Home > Finance and Stocks > The reason Apple priced the Mini iPad at $329

The reason Apple priced the Mini iPad at $329

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

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Categories: Finance and Stocks
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