Apple debuted new updates to its tablet lineup of iPads with the release of the second-generation iPad mini and the fifth-generation of the full-sized iPad, renamed the iPad Air. These updates came in the wake of emerging competition from other tablet makers, which each offer low cost tablet devices. However, despite this Apple continues to remain firm in its high pricing.
With Amazon, Samsung and Google all releasing tablets at lower prices than Apple, Chief Executive Officer Tim Cook went in the opposite direction at the press event on Tuesday when he unveiled a new iPad mini with a high-definition Retina display starting at $399. According to BusinessWeek, that's $70 more expensive than last year's model. Apple also introduced a lighter and thinner iPad Air device starting at $499.
The new high-cost iPads come off of the debut of the supposed "low-cost" iPhone 5C last month. However, the new iPhone came at a heftier price than analysts were expecting. Many were thinking the iPhone 5C would be the company's foray into the low-end market but, with such a high price, it makes it clear that Apple is less concerned with the low-end and more concerned with where the profit is at the high-end.
"You can see from the pricing decision that Apple doesn't really fear much competition," said Benedict Evans, an analyst at Enders Analysis, who attended Apple's event in downtown San Francisco yesterday, via BusinessWeek.
Phil Schiller, Apple's senior vice president of worldwide marketing says that the company is focused on delivering high-quality devices. He added the iPad mini's increased price is mainly the result of steeper costs for the new high-definition display screens. Apple has also dropped the price of last year's iPad mini model to $299.
Apple's new iPads come out in the beginning of November, just in time for the holiday season. The company hopes the updates to all of its mobile devices this fall will boost their revenue growth, which has slowed in recent months.
Tell us what you think of the new iPad prices. Are you interested in one of the new iPads or will you go for a competing device like the Kindle Fire HD? Comment and share your thoughts below.
