini (Don't Buy)

Top Rated Comments

dukebound85 Avatar
109 months ago
I disagree Timmy boy

But I expect nothing less than you to defend your company's price points regardless.
Score: 47 Votes (Like | Disagree)
FlameofAnor Avatar
109 months ago
Just not sure why one would get this over iPad 4

Are you unable to see the differences between the two versions, or are you just unable to imagine other people having different requirements that you?
Score: 44 Votes (Like | Disagree)
FlameofAnor Avatar
109 months ago
A bit surprised by the defensive tone.

A simple, "unlike our competitors, we don't make crap", should've been sufficient. ;)
Score: 38 Votes (Like | Disagree)
impulse462 Avatar
109 months ago
I feel like the 2nd or 3rd generation of this product will be worth getting, but as it is right now, I'm not sure if its worth 329. Maybe for some people, but not me.

They're definitely gonna put a retina display next year.
Score: 34 Votes (Like | Disagree)
mixel Avatar
109 months ago
Loads of people will buy this over ipad4 because of size alone.

It's mad how so many forum posters are obsessed with specs to the extent they forget about practical day to day considerations.
Score: 32 Votes (Like | Disagree)
Big Bone Avatar
109 months ago
"we're going to work to try to get down the cost curve"

How about they start with selling the ones with more memory cheaper. It's preposterous the amount they charge for a 16 gb increase when it only costs them a few bucks more. That is a greedy attempt at ripping off their customers and puts a bad taste in my mouth concerning Apple products.
Score: 23 Votes (Like | Disagree)

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