Apple rolls out iPad mini in Sydney to shorter lines

The new iPad mini is shown next to a full sized model at an Apple event in San Jose, California, in this Oct 23, 2012 file photo. [Photo/Agencies]

SYDNEY - Apple fans lined up in Sydney, Australia, to get their hands on the iPad mini on Friday, but the device, priced above rival gadgets from Google and Amazon.com, attracted smaller crowds than at the company's previous global rollouts.

About 50 people waited for the Apple store to open, where in the past the line had stretched for several blocks when the company launched new iPhones.

Apple Inc's global gadget rollouts are typically high-energy affairs drawing droves of buyers who stand in line for hours. But a proliferation of comparable rival devices may have sapped some interest.

At the head of Friday's line was Patrick Li, who had been waiting since 4:30 am and was keen to get his hands on the 7.9-inch slate.

"It's light, easy to handle, and I'll use it to read books. It's better than the original iPad," Li said.

The iPad mini marks Apple's first foray into the smaller-tablet segment, and the latest salvo in a global mobile-device war that has engulfed combatants from Internet search leader Google Inc to Web retailer Amazon.com Inc and software giant Microsoft Corp.

Microsoft's 10-inch Surface tablet, powered by the just-launched Windows 8 software, went on sale in October, while Google and Amazon now dominate sales of smaller, 7-inch multimedia tablets.

Unveiled last week, the iPad mini has won mostly positive reviews, with criticism centering on a screen considered inferior to rivals' and a lofty price tag. The new tablet essentially replicates most of the features of its full-sized sibling, but in a smaller package.  

At $329 for a Wi-Fi only model, the iPad mini is a little costlier than predicted but some analysts see that as Apple's attempt to retain premium positioning.

Some investors fear the gadget will lure buyers away from Apple's $499 flagship 9.7-inch iPad, while proving ineffective in combating the threat of Amazon's $199 Kindle Fire and Google's Nexus 7, both of which are sold at or near cost.

Also on Friday, Apple rolled out its fourth-generation iPad, with the same 9.7-inch display as the previous version but with a faster A6X processor and better Wi-Fi.

Apple will likely sell between 1 million and 1.5 million iPad minis in the first weekend, far short of the 3 million third-generation iPads sold last March in their first weekend, according to Piper Jaffray analyst Gene Munster.

"The reason we expect fewer iPad minis compared to the 3rd Gen is because of the lack of the wireless option and newness of the smaller form factor for consumers," Munster said in a note to clients. "We believe that over time that will change."

Reviewers have applauded Apple for squeezing most of the iPad's features into a smaller package that can be comfortably manipulated with one hand.

James Vohradsky, a 20 year-old student who previously queued for 17 hours at the Sydney store to buy the iPhone 5, only stood in line for an hour and a half this time.

"I had an iPad 1 before, I kind of miss it because I sold it about a year ago. It's just more practical to have the mini because I found it a bit too big. The image is really good and it's got the fast A5 chip too," Vohradsky said.

The iPad was launched in 2010 by late Apple visionary Steve Jobs and since then it has taken a big chunk out of PC sales, upending the industry and reinventing mobile computing with its apps-based ecosystem.

A smaller tablet is the first device to be added to Apple's compact portfolio under Cook, who took over from Jobs just before his death a year ago. Analysts credit Google and Amazon for influencing the decision.

Some investors worry that Apple might have lost its chief visionary with Jobs, and that new management might not be able to stay ahead of the pack as rivals innovate and encroach on its market share.