Despite giving the iPad mini a price tag of £269, Apple still says that the device’s profit margin is “significantly below” compared to a lot of its products.
The iPhone-maker confirmed this at an earnings call. Peter Oppenheimer, chief financial officer at Apple, said that the iPhone-maker makes less profit selling the iPad mini compared to other Apple-made devices. This is despite the smaller slate being extremely more expensive compared to smaller entry-level Android tablets such as the Amazon Kindle Fire HD and the Google Nexus 7. Google’s smaller tablet costs a mere £159.
Will Apple’s newly launched iPad mini be successful? There’s no doubt it will sell like hotcakes since it is a device made by Apple. Anything made by Apple, as we all know, drives Apple fans crazy. However, smaller Android tablets such as the Google Nexus 7 are cheaper, offer higher-resolution displays, and offer more powerful hardware. The Nexus 7 packs a quad-core processor, while the iPad mini only sports the dual-core A5 chip. So it remains to be seen if the smaller version of the iPad will do as well as other Apple devices.
Apple’s senior vice president of worldwide marketing, Phil Schiller, was quick to justify the iPad mini’s price tag, after critics rolled their eyes saying the smaller slate was too expensive. Schiller believes that the iPad mini will do well since it’s made by Apple.
If you’re looking to get your hands on the smaller version of the iPad, you can now pre-order the device on Apple’s website. The 16GB Wi-Fi-only version will set you back £269, the 32GB for £349, and the 64GB for £429. The 16GB Wi-Fi + Cellular costs £369, the 32GB for £449, and the 64GB for £529.
Will you be getting your hands on the iPad mini? Does Apple’s explanation justify the smaller slate being more expensive than cheaper 7-inch Android tablets? Share your thoughts through a comment on our Facebook page.
