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Chronicles

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Apple's smaller iPad to likely start at a minimum of $329 in the U.S.

Apple's entry price for its upcoming smaller iPad is between the base model of the new, fifth-generation iPod touch ($299) and the currently shipping WiFi-only 16GB iPad 2 ($399).  According to our sources …

9to5Mac Mark Gurman

Context & Ripple Effects

Apple’s tablet line began with a $499 entry-level iPad in 2010. A May 2012 report placed a possible 7-inch Retina model at $200–$250, so the reported $329 starting point would mark a higher entry tier than that earlier expectation while still sitting below the $399 iPad 2.

The reported price positions the smaller iPad between Apple’s $299 fifth-generation iPod touch and its existing 16GB Wi‑Fi iPad 2. It suggests Apple is using size and capacity to extend its device ladder rather than simply match the lowest rumored small-tablet price.

First-order effects

  • If Apple introduces the smaller iPad at the reported $329 price, buyers gain a new Apple tablet entry point $70 below the iPad 2 while the iPod touch remains the lower-cost portable option.
  • Apple’s own iPad 2 becomes the immediate upsell: its $399 price leaves a $70 gap for buyers deciding whether a larger screen justifies the premium.

Second-order effects

  • The gap between the $299 iPod touch, a rumored $329 smaller iPad, and the $399 iPad 2 makes screen size a more explicit pricing lever across Apple’s portable lineup.
  • A $329 launch price would also undermine the earlier $200–$250 small-iPad pricing expectation, signaling that Apple may protect separation from its lowest-priced devices rather than compete solely on entry price.

Third-order effects

  • If Apple sustains closely spaced price tiers, tablet competition shifts toward managing product ladders—screen size, storage, and features—rather than treating the category as a single flagship price point.

The trend: Apple is broadening the iPad price ladder by using a smaller form factor to create a lower entry tier without dropping to the lowest rumored price band.

Related: Apple · iPad · The Apple iPad: starts at $499

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