Tablet rumors: February production start, 10-inch LCD screen
Checks within Apple's supply chain have led to a new round of tablet-related rumors from one analyst, who believes the device will launch in March or April of 2010 with a 10.1-inch LCD screen.
Yair Reiner, analyst with Oppenheimer, revealed his latest tablet news in a note to investors issued Wednesday morning. He also said that Apple has been reaching out to book publishers with a "very attractive proposal" for offering content on a forthcoming ebook platform.
Reiner believes the tablet could provide an additional 50 cents to 75 cents in earnings per share for AAPL stock.
"Our checks into Apple's supply chain indicate the manufacturing cogs for the tablet are creaking into action and should begin to hit a mass market stride in February," the note said. "At this stage Apple appears to be sizing its supply chain to support production of as many as 1M units per month."
Reiner said Apple would likely need at least five or six weeks of inventory built up before it can release the product, positioning a likely launch in March or April. Such a launch would assume there are no production issues, like the one believed to have led to the last-minute removal of a camera from the latest iPod touch.
He also said that the device will have a 10.1-inch multi-touch display using LTPS LCD technology, the same as on the iPhone. He specifically disputed an earlier report that a high-end model would sport an OLED display.
Apple is also said to be offering publishers a deal that will allow them to release their content on other online stores, such as for Amazon's Kindle, or for new, forthcoming digital storefronts from major publishers. But Apple could sweeten the pot by offering a better deal than some companies, like Amazon, currently offer.
"Contacts in the U.S. tell us Apple is approaching book publishers with a very attractive proposal for distributing their content," Reiner said. "Apple will split revenue 30/70 (Apple/publisher); give the same deal to all comers; and not request exclusivity. We believe the typical Kindle split is 50/50, rising to 30/70 if Kindle is given ebook exclusivity."
He went on to say that the Kindle has "disgruntled the publishing industry" by strong-arming companies into exclusivity through a "wolfish cut of revenue" taken if they sell their content elsewhere. The Kindle also does not allow advertising in content it sells for its device.
"The tablet is set to change that," Reiner said. "It should also make ebooks more relevant for education by simplifying functions such as scribbling marginalia."
Oppenheimer predicts that the company could sell between 1 million and 1.5 million devices per quarter at an average selling price of $1,000. The company has a price target of $235 for AAPL stock.
Yair Reiner, analyst with Oppenheimer, revealed his latest tablet news in a note to investors issued Wednesday morning. He also said that Apple has been reaching out to book publishers with a "very attractive proposal" for offering content on a forthcoming ebook platform.
Reiner believes the tablet could provide an additional 50 cents to 75 cents in earnings per share for AAPL stock.
"Our checks into Apple's supply chain indicate the manufacturing cogs for the tablet are creaking into action and should begin to hit a mass market stride in February," the note said. "At this stage Apple appears to be sizing its supply chain to support production of as many as 1M units per month."
Reiner said Apple would likely need at least five or six weeks of inventory built up before it can release the product, positioning a likely launch in March or April. Such a launch would assume there are no production issues, like the one believed to have led to the last-minute removal of a camera from the latest iPod touch.
He also said that the device will have a 10.1-inch multi-touch display using LTPS LCD technology, the same as on the iPhone. He specifically disputed an earlier report that a high-end model would sport an OLED display.
Apple is also said to be offering publishers a deal that will allow them to release their content on other online stores, such as for Amazon's Kindle, or for new, forthcoming digital storefronts from major publishers. But Apple could sweeten the pot by offering a better deal than some companies, like Amazon, currently offer.
"Contacts in the U.S. tell us Apple is approaching book publishers with a very attractive proposal for distributing their content," Reiner said. "Apple will split revenue 30/70 (Apple/publisher); give the same deal to all comers; and not request exclusivity. We believe the typical Kindle split is 50/50, rising to 30/70 if Kindle is given ebook exclusivity."
