I mentioned this somewhere else. You know who's going to buy an iPad Mini? Somebody who already has an iPad. Apple is trying to keep existing customers in their ecosystem.
This product doesn't make sense for anyone else. Average Joe Consumer who's never seen apps on the iPad doesn't care about apps, or having his gadgets sharp enough to chop onions. But he does care about price. The Nexus 7 or Fire HD is a no-brainer for him.
I hate to shill my blog here (truth be told I don't even know if it can handle more than 2 users at a time) but I wrote a little more about it here http://blog.fullfrontalmarketing.com/en/2012/10/25/ipad-mini...