Apple Considering Lower-Priced iPad Mini at $199-$249?

Along with his recent research note addressing Apple's notebook launch plans, KGI Securities analyst Ming-Chi Kuo has also published a note examining Apple's iPad prospects.

In particular, Kuo looks to the iPad mini as the future of the company's iPad portfolio, but with Apple's efforts to bring a Retina display to the device said to be pushing a launch back to the fourth quarter of this year, he suggests that Apple may be looking at a lower-priced iPad mini.

Prior to iPad mini 2 launch, Apple might roll out a more affordable iPad mini to compete with Android products. To cut costs, Apple might push for lower component prices, use a more advanced process to produce the A5 processor, simplify metal casing production, remove the rear camera, cut storage to 8GB and find more component suppliers to lower costs. We think this cheaper iPad mini retail for US$199~249.

Kuo does not believe that such a device would offer a significant boost to Apple's overall iPad sales, but it could help stave off erosion at the low end of the market at the hands of cheaper Android-based tablets.

ipad_mini_white_side
The $199-$249 price range is one that many potential customers had hoped Apple would be able to hit with the original iPad mini, but the company surprised many by introducing the iPad mini starting at $329. Even at that pricing, Apple has noted a number of times that the iPad mini's profit margins are below the company average.

Apple is said to be pursuing a similar strategy for the iPhone, working on a lower-cost iPhone with a polycarbonate shell rumored for launch later this year.

Overall, Kuo sees relatively small sales growth for the iPad in 2013, with the full-size iPad being cannibalized by the popular iPad mini and the upgraded iPad mini with Retina display not debuting until late in the year.

With Android tablets also beginning to gain footholds in some markets and driving Apple's estimated share of the tablet market below 50% in recent quarters, Kuo expects that Apple will remain competitive but see relatively slow growth until the launch of the Retina iPad mini.

Related Roundup: iPad mini
Buyer's Guide: iPad Mini (Neutral)
Related Forum: iPad

Popular Stories

Apple Shopping Event 2025

Apple Announces 2025 Black Friday Event, Here's What You Can Get

Thursday November 20, 2025 6:28 am PST by
Apple's annual four-day Black Friday through Cyber Monday shopping event is returning on Friday, November 28 through Monday, December 1 in many countries, including the United States, Canada, Australia, New Zealand, France, Germany, Italy, Spain, the United Kingdom, Belgium, the Netherlands, Sweden, Thailand, and others. During the shopping event, customers can get an Apple gift card with...
iPhone 17 Pro Cosmic Orange

10 Reasons to Wait for Next Year's iPhone 18 Pro

Wednesday November 19, 2025 4:00 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
iOS 26

iOS 26.2 Adds These New Features to Your iPhone

Thursday November 20, 2025 10:50 am PST by
iOS 26.2 is currently in beta testing. The upcoming update includes a handful of new features and changes on the iPhone, including a new Liquid Glass slider for the Lock Screen's clock, offline lyrics for Apple Music, and more. In a recent press release, Apple confirmed that iOS 26.2 will be released to all users in December, but it did not provide a specific release date. Keep reading...
hikawa phone grip stand apple%402x

Apple Launches Second Limited-Edition iPhone Accessory in a Month

Friday November 21, 2025 3:53 am PST by
Apple has begun selling the Hikawa Phone Grip and Stand, a new limited-edition iPhone accessory designed with accessibility in mind. Designed by LA-based Bailey Hikawa to celebrate the 40th anniversary of accessibility at Apple, the grip uses magnets to securely snap onto any iPhone with MagSafe. Apple says it can be removed with ease, and doubles as a stand with two different viewing...
ipad mini 7 feature red and blue

iPad Mini 8: Four Major New Features to Expect

Wednesday November 19, 2025 7:50 am PST by
Apple's eighth-generation iPad mini is highly likely to arrive next year, offering a significant refresh of the device with at least four major new features. OLED Display The next-generation version of the iPad mini could feature an OLED display, as part of Apple's plan to expand the display technology across many more of its devices. Apple's first OLED device was the Apple Watch in 2015, ...
watchos 26 workout app

Apple Watch Users Claim Workout App Is Now Worse in Every Way

Thursday November 20, 2025 7:01 am PST by
Apple Watch owners have been voicing their frustration online over changes to the Workout app that Apple introduced in watchOS 26, with many finding the redesigned interface makes starting exercises difficult and exasperating. When Apple launched watchOS 26 in September, the Workout app went from large, easily tapped workout tiles to a scrolling, corner-button interface. Instead of tapping a ...
applecare apple care banner

Apple Brings New AppleCare+ Options to India

Tuesday November 18, 2025 8:42 am PST by
Apple today announced an expansion of AppleCare+ coverage in India, with new options for monthly and annual plans, and the addition of Theft and Loss for iPhone for the first time. Options for monthly and annual AppleCare+ plans in India provide more choice and flexibility, allowing users to keep coverage for as long as they require. Apple's vice president of Worldwide iPhone Product...
ipad black friday 2025

The Best Early Black Friday iPad Deals

Thursday November 20, 2025 10:20 am PST by
Black Friday is just over a week away, and iPad deals have finally started to flood in at retailers like Amazon and Best Buy. Below we're tracking discounts on every current generation iPad, including lowest-ever prices on M3 iPad Air and M5 iPad Pro, plus steep markdowns on iPad and iPad mini. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a ...
apple wallet drivers license feature iPhone 15 pro

Two More U.S. States Commit to Offering iPhone Driver's Licenses in Apple Wallet App

Thursday November 20, 2025 8:21 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Apple Wallet app on the iPhone and Apple Watch, and then use it to display proof of identity or age at select airports and businesses, and in select apps. Earlier this week, Illinois became the 13th state in the U.S. to offer the feature. Subsequently, we shared a list of additional states that are committed...

Top Rated Comments

siurpeeman Avatar
164 months ago
i could see the current mini dropping to $229, and the new mini taking over the $329 spot.
Score: 50 Votes (Like | Disagree)
darwynn Avatar
164 months ago
Apple will probably just continue selling the previous generation mini at a reduced price when the new ones are released.
Score: 32 Votes (Like | Disagree)
Lancetx Avatar
164 months ago
iPad sales were up 65% YoY in the 1st quarter, so price apparently isn't an issue.
Score: 23 Votes (Like | Disagree)
reiggin Avatar
164 months ago
In other news, Mercedes is considering a compact econo sedan to compete with Kia and Rolex is considering a line of slap watches.
Score: 12 Votes (Like | Disagree)
AppleScruff1 Avatar
164 months ago
If it sells for $229 it will be Apple's best selling iPad. Sales of the full size will fall drastically, IMHO. People will buy because of price.
Score: 12 Votes (Like | Disagree)
aheying7 Avatar
164 months ago
There is absolutely no way they would sell an 8GB device again. My sisters's iPhone 4 fills up with the size of iOS alone and like 2 apps.

And I don't think they would take out a rear camera.

The current iPad mini will stick around for a long time at a lower price point....just like the iPad 2.
Score: 11 Votes (Like | Disagree)