Traditionally, Apple did not increase prices on its updates and lowered the prices on older models. But, as was announced at the big Apple event on Tuesday, the new 7.9 inch iPad mini with Retina will be selling for $399. The previous version was selling for $329. The price of old mini went down only for $30.
While many analysts believe that Apple is missing on the opportunity to get into the lower end market, the fact is that Apple doesn’t really care about competing on that level. It is leaving the rivals, particularly those running Android, free running field. Rival tablets’ starting price is $250.
The fact is that the more expensive Apple tablets will do very well regardless of the price, but analysts believe that Apple’s share of the tablets market will continue to drop. Apple’s lack of interest leaves the field of under-$400 tablets to Amazon, Google and the others.
Apple’s participation in the tablet’s market has been dropping slowly but surely. When Apple came up with the first iPad with touch screen in 2010, it sold three fourths of all tablets. But, at the end of 2012, Apple’s share was 46 percents and it is estimated that at the end of this year it will be 36 percents.
At the same time, Android will sell 60 percent of tablets, a huge jump since 2010 when its share was only 22 percents. The reason is that Android is completely covering the smart phones market. People like what their smartphones can do, and once they get used to their phones, they get interested in the tablets as well.
At the moment, iPad has far more apps than Android tablets – almost 475,000, as reported by Tim Cook, Apple CEO. But, that will change, and with the price of Android tablets dropping, Android clearly is winning.