Apple Considering Lower-Priced iPad Mini at $199-$249?

Along with his recent research note addressing Apple's notebook launch plans, KGI Securities analyst Ming-Chi Kuo has also published a note examining Apple's iPad prospects.

In particular, Kuo looks to the iPad mini as the future of the company's iPad portfolio, but with Apple's efforts to bring a Retina display to the device said to be pushing a launch back to the fourth quarter of this year, he suggests that Apple may be looking at a lower-priced iPad mini.

Prior to iPad mini 2 launch, Apple might roll out a more affordable iPad mini to compete with Android products. To cut costs, Apple might push for lower component prices, use a more advanced process to produce the A5 processor, simplify metal casing production, remove the rear camera, cut storage to 8GB and find more component suppliers to lower costs. We think this cheaper iPad mini retail for US$199~249.

Kuo does not believe that such a device would offer a significant boost to Apple's overall iPad sales, but it could help stave off erosion at the low end of the market at the hands of cheaper Android-based tablets.

ipad_mini_white_side
The $199-$249 price range is one that many potential customers had hoped Apple would be able to hit with the original iPad mini, but the company surprised many by introducing the iPad mini starting at $329. Even at that pricing, Apple has noted a number of times that the iPad mini's profit margins are below the company average.

Apple is said to be pursuing a similar strategy for the iPhone, working on a lower-cost iPhone with a polycarbonate shell rumored for launch later this year.

Overall, Kuo sees relatively small sales growth for the iPad in 2013, with the full-size iPad being cannibalized by the popular iPad mini and the upgraded iPad mini with Retina display not debuting until late in the year.

With Android tablets also beginning to gain footholds in some markets and driving Apple's estimated share of the tablet market below 50% in recent quarters, Kuo expects that Apple will remain competitive but see relatively slow growth until the launch of the Retina iPad mini.

Related Roundup: iPad mini
Buyer's Guide: iPad Mini (Caution)
Related Forum: iPad

Top Rated Comments

siurpeeman Avatar
138 months ago
i could see the current mini dropping to $229, and the new mini taking over the $329 spot.
Score: 50 Votes (Like | Disagree)
darwynn Avatar
138 months ago
Apple will probably just continue selling the previous generation mini at a reduced price when the new ones are released.
Score: 32 Votes (Like | Disagree)
Lancetx Avatar
138 months ago
iPad sales were up 65% YoY in the 1st quarter, so price apparently isn't an issue.
Score: 23 Votes (Like | Disagree)
reiggin Avatar
138 months ago
In other news, Mercedes is considering a compact econo sedan to compete with Kia and Rolex is considering a line of slap watches.
Score: 12 Votes (Like | Disagree)
AppleScruff1 Avatar
138 months ago
If it sells for $229 it will be Apple's best selling iPad. Sales of the full size will fall drastically, IMHO. People will buy because of price.
Score: 12 Votes (Like | Disagree)
aheying7 Avatar
138 months ago
There is absolutely no way they would sell an 8GB device again. My sisters's iPhone 4 fills up with the size of iOS alone and like 2 apps.

And I don't think they would take out a rear camera.

The current iPad mini will stick around for a long time at a lower price point....just like the iPad 2.
Score: 11 Votes (Like | Disagree)

Popular Stories

apple card 1

Apple Ending Apple Card Partnership With Goldman Sachs

Tuesday November 28, 2023 3:09 pm PST by
Apple is ending its credit card partnership with Goldman Sachs, according to The Wall Street Journal. Apple plans to stop working with Goldman Sachs in the next 12 to 15 months, and it is not yet clear if Apple has established a new partnership for the Apple Card. Apple and Goldman Sachs will dissolve their entire consumer partnership, including the Apple Card and the Apple Savings account....
ios 17 namedrop

Police Departments and News Sites Spreading Misinformation About How iOS 17 NameDrop Feature Works

Monday November 27, 2023 5:11 pm PST by
Apple with iOS 17.1 and watchOS 10.1 introduced a new NameDrop feature that is designed to allow users to place Apple devices near one another to quickly exchange contact information. Sharing contact information is done with explicit user permission, but some news organizations and police departments have been spreading misinformation about how functions. As noted by The Washington Post,...
Apple Logo

Apple Discontinued These 5 Products This Year

Monday November 27, 2023 7:03 am PST by
As the end of 2023 nears, now is a good opportunity to look back at some of the devices and accessories that Apple discontinued throughout the year. Apple products discontinued in 2023 include the iPhone 13 mini, 13-inch MacBook Pro, MagSafe Battery Pack, MagSafe Duo Charger, and leather accessories. Also check out our lists of Apple products discontinued in 2022 and 2021. iPhone Mini ...
iOS 17

iOS 17.1.2 Update for iPhone Likely to Be Released This Week

Monday November 27, 2023 8:24 am PST by
Apple will likely release iOS 17.1.2 this week, based on mounting evidence of the software in our website's analytics logs in recent days. As a minor update, iOS 17.1.2 should be focused on bug fixes, but it's unclear exactly which issues might be addressed. Some users have continued to experience Wi-Fi issues on iOS 17.1.1, so perhaps iOS 17.1.2 will include the same fix for Wi-Fi...
iOS 17

Everything New in iOS 17.2 Beta 4

Tuesday November 28, 2023 12:18 pm PST by
Apple is wrapping up development on iOS 17.2, with the update expected to come out in December. While we're getting to the end of the beta testing period, Apple is still tweaking features and adding new functionality. We've rounded up everything new in the fourth beta of iOS 17.2. Default Notification Sound Under Sounds & Haptics, there's a new "Default Alerts" section that allows you to ...
All New CarPlay Five New Features Article 2

What to Expect From All-New CarPlay, Still Listed as Coming 'Late 2023'

Tuesday November 28, 2023 7:44 am PST by
At WWDC in June 2022, Apple previewed the next generation of CarPlay, promising deeper integration with vehicle functions like A/C and FM radio, support for multiple displays across the dashboard, increased personalization, and more. Apple's website still says the first vehicles with support for the next-generation CarPlay experience will be announced in "late 2023," but it has not shared...
Google Drive

Some Google Drive Users' Files Have Mysteriously Vanished

Tuesday November 28, 2023 3:55 am PST by
Google Drive users have been warned not to disconnect their account within the Google Drive for desktop app, after a spate of reports of files going missing from the cloud service. Alarm bells began ringing last week on Google's community support site when some users reported files mysteriously disappearing from Google Drive, with some posters claiming six or more months of data had...