On Tuesday, Apple Inc. (AAPL) introduced the widely rumored iPad Mini. Although the iPad mini was exactly what users were expecting, a smaller screen, a full sized experience, many are still disappointed with the pricing of the device, which starts at $329. Users expected AAPL to introduce a device in the $199-$299 price range, usually what Android tablets are selling for in the market.
“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,” Schiller said.
“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,” Schiller said.
Apple’s competitors such as Google and Amazon are mainly content based companies and are looking to make money off of the services that they offer, selling the device as a secondary accompaniment in order to sell content and advertising. However, Apple is selling the hardware and software first, and is looking to give customers an experience, rather than to simply sell content. As the holiday season approaches, it will be interesting to see how Apple’s iPad mini plays out with customers and if the pricing will affect the sale of the device in the long run.