First, there was the iPad mini's price tag. Starting at $329 for a 16GB model, the iPad mini is noticeably more expensive than the comparably sized tablets that many see as its main competition. More surprisingly, Apple didn't just introduce a smaller iPad on Tuesday; it also rolled out a new generation of full-sized iPads a mere six months after its last iPad release.
As surprising as these decision may look from the outside, though, analysts say there's a method to Apple's move.
Take that iPad mini price tag. At $329, the 7.9-inch tablet costs only $70 less than a 10-inch iPad 2 with similar specs (and that has also been widely available since 2011). Competing 7-inch tablets such as and both retail for $199.
Prior to its Tuesday unveiling, many analysts expected the iPad mini to cost less than $300--an important threshold for consumers, according to NPD Group analyst Stephen Baker. "Psychologically, there's a big difference between being $299 and $329," he said.