the (hi)story of mini
An Apple "mini" is rumored. It's a product that's made be smaller and cheaper than the existing Apple model and to address a segment where there's an existing competition, fairly well established ones at that. It is supposed to be cheap, very cheap!
Then it's released. The price is higher than expected. Everyone online complains it's too expensive by at least $50. Some question missing features and others question why they would buy mini over the competition or the bigger Apple model.
Then oddly the new mini model outsells everything. Many say it's only because Apple fans buy whatever Apple makes and predict Apple will eventually have to lower the price since other strong competition such as (ahem) Creative and Archos offer products with better value. Then.....
I'm not talking about iPad mini. The story above is what happened with iPod mini. iPod mini was originally rumored to be $100-150. The actual price? $250. People were not happy about the price.(Check out the reader comment at the end as well) I don't have to write here how that story turned out.
Obviously the competition now is stronger. Google, Asus, Amazon, et al are much stronger competition than Creative Rio and Archos back then. There's no guarantee the history will repeat. However I'm not sure if I'd bet against it repeating.
Google and Asus. We want you to step up your hardware game. For Microsoft it looks like your business in small tablet has been doomed before it even began.