"The iPad is far and away the most successful product in its category. The most affordable product we've made so far was $399 and people were choosing that over those devices," Schiller told Reuters. "And now you can get a device that's even more affordable at $329 in this great new form, and I think a lot of customers are going to be very excited about that."
The iPad Mini starts at $329 for the 16GB W-Fi-only version, with higher prices for more storage and 4G LTE support. Rival 7-inch tablets, such as Google's Nexus 7, Amazon's Kindle Fire HD, and Samsung's Galaxy Tab 2.0 start at $199, though the lowest-cost Nexus 7 and Galaxy Tab models come with only 8GB of memory.