Google's Nexus 7 and the Amazon Kindle Fire HD start at $199 so Apple has priced its smaller tablet at quite a premium over its rivals.
Reuters asked Phil Schiller, Senior VP of Worldwide Marketing at Apple, whether it could be too expensive for cost-conscious shoppers.
"The iPad is far and away the most successful product in its category. The most affordable product we've made so far was $399 and people were choosing that over those devices," Schiller said.
"And now you can get a device that's even more affordable at $329 in this great new form, and I think a lot of customers are going to be very excited about that," Schiller said.