Apple Inc announced a new, smaller iPad tablet priced from $329 on Tuesday, well above the price of competing devices from Amazon.com and Google Inc. Its shares were down more than 2 percent in afternoon trading.
Here is instant reaction from analysts and investors.
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SHANNON CROSS, ANALYST, CROSS RESEARCH
"Definitely think they have another hit on their hands."
"Blanketing all price points with very compelling products and not leaving a pricing umbrella for the competition. Keep in mind, if you run through iPod Touch through the portable Macs, there's clearly a price point for pretty much everyone, especially into the holiday season."
ALEX GAUNA, ANALYST, JMP SECURITIES
"The pricing isn't a surprise, and that's a bad thing for the stock right now. It's coming in the range that most were grumbling about and that quite frankly we're a little bit concerned about."
"It's a tricky pricing tier. It's a little confusing at this juncture to try and figure out how it fits into the line-up. Is it going to cannibalize the more expensive iPad? Is it not going to sell well because it's not differentiated enough than the iPod touch?. It's also quite a bit more expensive than the subsidized alternatives out there."
"It is worth noting that there are zero margin products out there competing with them now, the (Samsung) Galaxy, (Google)Nexus 7 and the (Amazon.com) Kindle Fire HD, and that is presenting some challenges to Apple, which at least at this juncture, Wall Street has some concerns about."