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Originally Posted by tomsem
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.
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To a point. But something else to consider is the narrowing gap between the two devices. Originally, we had a 3.5" iPod touch vs a 9.7" iPad. A huge difference in both size and price. Now we have a 4" touch with a possible 7.85" iPad mini. A much smaller difference in both size and price.
As screen sizes and prices get closer, some may opt only for a tablet; a choice Apple owners haven't had before. A mini would still be small enough to carry around while offering a larger display for web browsing, reading and videos; thereby negating the need for both devices. As to music, there are cheaper and better options than the touch.
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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).
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I know.
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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.
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You're probably right there. A $349~$399 price point (depending on specs) would still leave the touch as a viable option for price sensitive consumers.