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In an interview with Reuters, Phil Schiller told everyone to basically stop complaining about the mini's price because it is a better product than the Nexus 7 and the Fire HD.
"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.
The Nexus 7 and Fire HD are at a point where they can potentially lose money on the products in order to try to get a piece of the iPad market. In fact, they need to be willing to lose money to try to get in the market. If they were priced to make a real profit they would get no market share at all. For them to eat into the iPad market they have to price their product where they did. The cool part about being an iPad is you don't have to worry about eating into the iPad market.
Phil is right on everything he was saying. The iPad mini is not supposed to be released as a competitor for the 7 or the Fire HD. Stop pretending it was. Apple has no reason to try to be a competitor in that market, because they own that market.
Apple gets it right again. As much as some people are complaining about this price point it is still going to sell in remarkable numbers. Apple doesn't need to have a product that is priced below its value. They have no need to release a loss leader in order to stimulate sales. They need to continue to release really great products. We at MacWeekend believe that they have done that again.
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