There are many Apple fans considering the iPad Mini if rumors of its $200 price tag are true. However for a price such as this keeping the features and specs similar to current version of the iPad, could be difficult.
iPad Mini: Will Apple sacrifice features for price or consider a lower profit margin?
Recent rumours have pointed to the fact of the hardware costing almost this price and that is without any mark-up on the device. However if it turns out that the claims are wrong, then Apple would have accomplished a large achievement with the iPad Mini.
Many people want LTE on the iPad Mini and for some this could be a dealbreaker if Apple were to leave it out. It is thought that the iPad Mini will come with the microSIM, as used in the iPhone 5. However, when trying to design a smaller iPad Apple may have had to sacrifice some of the more expensive features. So what features would people be willing to lose? These of course would be different based on the individual and how they wanted to use the tablet. Apple are known to have large margins of profits on the majority of their products, however would they willingly take a decrease in profits to take over the tablet market in the 7 inch category? Unlikely.
Apple can ask high prices for their products as they are very popular. So if Apple were to drop the price, we can expect some goodies to be missing. If we had to guess, it would be the most expensive components like the Retina Display, LTE radios and cameras to mention a few.
Steve Jobs always said that you should cannibalise your own product, as opposed to letting someone else. So if Apple wishes to compete with the likes of the Google Nexus 7 and Amazon Kindle Fire HD which are operating on almost zero-profit margins, it may just need to change with the times and follow suit.