[cageface]

The iPad mini is quite obviously a response to cheaper, smaller Android tablets, the best selling of which is the Kindle. Apple is clearly interested in the customers on the fence between a Kindle and a more expensive but higher quality device.

[demallien]

I'm not so sure that it is that obvious that the iPad mini was in response to competition. My personal theory is more that they recognised that there was an unfulfilled need for an iPad that was smaller / lighter than the original. For example, many people find an iPad too heavy for long periods of reading, but an iPhone is too small. As this is one of the biggest use cases for tablets, it is not surprising that Apple wanted to make a product that is optimised for that use case.

Another way to look at it - if competition was the motivation for the iPad mini, it would have cost $50 less.

[ygra]

Why bother selling it for less if people buy it for more, too? Apple's customers don't really compare prices and features between different options. They won't even consider an Android tablet and why would they? They probably own three generations of iPhones and two generations of iPads already. They'll happily pay Apple's price.

[greedo]

So many unsubstantiated assertions in your reply...

I'm an "Apple customer" and I'm price sensitive, I've also considered many Android based tablets as well as WebOS based tablets. Now we all know that anectadata is of limited value, but compare to no data...