Apple

Apple’s iPad Mini priced at $329

Apple Inc. is refusing to compete on price with its rivals in the tablet market — it’s pricing its new, smaller iPad well above the competition.

On Tuesday, the company revealed the iPad Mini, with a screen that’s about two-thirds the size of the full-size model, and said it will cost $329 and up.

Apple starts taking orders for the new model on Friday Oct. 26, said marketing chief Phil Schiller at an event in San Jose, Calif. Wi-Fi-only models on Nov. 2. Later, the company will add models capable of accessing “LTE” wireless data networks.

The price fits into the Apple product lineup between the iPad 2 at $399 and the latest version of the iPod touch at $299. But company watchers had been expecting Apple to price the iPad Mini at $250 to $300 to counter the threat of less expensive tablets like Amazon.com Inc.’s Kindle Fire, which starts at $159. Barnes & Noble Inc.’s Nook HD and Google Inc.’s Nexus 7 both start at $199.

Apple shares fell $14.83, or 2.3 percent, to $619.20 when the price was announced. Shares of Barnes & Noble Inc. jumped 91 cents, or 6.3 percent, to $15.35.

Shares of Amazon.com Inc. were down 12 cents, or less than 0.1 percent, at $233.66 while the rest of the stock market was in retreat.

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Michael Gossie

About Michael Gossie

Michael Gossie is an award-winning journalist who has earned more than 50 awards for writing, editing and design. He studied economics at Elmira College in Elmira, N.Y., and put his entrepreneurial spirit to work in 2007, using a 200-year-old family recipe to launch an Italian sauce company. He is a competitive marathon runner, Ironman triathlete and is most proud of being the founding president of the Steuben Arc Foundation in Upstate New York, which serves individuals with developmental disabilities, including his sister.