Apple Inc. (AAPL) plans to debut a smaller, cheaper iPad by year-end, two people with knowledge of the plans said, to help maintain dominance of the tablet market as Google Inc. (GOOG) and Microsoft Corp. (MSFT) prepare competing handheld devices.
The new model will have a screen thats 7 inches to 8 inches diagonally, less than the current 9.7-inch version, said the people, who asked not to be identified because Apple hasnt made its plans public. The product, which Apple may announce by October, wont have the high-definition screen featured on the iPad that was released in March, one of the people said.
A smaller, less expensive iPad could undercut the ambitions of Google, Microsoft and Amazon.com Inc. (AMZN) to gain traction in the advancing tablet market, said Shaw Wu, an analyst at Sterne Agee & Leach Inc. The new device will probably have a price closer to Googles Nexus 7 tablet and Amazons Kindle Fire, both of which have 7-inch screens and cost $199.
It would be the competitors worst nightmare, Wu said in an interview. The ball is in Apples court.
Trudy Muller, a spokeswoman for Cupertino, California-based Apple, declined to comment.
http://www.bloomberg.com/news/2012-07-03/here-comes-nexus-7-nightmare-the-ipad-mini.html