[tomsem]

The new mini may not seem like the best value when you compare to Fire HDX or Nexus7.2 but it makes sense in terms of how Apple positions its own products.

Tier 1: iPad mini 1 ($299) and iPad 2 ($399)
Tier 2: iPad mini 2 ($399) and iPad Air ($499)

Some day I think we'll see a 'Pro' tier for another $100-200. Maybe with a 12" screen, or one that supports high resolution digitizing.

Then you have the memory gradations ($100x) and 4G option ($130).

Tier 1 is what you would buy for your kids maybe but otherwise are just there to compare with the much better Tier 2 devices that everyone will prefer when they do the comparison.

Likewise 16GB is really not enough for a high resolution device so that is another $100 for some very expensive memory (Amazon, Google charge $40 for the same upgrade).

All of these things are more expensive than the equivalent on Android (but you can spend just as much on an Android tablet if you want to). The main differentiator continues to be the available of high quality tablet apps that are exclusive to iOS.

But also I think Apple was concerned that mini was eroding the market for full sized iPads, whose higher price points command higher profits. Raising the mini price helps out with that. So it is perhaps no surprise that we are all thinking iPad Air is a great value.

I myself have been waiting what seems like a long time for the retina mini, complaining about how unwieldy my iPad3 seems, but with the iPad Air only a pound (mini is about .75 pound), 16mm narrower, and only $100 more, why wouldn't one just get that? For some things (PDF, sheet music, drawing, magazines, garage band) even 10" can seem cramped.