The iPad Mini – It’s called The Mini But it’s Definitely Not Cheap… Why the Aggressive Pricing?

iPad mini – the latest gadget from Apple was launched at an event held by the company on October 23 2012 and it is marketing it as an independent device, not a cheaper version of the iPad by any means,  stating that it gives users the same experience as an iPad.

This is true to an extent because at 7.9 inches, iPad mini does look like a smaller version of the new iPad. However, the price of iPad mini starts from $329, and this is not cheap by any stretch of the imagination; however when you compare it to the price of the fourth generation iPad (with Retina Display) and iPhone 5, which start from $499 and $399 respectively, it does come across as a cheaper option, but cost wise it still is a premium range device.   This gets us thinking. Why is this device aggressively priced, more so when it is called the iPad mini. Basically, what the thinking or shall we say the expectation of the man-on-the-street was that if it’s called the iPad mini, its price won’t be so steep. But, as is always the case with Apple, the company has surprised everybody big time.

Let’s try to get a better insight into this whole aspect of Apple’s aggressive pricing.

In order to get a better idea about Apple’s strategy with respect to the iPad mini, let’s take a look at the explanation given by Apple CEO Tim Cook and CFO Peter Oppenheimer at the Apple Q4 conference call. In defense of the premium pricing of the mini device, Oppenheimer stated that “when we set out to build the iPad mini, we didn’t set out to build a small, cheap tablet”.

This statement stresses on the fact that Apple is looking forward to taking its brand to a new level with the iPad mini and create a totally new market segment instead of compromising on the price of the device for competing with its rivals in the 7-inch tablet market. However, the company is not even looking at targeting at the 7-inch tablet market since it already has the iPad for the same purpose.

Moreover, iPad mini is superior to the best devices under the 7-inch tablet category in the market in many ways. With a 7.9 inch screen size, it is much bigger, has the look and feel of the iPad, consists of a faster processor, speedier connectivity, 2 advanced cameras, a resolutionary display and an amazing interface, which only Apple can provide!

This in essence is why it is targeting premium buyers with its premium price.

iPad mini as a style statement

In an advertisement for iPhone 4, Apple Inc. ingeniously used the tagline -“If you don’t have an iPhone, well, you don’t have an iPhone.”  This same tagline holds true for all Apple devices including the iPad mini. This is because an Apple device is seen more as a style statement than an electronic device, which users use, get bored with and move on to purchase a new device to replace the old one.

An Apple device is a sign of luxury; not everyone can afford an Apple device but everyone wants to own it. This fact puts the owners of Apple devices in a different league and makes them stand out in the crowd of other smartphone and tablet users (The fact that just about everybody around you wants an iPhone or the iPad and usually finds ways to get their hands on one, throws this theory out of the window, but it is a style statement all the same).

Such is the power of Apple’s brand building strategy.

iPad Mini – an extension of Brand Apple

Apple is a company driven by constant innovation above everything else. This is what makes all Apple products stand out from its competitors. I am not saying that other companies don’t innovate or bring out unique products, but Apple is leagues ahead of them.

Apple, right since the very beginning, has always been many steps ahead of its competition and a trendsetter. Suffice to say, it leads and others follow! In an era where there are numerous smartphones and tablets launched by top mobile companies each year, which offer similar features and functions, Apple doesn’t seem to lose its ground and has a steady hold on the market shares in both these segments and is the clear winner even with its handful of top-notch devices!

For instance, mobile manufacturers such as Samsung, Sony and HTC launch numerous smartphone and tablet models in the market each year to compete with Apple. But the US based giant is neither perturbed by this fact, nor does it lose its grip on the market.  

This is because Apple has taken all its products (be it iMac, iPhone, iPod touch, or iPad) to a new level altogether with its branding strategy and its incessant focus on quality. Compare Apple’s website, its iTunes and App Store, its apps, its product designs and you will find how much effort the company has put into making everything perfect to the very last detail ; because the price of its devices is high, you get the best of everything for every single penny that you pay.

This is what distinguishes “Brand Apple” from all other brands in the market and if it compromises and brings down the price of its devices, it will soon lose out in the competition, including its brand value and its reputation as a company which provides high-end devices. All the uniqueness and the aura surrounding it would then bite the dust.

It is doing the same with iPad mini – giving users the best experience at a high price. And yet, I am sure that the device will be a hit with the users.

iPad mini – a device coveted by one and all

Who doesn’t want an Apple device? Sure, not everybody can afford to buy Apple devices, but this doesn’t stop them from coveting the latest products launched by the company in the market.

It is not just the design, but the interface and inventive features and functionalities in the Apple devices, which draws interest from both tech-savvy and not so tech-savvy users. This is the same reason, why people will definitely queue up to be the first to own iPad mini or pre-book it without a second thought. Take the case of the iPhone 5; Apple sold more than five million iPhone 5 within the three days of its release in stores! That’s the kind of interest and hype that Apple products are able to generate. Something that no other company has been able to pull off till date!

iPad mini – a device that is here to stay

Additionally, it is interesting to note that none of Apple’s devices are a passing fad. True, there was the debacle called Apple TV. But barring that, all its devices have performed exceptionally well in the market. The devices are built in a ways such that they keep the users interested for a long time to come. The company has similar hopes pinned to the iPad mini as well. And although the iPad mini has higher costs and a gross margin that is significantly below Apple’s corporate average, it will still rake in huge profits as was the case with all other devices released by the company in this calendar year! More so, when the company plans to sell more iPad mini’s so as to ensure that the device is a profitable venture for the company.

To conclude

These were some of the reasons, why Apple has priced the iPad mini aggressively despite the fact that it is a smaller device as compared to the third (or the fourth) generation iPad. Additionally, these reasons also explain why this aggressive pricing of this latest innovation from Apple will not affect its sales and just like iPad and iPhone, it will be a bestselling device on the market!

About The Author:
“Carlos is a developer with MyFirstMobileApp.com. An expert in his field of work, he has been a part of many iOS based projects for his company. He takes keen interest in the game of tennis and never misses a chance to watch his favorite players in action. He also likes to research and write about various technical topics. Follow him on Google+.”