Apple stock falls; is iPad mini priced too high? - Los Angeles Times
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Apple stock falls; is iPad mini priced too high?

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Apple’s stock took a hit Tuesday and it could be because the iPad mini might be priced too high.

This morning the company announced its new 7.9-inch tablet, but since then Apple’s stock has fallen more than 3%, or more than $20. It closed at $613.36.

Typically after new product announcements, Apple’s stock falls as people sell on the news, but this time it may be tied to the iPad mini’s pricing, according to Value Walk.

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The iPad mini starts at $329 for a 16 GB model. By comparison, the iPad mini’s competitors, the Google Nexus 7 and the Amazon 7-inch Kindle Fire HD, offer their tablets at $250 and $200 for 16 GB models, respectively.

Analysts reiterated the point, saying Apple may be leaving a gap for its competitors to fill.

“We believe a price point of $250-300 would have gone a long way in keeping competition at bay,” Mizuho Securities said in a note Tuesday.

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Google and Amazon are counting on the sales of digital goods purchased on the tablets to make up for the low, or in Amazon’s case non-existent, margins to make a profit. Apple may instead be counting on the sale of its device.

Pre-orders for the iPad mini start Friday and the device will be available in stores Nov. 2.

AAPL data by YCharts

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