In addition to expectations over the iPad Mini hurting the PC market, the tablet's price is also expected to negatively impact Windows 8 devices.
Sterne Agee analyst Shaw Wu said in an investor's note that the iPad Mini's main rivals are not 7-inch Android tablets, but rather Windows 8-powered tablets and PCs.
"We continue to believe iPad Mini is the competition's worst nightmare and will likely slow down adoption of competitor tablets," Wu said. "In particular, we believe this could end up being a very tough holiday season for Windows 8."
The analyst believes the iPad Mini's $329 price tag will attract consumers more when compared some of the new Windows 8 devices that have higher prices. He referred to Microsoft's $599 Surface RT tablet that is "arguably overpriced." While consumers may believe the iPad Mini is overpriced when compared to other 7-inch tablets such as Google's Nexus 7, Wu suggested that Apple is just following its usual strategy.
"This controversy reminds us of what happened with iPod Mini and iPod Nano," he said. "Both predecessors were criticized as being overpriced but went on to do much better than expected. The key reason being high quality at a reasonable price, and we see something similar here."
The iPad Mini, which launches in several territories today including the U.S. and UK, sold out of its initial pre-order inventory in 23 minutes. As for its price, Apple believes the tablet's quality warrants the premium price tag.
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Zak Islam is a freelance writer focusing on security, networking, and general computing. His work also appears at Digital Trends and Tom's Guide.
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friskiest MS isn't aiming for a blockbuster sale with the Surface RT,. its supposed to show what MS has to offer in the tablet/ultramobile market,. with that I believe they succeeded,.Reply
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house70 Sterne Agee put a lot of stock into AAPL, as expected, so their "analysts" will obviously do anything and everything to keep the value high, including making erroneous reports like this one.Reply
A toy like iPmini can not be a direct competitor to Surface tablets. It's like comparing cars and semi trucks. They serve different markets and different needs. People will buy Surface for productivity and toy tablets for playing. -
RealBeast vaughn2kIs WU an Apple investor?Probably. Clowns like him are always pimping for companies where they have some interest or business relationship.Reply
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deftonian ReplyHe referred to Microsoft's $599 Surface RT tablet that is "arguably overpriced."
LMAO, are you kidding me? Then what does he have to say about The new iPad? or even iPad 2 for that matter??
This just goes to show you that the guy is a paid advertiser for apple. Look at the source of this article. -
fat_panda I still think Apple got it wrong in the pricing of iPad Mini, it's $130 more expensive than the Nexus 7!! But the world won't care and buy it anyways.Reply -
tacobravo So he just compared a basic ipad mini to the surface with the cover on it. He should of compared it to the $499.99 one and mention that the ipad min does not come with Microsoft Home and Student 2013 Preview. Makes the ipad mini look like crap plus with the 16 GB Nexus 7 at $199.99...Reply -
southernshark A random Zak Islam "Apple Moment"Reply
How Rare....
When will Tom's stop reprinting this guy's trash? -
beayn There was too much positive Windows 8 / Surface news lately so Zak needed to post this ASAP. Can't have shares in Apple dropping again.Reply