$200 Mini iPad Coming in October 2012?

We have been hearing a lot of rumors about the next generation iPhone and mini iPad in the past few weeks. Apple is going to release a 4 inch iPhone to the market later this year. At least, that is what most experts have come to accept at this point. The mini iPad story is a bit harder to figure out. Steve Jobs was never a fan of small tablets. Considering the number of iPad 3 units that Apple is selling, the company simply has not had a great reason to make a 7 inch iPad. Multiple sources have now reported that Apple could revisit the idea of introducing an iPad mini to the market.

The iPad has been hard to compete with for other tablet makers. It is priced just right and has a beautiful ecosystem around it. Companies such as Amazon and B&N have been taking some sales away from Apple with their budget tablets. iMore is now reporting that Apple will bring a small iPad to the market for around $200 – $250. The cheapest model will start at 8 GB. The device is going to be a scaled down version of the current iPad with a pixel density of 326 ppi or so.

With that strategy, Amazon and Samsung are going to have a very hard time staying competitive. But we can’t imagine Apple offering an iPad for such a low price. Even though Apple has been quite aggressive with its iPad pricing strategy, it is still a premium brand. Competing with budget tablets such as the Kindle Fire with prices like that does not seem like something Apple would pursue.

Considering that Apple is getting ready to introduce a 4 inch iPhone, the idea of an iPad mini making its debut in October does not sound that crazy. But considering that Apple is interested in maintaining its high profit margins, we have a hard time accepting the rumored pricing strategy for the iPad mini.

What’s your take? Does this rumor make sense to you?