For those who wonder why the $329 price tag instead of sub $300 the answer is pretty obvious. /Any new apple device will have demand exceeding supply. They simply can't make enough in Q4 to satisfy demand at $329. With this fact why would Apple price it any lower? The market will bear that price for as many as they can make through the end of the year.
Once supply catches up and any slack starts to set in maybe mid to late 2013 we will see a drop to $289 or $299. Also in 6 months it will cost Apple 10% to 20% less to build the device and they can maintain margin with this timing.
So it would be beyond stupid to price it so low when demand already strips production. I would agree that it should have been $299 if they could build an unlimited number of units but that is simply not the case.
Apple has already shown how it can decrease the price on aging products (ipad 2) and roll out the latest flagship at full price. We'll see the same thing here. I would say Apple would have been insane to price it any lower when buyers are lined up at $329 to snag every single one they can build
I generally agree, although high demand for the mini is not an absolute given. I do think Mr. Market has put undue importance on the mini - it was only one of several product announcements made today, and in terms of revenue not the most important.
I can't explain why AAPL stock hasn't dropped to $500 instead of $612'ish. Mediocre overhyped products made by slave labor for folks who wouldn't know quality from crap. Looks like the emperor's new clothes won't be fitting much longer.
For those who believe people will sway their purchase decision based on $50 surely has not looked at previous price point comparisons. Yesterdays doom and gloom was margin compression. Today's is high price and cannibalization tomorrow something else while Apple continues to grow year over year and amasses enough cash that could bail out Spain and Greece and have plenty remaining to fund acquisitions and grow it's dividend comfortably.
CNBC has bashed Gene Munster for several months yet while they did their live stream from CA all the idiot commentator could do is quote Gene Munster's view that the mini should be less than $300.00. They also had another genius from "CNET" who said that full sized IPADS were too expensive for most people while at the same time hearing that IPADS just crossed the 100million sales mark, and on top of that, IPADs representing 90.1% of tablet web traffic. Where do they get these guys?
Apple is on top and will stay there for a long time to come!
Sentiment: Strong Buy
Yes others can build market share on the bottom feeder strata customer. Those customers don't make money for anyone. I think apple is happy to leave them behind and focus on the customer base they can serve well and make money. It's just fine to give the super low end away.