Originally Posted by tubemonkey
Not sure how it'll fit in with the rest of their devices. The new entry level iPod touch 5 is already priced high. Entry level prices:
- $199 -- iPod touch 4 (16GB)
- $299 -- iPod touch 5 (32GB)
- $399 -- iPad 2 WiFi (16GB)
- $499 -- iPad 3 WiFi (16GB)
iPod and iPad don't compete with each other. People don't get iPod Touch because it is a cheap iPad, they get it because it will run most iPhone apps while not requiring a calling/data plan, yet it is light enough to go jogging with while listening to music. Like many people, I have both, and while there's some overlap in functionality, some things work best on an iPad and some things better on iPodTouch/iPhone. They're complementary.
The new iPod touch has the same price points as the previous generation, topping out at $399 just as before. They just don't have a 5G device at $199 to replace what used to be the 8GB IPod Touch (that price point is now filled by a 16GB 4G device).
My guess is that Mini would replace iPad2 at approximately its price points or a little lower (maybe with no 3/4G option). An 'entry level' iPad with the added advantage that it is more portable and gives people seeking that form factor an Apple option. If iPad2 were to stay in the current lineup (apart from refurbished units), I think it would cause too much 'confusion'. With its 'paltry' 132ppi display, it no longer stands apart from the competition in that price range and is there mostly to get people to get iPad3 once people compare them side by side), and should be retired. Mini would offer something new (assuming it has a retina screen @1536x2048).