Yesterday Apple announced the iPad mini. It will perform just as the iPad 3 but it is smaller, 7 inches, which is similar to the kindle fire and other android tablets. So why is this good and bad for Apple?
Its good because now Apple will have a product to compete with the Kindle Fire and Android tablets in the 7 inch range. There were a whole host of people who like that size over the original iPad (myself included so this is a welcome change).
Now what is interesting is that Steve Jobs was against a mini-tablet and I believe this is why:
Apple makes an iPod touch that sells for $199 – the same price as the kindle fire and other android tablets. So if Apple wants to compete with the Kindle, they needed a cheaper device but they could not meet the $199 price point unless they made their iPod cheaper. So what did Apple do? Start the base model of the mini ipad for $329, which is still significantly higher than the kindle. Will people buy this new device? I am sure they will sell millions. Will people who are leaning towards the kindle for the price point buy this? I do not think so. $130 is a lot of people who are struggling with money right now.
Will I be buying this device? Well I already have an iPad so since this does nothing new, I will not be. In the future though, I would prefer this size device to my currect iPad when I replace it. And that is where this device will shine – I think people will replace their current iPads (when they are ready to) with this device. People getting new iPads will get this device, not the larger one. That is where I see the future of this device headed.