Apple is going after profits and neglecting the opportunity to garner significant marketshare.
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, the base model of the smaller iPad will likely be priced at a minimum of $329 in the United States.
Two higher capacities of the smaller iPad will be available in the WiFi-only configuration. These will likely be priced at $100 premiums over each other at a minimum of $429 and $529.