iPad Mini Priced Too High, Too Low, or Juuust Right? (AAPL)

Yesterday Apple (Nasdaq: AAPL) unveiled its latest Tablet device, the iPad Mini. Apple priced the base model Mini at $329, causing scoffs from some analysts and techies who were anticipating a lower price.

A lower price would give Apple a better chance of ruining Google (Nasdaq: GOOG) and Amazon's (Nasdaq: AMZN) chances in the small tablet space. According to Bloomberg Industries analyst Anand Srinivasan, it would also lower Apple's margin.

Considering Amazon and Google's tablets are at, or near, break even, this might not be saying much, but it is worth noting that Apples margins on the iPad Mini are better overall than expected. So, while Apple may not be able to crush Google and Amazon outright, if Apple can gain market share while still maintaining relatively high gross margins, it could find itself back in the catbird seat before long.

After declining yesterday, Apple shares are ticking higher intra-day on Wednesday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• KGI Securities Downgrades Apple (AAPL) to Hold
• HDFC Asset Management Co Ltd (HDFCAMC:IN) PT Raised to INR3,250 at JPMorgan
• JPMorgan Starts BSE Limited (BSE:IN) at Neutral