Apple's Schiller defends iPad mini's price tag
SAN FRANCISCO (REUTERS) - Apple marketing wizard Phil Schiller defended the US$329 (S$403) price of the new iPad mini tablet, saying consumers will be willing to pay for quality not found in less expensive devices from rivals like Google and Amazon.
With competition growing from tablets that are smaller and less expensive than Apple's wildly popular iPads, Apple Chief Executive Tim Cook and Schiller on Tuesday took the wraps off the new 7.9-inch tablet, which essentially has most of the functions and features of the full-size iPad but in a smaller package.
While the news of the launch was welcomed by Wall Street, many analysts were concerned that the steeper-than-expected price might turn away some cost conscious consumers. Google's Nexus 7 and Amazon's Kindle Fire HD tablets are both priced starting at US$199. While the iPad mini is significantly more expensive, it is also lighter, thinner and provides more screen space than rival offerings.
Asked by Reuters whether the iPad mini's price could make it too expensive for some cost-conscious shoppers who have been attracted to the Nexus 7 and Kindle Fire, Mr Schiller said he believes consumers will see Apple's smaller tablet as a premium product worth paying for.