The introduction of an iPad Mini into Apple’s lineup of iOS devices is interesting, since its rumored price range is already occupied by the iPod touch. AppleInsider reports that the new iPad Mini could cost around $249, which would actually put the entry-level tablet below the cost of a new fifth-generation iPod touch, which starts at $299.
Considering that an iPad Mini will essentially be a 7.85-inch iPod touch, especially since it is rumored to lack cellular capabilities, a $249 price for the iPad Mini could have consumers get confused about which device to purchase.
I know these products are in different categories entirely, but this still appears to be an odd situation. I suppose it will come down to internal hardware, where the iPod touch might be at an advantage. Only time will tell.