Bloomberg: 7-8" iPad Mini in ~October

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You fail to understand that whether it's priced at $299 or $199 Apple will only be able to make X amount of iPads. They'll sell X amount of iPads whether they're priced at $199 or $299, why throw away the extra $100? Does apple not like money?
Lower price points discourage consumers from buying competing products. It's not just about selling their own.
 
I'm sure Apple would have no problem selling it at $300 and make that extra profit. However that leaves the tablets like the Nexus 7 to thrive. I don't see Apple releasing it for more then $250. We are looking Apple as a company that wants to avoid that price umbrella and would rather eat up their own market then let another company do it. If you still can't see the long term logic look at the history with the iPod and explain why they "had" to release a cheaper iPod.

I can see it just fine. I just firmly believe that it's not gonna happen with the iPad. Where's the cheaper iPhone? Did the 3GS stop android from doing 1,000,000 activations/day? Does apple still not make a disgusting amount of money from iPhones every quarter? The market is large enough that apple can continue to have absurd quarterly profits for a long time to come. Plus if push comes to shove there's always price cuts. Apple is in a position where they can do as they like and they'll still be fine. A $200 iPad won't kill the Nexus/Fire, just like the free iPhone 4s won't kill the Galaxy S 3 and One X this Christmas.
 
Seriously?

He doesn't seem to grasp the logic behind shutting down other markets that directly compete with yours while still being able to maintain a comfortable margin.

Lower price points discourage consumers from buying competing products. It's not just about selling their own.

What good does it do you if you can't keep up with demand? Not only are you slicing your profit margins in half, but your potential buyers will start to reconsider your competitor's products when they start getting tired of waiting around for yours.

This is all hypothetically speaking of course, if Apple does release a smaller version of the iPad this quarter, which ever way it goes, this thread is gonna be fun to revisit.
 
The reason they will make it cheap (although I think it will be more like $250) is Apple thinks that the Post PC market is where all computing is going in the future and since they missed the boat against Windows on the PC front they want to completely own this space.
 
I can see it just fine. I just firmly believe that it's not gonna happen with the iPad. Where's the cheaper iPhone? Did the 3GS stop android from doing 1,000,000 activations/day? Does apple still not make a disgusting amount of money from iPhones every quarter? The market is large enough that apple can continue to have absurd quarterly profits for a long time to come. Plus if push comes to shove there's always price cuts. Apple is in a position where they can do as they like and they'll still be fine. A $200 iPad won't kill the Nexus/Fire, just like the free iPhone 4s won't kill the Galaxy S 3 and One X this Christmas.
The tablet market is much more similar to the position they were in with the iPod. I wouldn't be comparing tablets to the phone market to defend your reasoning.
 
What good does it do you if you can't keep up with demand? Not only are you slicing your profit margins in half, but your potential buyers will start to reconsider your competitor's products when they start getting tired of waiting around for yours.

This is all hypothetically speaking of course, if Apple does release a smaller version of the iPad this quarter, which ever way it goes, this thread is gonna be fun to revisit.
That's a major assumption. Did the Asus Transformer begin to sell more because the iPad 3 couldn't keep up with demand and people had to wait around?

And again, $250 wouldn't be cutting their margins in half.
 
What the fuck?

That's a major assumption. Did the Asus Transformer begin to sell more because the iPad 3 couldn't keep up with demand and people had to wait around?

And again, $250 wouldn't be cutting their margins in half.

Think about it. You really think you'd be able to walk into a store a pick up a $200 iPad this christmas? Apple would have to stop taking pre orders after the first day.


$250 is understandable, and that's about the lowest they'd go. $250 8GB. $200 is not happening.
 
The reason they will make it cheap (although I think it will be more like $250) is Apple thinks that the Post PC market is where all computing is going in the future and since they missed the boat against Windows on the PC front they want to completely own this space.
Hit it right on the nail. Apple wants the market and they know they can grab it with a low price point to drive out competitors. Not like Apple will be hurting for margins with their spectacular supply chain.
 
Yep. If Google can hit that price point, then Apple using iPad 2 parts with their supply chain management will be making profits at the same price. Plus they have high margin accessories and the app / music store to supplement.

