Interesting topic here. Sounds like the "general consensus" of the MR News section junkies is: iPad mini is not gonna make it, and Apple is on its way down.
Well, everyone is entitled to their opinion, so I can express mine. The rumors of Apple's impending demise have been greatly exaggerated. I don't have a silver ball, of course, but I feel that Apple has made some right decisions, which ensure its continuing leadership role for the next few years.
It's pretty funny to read the mocking comments about the specs. The resolution, the CPU speed, the memory! Personally, I don't believe the specs matter so much as software optimization does. I don't own an iPhone, and I've owned several high-end Android phones. However, despite the officially inferior specs I still believe that iPhone is a better product than any of my Android phones. It's just I am on T-Mobile, so iPhone wasn't exactly an option for me. And WiFi calling (T-Mobile feature) and tethering matter more on a phone than they do on a tablet.
I own two iPads - 1 and 3. And I am a bit pissed off that my top-of-the-line iPad 3 has been made obsolete in just a few months. But I still enjoy using my iPads. And do my kids enjoy using the iPads! I have tested many Android tablets, from the real cheap Chinese pieces of s#&t to the top-of-the-line Samsung and Nexus ones. I don't believe the tablet experience on Android is comparable to iPad. I don't know how to explain it, but to me it's not even close. And I am not alone. The Apple store in the neighborhood is always full of people, and the tablet display at Best Buy is near deserted. The users know intuitively, which product really is better. And never mind the prices.
The price matters, but you only pay it once, and you are stuck with using a device for years. Most users are not tinkerers, they don't care about rooting and hacking - they want intuitive smooth enjoyable browsing experience, email, a good selection of quality apps and games, a nice comfortable tablet. And on a subconscious level it does matter that Multi-touch is smooth, and soft keys are the right size, and touch interface always does exactly what you want it to do, and that there is no tactile feel of cheap Chinese plastic. It is true that people love their i-devices, and they use them all the time. Apple products have the feel of high quality hardware while most other "high end" products out there do not. Including Nook tablets, which do have a pretty good feel to them, but suck in software.
So, let's wait and see what happens with iPad mini. Perhaps it will end up not being a major hit. But my suspicion is, if it works as well out of the box as its larger twin did, it's going to be huge. If it cannibalizes the iPad and iPod Touch sales, so be it. It probably will some. But remembering the same attitudes from 3 years ago, I wouldn't be in a hurry to write it off.
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