Originally Posted by afv011
Well, you don't need to compete fiercely when you have an apple in the back, that'd alone guarantees you can add $100 at least on top of similar priced tablets, the shiny apple is worth that much if not more... to some at least. I don't see this mini selling for less than $299, but I could obviously be wrong.
All that is true, but I think that Apple is conscious of "their share" which is a big selling point. The 7" market niche is a (in my opinion) worm hole in the shiny big Apple. Apple needs to close that hole up before doubts about its supremacy emerge. Also as a practical matter it can sew up all the Chinese manufacturer's production so they don't have too much time to produce for other sellers.
Besides it is only a $50 difference of opinion. A coupon in the iTunes store would take care of that. Take a cue from Amazon and Google.