Just because they can doesn't mean that they should. I'd fire Tim Cook on the spot if he did that personally. Apple's brand and competitive market position allow Apple to sell products at a higher price point than everyone else and nobody should take the stupid approach of competing for the bottom. They need a product in this space, and they don't need price parity to be successful.
 
Guesses as to BOM are only one part of the equation, which is one reason why Apple announced nearly 50% margins (increased from the previous quarter) in the same quarter that iPad 2 price-dropped by $100 and the "lower margin" retina iPad was released. They are very successful in upselling higher storage, cellular connectivity, AppleCare+, cables, Smart Covers, and Smart Cases.

I'm not sure Apple would have trouble keeping up with demand if these are mostly all parts that have been in their supply chain for over a year. If the screen is the 3GS screen, and screens are usually the limiting factor in meeting demand, they've had that in the chain for 5 years.
 
Don't think so, but its not as abysmal as people are making it to be.

So 'but the preorders said 2-3 weeks!' is just clinging to the one thing they got right? What else was handled well?

If his contention is that the Nexus deserves (and would have hugely benefitted from) a better launch, I think that's fair. So too is the thought that that's important if a cheaper iPad launches. I too think people should have been lining up for the Nexus 7. Luckily I think at least word of mouth will help going forward and we may see that yet. That's one thing Google can't screw up.

I mean, Amazon's Fire launch blew this away. And that was for a pretty average product.
 
Just because they can doesn't mean that they should. I'd fire Tim Cook on the spot if he did that personally. Apple's brand and competitive market position allow Apple to sell products at a higher price point than everyone else and nobody should take the stupid approach of competing for the bottom. They need a product in this space, and they don't need price parity to be successful.
They don't really sell their tablet for a higher price compared to their competition though. In general they are right on par with the competition.
 
They don't really sell their tablet for a higher price compared to their competition though. In general they are right on par with the competition.

They gave birth to the market, and they set the price. Their competitors tried to follow suit and failed(see: Xoom, Thrive, Galaxy Tab). Hence the tablet price wars.
 
So 'but the preorders said 2-3 weeks!' is just clinging to the one thing they got right? What else was handled well?

If his contention is that the Nexus deserves (and would have hugely benefitted from) a better launch, I think that's fair. So too is the thought that that's important if a cheaper iPad launches. I too think people should have been lining up for the Nexus 7. Luckily I think at least word of mouth will help going forward and we may see that yet. That's one thing Google can't screw up.

I mean, Amazon's Fire launch blew this away. And that was for a pretty average product.

Clinging? More like not being insane about not having a date for an order that had no specific date.
 
Has Apple ever sold a product for basically no profit or even a loss?
Software and OS only. Hardware is always sold at a nice profit, and that's why I think you won't see a 7.85" iPad for less than $299.
People who pay $199 for a Nexus 7 would pay $299 for a similar iPad for looks, design and materials (real aluminum instead of plastic), brand name, software, and ecosystem.
 
I really hope this happens because it will send Apple's stock into the stratosphere (along with iPhone 5). I invested $20k at $530 a share, I need that stock to go up and up and up. It's been hovering around $600 for too long!

Also, no retina no sale. Sorry but iPhone 3GS pixel density is ass. I don't see how they could go with retina yet without eating into their legendary profit margins. I would love a smaller iPad, but I won't touch it until retina hits it in 2013/2014.
 
Also, what a mini iPad might look like in the real world.

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http://www.imore.com/apple-iphone-5...ptember-12-iphone-5-release-date-september-21

iMore has heard that Apple is planning to debut the new iPhone at a special event on Wednesday, September 12, 2012, with the release date to follow 9 days later on Friday, September 21. This information comes from sources who have proven accurate in the past.

The iPad mini will be announced at the same September 12 event, as will the new iPod nano. We haven't heard a release date for the iPad mini yet, but it could be the same as the iPhone 5. It seems likely the new iPod touch will make an appearance on September 12 as well, though we haven't heard any specific information about that yet either.

iMore has been pretty accurate about pinpointing event dates.

