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Larger screen option, much better screen, better pencil support - not better support, but a much better pencil (this is HUGE for my daughter for example).

It's crazy to me that someone can look at a $350 device and a $1000 device and say there's not room for something in the middle...

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> I don't understand the target audience of ipad air.

For me — 13" laptop replacement with cellular connectivity.

If a 13" version of the base iPad existed, I'd probably get that, but as-is the iPad Air is the cheapest 13" iPad.

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I live in Asia and I see all students using iPads instead of laptops. The limitations of the OS are really not felt by the general public. Whatever you listed doesn't even make sense to them, they buy things based on what they can afford. Every iPad works the same to them.
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You're not wrong, but I hate the idea of an entire generation growing up without ever using a full powered computer. (Full powered is the wrong word, more like fully capable computer)

We have an entire generation who only knows how to interact with "usability optimized" interfaces with zero friction and zero learning curve.

Not knowing how to use a regular computer creates a barrier to entry for programming and other computing industries that didn’t exist before.

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Because it has a large screen and my wife uses it as her only computer and uses it with a regular $30 Bluetooth keyboard and mouse
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It's the cheapest iPad that supports pressure sensitivity on the better apple pencil.
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The Air has a better display (laminated, AR coating, P3 colors).
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My kids (4 and 6) like to use the iPad Air with the pencil.
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