iPad Mini: 8 Rumours We Expect To Come True

3. The Price

We can probably expect the simplest unit with the lowest specs to be available at about £200, up to the top level of between £450 and £500 for the 64GB version. At that price point, the Mini will be more expensive than both versions of Amazon€™s Kindle Fire (standard £129, and higher spec HD version £159,) but Amazon have said they are consciously selling at a loss to sell more, with the shortfall made up through library sales. Some bloggers have suggested that Apple will effectively cannibalise their own sales - especially for the new iPod Touch - given the expected lower price for the low-end Minis, but John Gruber has the answer to that question:
I see several things wrong with that line of thinking. It€™s true that smaller generally implies cheaper, but miniature carries a premium.1 The 13-inch MacBook Pro is smaller than the 15, and thus cheaper. The 11-inch MacBook Air is smaller than the 13, and thus cheaper. But the iPod Touch isn€™t just smaller than the iPad €” it€™s miniature. Gadget prices tend to follow a U-shaped curve: big is expensive, small is cheap, miniature is expensive. The iPad (3) is near the beginning of the curve. The iPhone and iPod Touch are at the end. This new smaller iPad will be in the middle.
The two products might be both Apple products, but they aren't anything alike, and Apple will benefit from sales either way, even if some customers choose based solely on price. Chances are, though, they won't.
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