Revealed the iPad 3 event date: http://www.macrumors.com/2012/02/13/ipad-3-announcement-on-march-7th-with-quad-core-and-4g-lte/
Revealed the iPhone 4S launch: http://www.macrumors.com/2011/08/12...5-launch-on-october-7th-no-ipad-3-until-2012/
 
I was hoping that new iPod nano was actually an iPhone mini :|

I'd love it if they could come up with a $200 contract-free unlocked iPhone Mini, but I don't suppose that's possible. Even now an unlocked 3GS is $350, and even if they can manufacture an iPhone mini for less than $200, I doubt they would want to give up on their fat margin.

Still though, Apple has been courting prepaid carriers these last few months (iPhone is now on Virgin and Cricket), so maybe it's not out of the question.

Still though, it's best to temper your expectations with Apple. Whatever awesome amazing thing you think they might do, expect them to do about 15% of that. I remember when the "iPhone 5" (later revealed to be the 4S) was supposed to have a 4"+ inch screen, 4G LTE support, and a wide home button.
 
Damn, I'm actually considering getting both the iPhone 5 and an iPad mini this fall, but my bank account starts to ache just thinking about. I'll definitely cop an iPad that's ~$200-300, but not completely sold on the iPhone yet. It'll be my first iPhone too.
 
So do we have all the tablet announcement date yet?

Aug 15: Galaxy Note 2 (5.5" 1280X800?)
Aug/Sep : Kindle Fire 2 (Both 7" and 10", 1280X800?)
Sep 12: iPad mini (7.9" 1024X768?)
Oct 26: Surface RT (10" 1366X768)

What is MS doing, can't they release the tablet sooner?
 
So do we have all the tablet announcement date yet?

Aug 15: Galaxy Note 2 (5.5" 1280X800?)
Aug/Sep : Kindle Fire 2 (Both 7" and 10", 1280X800?)
Sep 12: iPad mini (7.9" 1024X768?)
Oct 26: Surface RT (10" 1366X768)

What is MS doing, can't they release the tablet sooner?

They most likely don't want to release it before Windows 8 which is exactly what they should do to build anticipation.
 
So do we have all the tablet announcement date yet?

Aug 15: Galaxy Note 2 (5.5" 1280X800?)
Aug/Sep : Kindle Fire 2 (Both 7" and 10", 1280X800?)
Sep 12: iPad mini (7.9" 1024X768?)
Oct 26: Surface RT (10" 1366X768)

What is MS doing, can't they release the tablet sooner?

Kindle Fire is rumored to be an 8.9" 1920x1200 not 10" 1280x800

Galaxy Note 10.1 might also be released at the Aug 15 event.
 
So why the fuck are they making an 8" iPad instead of a 6-7" one?

A 7.85 at 4:3 offers 40% more surface area than a 7.0 16:9 tablet.

I like my Kindle Fire, but web browsing is terrible. Mobile sites look awful blown up. Desktop sites look awful shrunk down. It doesn't help that a third of the screen (in landscape mode) is lost to a web address bar, back/forward buttons, etc.

The extra 40% offered by an iPad Mini could be significantly helpful.
 
To try and make web browsing useable on the smaller screen. Perhaps they found it to be better in a 8" environment.

... that email says 7" is already usable.

A 7.85 at 4:3 offers 40% more surface area than a 7.0 16:9 tablet.

I like my Kindle Fire, but web browsing is terrible. Mobile sites look awful blown up. Desktop sites look awful shrunk down. It doesn't help that a third of the screen (in landscape mode) is lost to a web address bar, back/forward buttons, etc.

The extra 40% offered by an iPad Mini could be significantly helpful.
The Kindle Fire has a resolution of 1200x600 which is the main reason why web browsing is so poor.

By bumping the size up to 8" you loose most of the portability advantages that was the reason for the smaller tablet in the first place. Sure it's smaller than a 9.7" iPad but it's not significantly smaller. It's like comparing a Samsung 8.9" tablet to their 10.1" tablet. The 8.9" is obviously smaller but still not small enough to move it into the portable category.
 
So why the fuck are they making an 8" iPad instead of a 6-7" one?

Because that would fuck over developers. A big reason developers flock to iOS and are far less interested in Android is the lack of fragmentation. A 7.85 iPad would use the same resolution as iPad 1/2.
 
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