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Apple to make 7" iPAD this year ?
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Wednesday, February 22, 2012
Analysts are predicting that Apple will launch a smaller, more affordable iPad tablet in 2012 in addition to its high end iPad 3, due out next quarter.
Brett Simpson and Richard Kramer of Arete Research said they expected to see Apple launch “a 7-inch iPad with a low-end specification,” in or around the third quarter of the year at a price point of about $299.
“Given the iPad 3 aims to use higher spec parts (quad-core CPU, higher resolution display, LTE, and improved camera) there is plenty of scope to offer a cost down model supporting ~$100 lower bill of materials,” said the pair.
The late Steve Jobs had famously blasted the 7-inch form factor on Apple's Q4 2010 financial results conference call, calling the form factor "too small," but analysts believe the new management is revisiting the idea.
The pent-up demand for iPad 3 and the buzz around Microsoft's upcoming Windows 8 devices make the conditions ripe for a more mid-range offering, said the analysts, positing that the price of the iPad 2 would also be reduced, creating three different price tiers.
 “If offered at around $299, it will spur far greater adoption,” said Arete, noting that the educational and emerging market segments would be prime targets for such a device.
Arete said it believed Apple was poised to take some 64 percent of the overall tablet market in 2012, shipping a predicted 69 million iPads, more than five times that of its top OEM competitors, Samsung and Amazon.
“With Microsoft demanding a ~$10 royalty for every Android tablet, and Apple positioning its iPad mini to oust rivals in the low-end, we see little opportunity for OEMs to scale and make money this year,” said Arete, giving a gloomy outlook to other tablet hopefuls.
Arete predicted that given the situation, Google would also attempt to deepen its efforts to scale up in tablets by leveraging Motorola as its anchor OEM.
“Other vendors should be indifferent for lack of gross margin dollars in the space,” said the firm.
By: DocMemory
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