Jay Lagare

The 128GB iPad is now available on the Apple Store. And don’t you say “640K 64GB ought to be enough for anybody.” In any case, that’s not what I want to talk about.

Much has been said about the 128GB iPad but what’s interesting is Apple’s pricing. Every additional $100 get you twice as much memory as the previous model.

This pricing applies not just to iPads but also iPhone and iPods. Some would say you pay more for less with Apple products. But if we just look at the pricing between the models, you pay less for more. Is that good pricing strategy? Yes, it is!

As expected Apple announced the iPad mini. They also announced the new iPad Gen 4 earlier than expected. This is primarily due to the rapid advance of the competition. Going forward, we can expect such shorter cycles not just from Apple but from its competitors.

But back to the mini. Mini it is. It’s, at first glance, the iPad 2 cut down to size. It’s smaller, thinner, and lighter. The rear camera is better at 5 megapixels. So is the front camera at 1.2 megapixels. But everything else remain the same: processor, memory, networking, even the resolution of 1024×768 (more on this later).

By creating the mini, Apple covers the market for a less expensive table. But even then, it’s positioned at the pricier end signifying that it is and still a premium tablet. It is more expensive than the Google Nexus 7 and the Amazon Kindle Fire. This is probably intentionally for the prestige and the bottom line.

On the next cycle, when a new iPad (Gen. 5) will be announced, the iPad 2 will be retired, the Gen. 3 will drop in price and take it’s place. During that cycle (or on the next depending on the LCD panel supply chain), the new iPad mini possibly would have a Retina display.

And by keeping the display at 1024×768 , Apple takes advantage of existing iPad Gen 2 apps. In the future, an iPad mini with Retina display will take advantage of existing iPad Gen 3/4 Retina apps. It avoided (and will avoid) further fragmentation of it’s iOS lineup.

Something that simple demonstrates why Apple is a great company.