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Thursday, 04 October 2012 10:02

iPad mini might hurt Apple margins

Written by Fudzilla staff



Less room to rip off consumers


Apple’s new iPad mini is expected to debut in roughly a month’s time, but it is still unclear how Apple aims to position or price the new iPad.

Business Insider CEO Henry Blodget believes the baby iPad could end up hurting Apple’s margins. Blodget told CNBC’s Fast Money that Apple will be forced to slap a low price tag on the iPad mini due to strong competition.

“And I think with the iPad in general, and possibly, especially with the Mini, you may see that this is a much lower-margin product than, certainly, the iPhone,” he said.

However, Apple can afford to take a hit, as the company needs to check affordable 7-inch tablets from Google, Amazon and Barnes & Noble.

Oddly enough, although many punters are expecting the iPad mini to end up with a $299 price tag, Blodget reckons it will be much closer to $199.

More here.


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