Apple's Phil Schiller has told Reuters that "consumers will see Apple's smaller tablet as a premium product worth paying for" after a few eyebrows were raised at the 16GB Wi-Fi iPad Mini's £270 price tag.
That's £70 more than the 16GB Google Nexus 7, which makes up for its less premium build, lack of rear camera and slightly smaller screen with quad-core innards and a higher res display.
Still, we were very impressed by the iPad Mini in our hands on review and we don't think that extra premium is going to deter many consumers this Christmas.
Things could change after Google's October 29th event however, where we could see a 32GB Nexus 7 revealed for £200 which would offer double the storage of the base iPad Mini for £70 less (also making it £150 cheaper than its 32GB iPad Mini equivalent).
Either way, the tablet wars have never been as fiercer, so here's to hoping that the extra competition will lead to price cuts in both camps in the not-too-distant future.
32GB Google Nexus 7 could be £150 cheaper than the iPad Mini