As I've said before, Apple is a frustrating company that offers both
improvements and out-of-date features that confound expectations. This
has some tech writers railing on Apple for introducing the $329
iPad mini with lower resolution
(1024 x 768) than other similar sized models.
It may be a valid complaint if you limit your view of the product
and ignore the target market.
From left to right: iPad mini, Kindle Fire HD, and Nexus 7.
If the screen is less wonderful than the $199 Kindle
Fire HD or the $233 Nexus
7 (each with 16 GB of memory and 7.0" 1280 x 800 pixel screens),
then it may not be designed for these types of uses. This group
probably doesn't have an iPhone and is too cheap to buy an iPad. More
likely this group has an Android phone and probably few (if any) Apple
products.
This is important, because Apple doesn't just sell the iPad mini, it
sells the whole ecosystem. If you already have an iPhone, then you have
a collection of apps ready to transfer to the iPad mini. Your music
will sync. You are already committed to Apple, and staying with Apple
will save you time and money.
The old idea of the rabid Apple fan blinds some people from
acknowledging the new Apple user. These people include my 80-year-old
mother-in-law, who just wants technology to work. The more full
featured and integrated Apple has become, the more these new users are
satisfied - and it is harder for them to leave.
Let's look at the Apple iPad mini in the context of the Apple user.
An Apple user has either an iPod, iPhone, iPad, or Mac. All have iTunes
and therefore music to transfer over. iPod touch, iPhone, and iPad
users all have apps downloaded with at least a few paid for apps. They
are used to how the sync process works and are knowledgeable enough to
transfer files to a new Apple product (even if they are not, they still
have the Apple retail store with a Genius to help).
For this group, buying a Kindle HD or Nexus is extra work. Some
things won't transfer well, and all of your apps are useless. You would
only buy a Kindle or Nexus for a specific feature or due to lack of
money. The list of features only available on the Kindle or Nexus is
small. (I can't think of any.)
Now that we identified the buyer, an Apple user, what is their
reason to buy a Mini? The Mini has no special apps, camera, GPS,
network feature, etc. that cannot be found on the larger iPad 2 or iPad 4. That only leaves size and cost as
justification for buying it.
Before the announcement, if you wanted a smaller iPad or didn't have
enough money, your only choice was to buy an iPod touch, Kindle, or
Android tablet. Apple has lowered that barrier. You can now buy either
an iPod touch for a really small size (3.5" or 4" display) or get a
7.9" iPad mini with a slightly larger screen.
Pricing
- 4G iPod touch, $199
- 5G iPod touch, $299
- iPad mini, $329
- iPad 2, $399
- iPad 4, $499
In Apple's view of the Apple user, this price range covers everyone
from $199 to $499 and beyond. They've sold 100 million iPads in the
$499 price range. Sales haven't slowed down just because the Kindle
Fire HD or the Nexus 7 was introduced.
The question is how many iPad minis will Apple sell that cost
less than an iPad 2 but more than a new iPod touch? The answer is
enough to satisfy Apple users who want either a smaller or cheaper
product without cannibalizing away those users who want the best
overall product.
The iPad mini may be "every inch an iPad", but the iPad 4 is still
the better product. It has the better resolution screen and the better
processor.
Technology writers may be able to compare a single product feature
and write a story, but Apple knows it customers. Others may disagree,
but Apple will do fine with the current pricing, at least until after
the Christmas holiday. 
