Picture Credit: Gizmodo

I was beating my head all weekend trying to figure out how Apple could sell its much anticipated new iPad Mini for a competitive price without compromising the higher end price of the new iPod Touch line.

Well. as in all things, the solution is simple. Ridiculously simple actually.

Here is my theory: the iPad Mini will indeed be a consumption device but more than that it will be purely an Apple consumption device.

Similar to the strong ties Amazon has achieved between their Kindle line and Amazon products, the iPad Mini will be used to purchase Movies, Music, newly-defined Apps and Games only through ITunes.

Additionally, books will be available via only via iBooks and Podcasts via the Podcast App.

And there you have it in a nutshell. Yes, you will see the popular apps like Facebook and Twitter; after all, they have established a strong partnership with Apple.

But, at the end of the day, this iPad Mini will be an aggressive move to push all of Apple’s products, like iBooks, to the forefront.

The iPad Mini, at a lower cost than its full-sized parent, will be the vehicle to drive sales of media, music, books and apps through the roof.

What do you think? Does this theory sit well with you? Please share your comments.