The iPad Mini announcement sent Apple fanboy’s into a mouth foaming frenzy, however, just about everyone else had one minor issue with the companies new entry level tablet. Without putting too fine a point on it, the $329 starting price that Apple is so proud of isn’t actually all that competitive given the hardware specifications, especially considering the economies of scale the company enjoys. We knew Apple probably wasn’t going after the $199 tablet market, however the $130 delta between the Kindle Fire HD and iPad Mini seems to have helped Amazon immensely.
According to the online retailer turned device juggernaut, the Kindle Fire HD logged its largest sales day ever on Wednesday following the iPad Mini unveiling, revealing a weakness in Apple’s new strategy. It looks like a number of budget tablet buyers were waiting for Apple to play its hand before making up their minds, and Apple has simply failed to convince people they are worth the 65 percent premium.
To be clear Apple will probably still sell every last iPad Mini it can manufacture, but it seems clear they have simply ceded the tablet market to Amazon and Google below $329 for the next year.
Will the iPad Mini stem the tide of low cost Android tablets?