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3 Reasons the iPad Mini's Price Is Right

Evan Niu, CFA
October 26, 2012

Before Apple (Nasdaq: AAPL  ) officially took the wraps off of its new iPad mini earlier this week, the big question on everyone's minds was: Where would Cupertino price the thing? The answer was that it started at $329 for an entry-level 16 GB model, on the higher end of expectations. In fact, Apple shares dipped during trading when pricing was announced, as investors expressed displeasure over that price tag.

Compared to rivals in the small-tablet market, particularly the (Nasdaq: AMZN  ) Kindle Fire HD or theĀ Google (Nasdaq: GOOG  ) Nexus 7 that both start at $199, the iPad mini entry-level asking price is $129 higher, a 65% premium.