He went on to say that the Kindle has "disgruntled the publishing industry" by strong-arming companies into exclusivity through a "wolfish cut of revenue" taken if they sell their content elsewhere. The Kindle also does not allow advertising in content it sells for its device.
"The tablet is set to change that," Reiner said. "It should also make ebooks more relevant for education by simplifying functions such as scribbling marginalia."
Oppenheimer predicts that the company could sell between 1 million and 1.5 million devices per quarter at an average selling price of $1,000. The company has a price target of $235 for AAPL stock.
Comments
Just another analyst talking. I believe it when I see it.
$1000? Really. That's much to high. It had better play flash and record at that price and not just be a book reader.
Peace.
"It should also make ebooks more relevant for education by simplyfing functions such as scribbling marginalia."
Perfect business case and an inexhaustible market. Where then are all those schoolbook publishers wandering around now?
The report sounds pretty crappy with terms like this in it "are creating into action". You only use terms like that when you don't know what you're talking about.
Apple Insider why don't you include, or make available, full copies of these analyst reports you source news from?
The average price implies there will be models more expensive than macbook. Remember this thing will have no keyboard or mouse.
This analyst doesn't appear to understand apple market dynamics.
Because it will at $1000
The iPhone surely was. I stood in line for three hours for the first one. The $100 rebate was nice, but I would have been happy regardless.
What's important is that these Apple products have profoundly changed their respective industries, as well as people's lives.
The Apple Tablet stands to do it again, especially if Apple is offering decent terms and non-exclusivity. Kindle is about to be blown out of the water. And this major-publisher alliance is going to be hard put to compete, as well.
Wow I had no idea the Apple tablet was going to fail...
Because it will at $1000
I'm waiting for the $200 CrunchPad that Mike Arrington says will be "dead simple" to make. He's promising it to us "any day now".
In case you hadn't noticed, there are plenty of people who are willing to pay if the device is "cool" enough.
The iPhone surely was. I stood in line for three hours for the first one. The $100 rebate was nice, but I would have been happy regardless.
What's important is that these Apple products have profoundly changed their respective industries, as well as people's lives.
The Apple Tablet stands to do it again, especially if Apple is offering decent terms and non-exclusivity. Kindle is about to be blown out of the water. And this major-publisher alliance is going to be hard put to compete, as well.
The Apple tablet stands to do nothing. The "plenty of people" you refer to are the tech geeks and Apple fanbois. About 5 million people who live in the U.S. That's nothing. Its a drop in the bucket. That's exactly what Apple could count on if was an Apple Logo Turntable being released instead.
The fan base is not a market. The fan base is not a market. The fan base is not a market.
The only reason for Apple's break out success with the iPhone, as an Apple product, is that its a PHONE. One of the most popular types of devices, and one of the largest retail markets in the world. Larger than the PC which they've already struggled to make headway in.
They designed an excellent phone, and have sold a LOT. They will continue to. However. Apple did not create Mobile Phone Buyers, or the market they buy in. They were already there, desperately waiting for a great product to come along.
Where is the market for this device thats waiting for greatness to come? It's not there, And a $1000, its nothing more than a fantasy.
I'm waiting for the $200 CrunchPad that Mike Arrington says will be "dead simple" to make. He's promising it to us "any day now".
you'll wait a long time because it's now the Joo Joo, costs $500 and Mike is no longer in the picture, just Fusion Garage. See http://thejoojoo.com
at least it isn't a rumor and you can get it this Friday, the 11th!
Then again, this is just an analyst's rumor (two big strikes right there).
I'll wait to see what actually ships (if anything).
The Apple tablet stands to do nothing. The "plenty of people" you refer to are the tech geeks and Apple fanbois. About 5 million people who live in the U.S. That's nothing. Its a drop in the bucket. That's exactly what Apple could count on if was an Apple Logo Turntable being released instead.
The fan base is not a market. The fan base is not a market. The fan base is not a market.
The only reason for Apple's break out success with the iPhone, as an Apple product, is that its a PHONE. One of the most popular types of devices, and one of the largest retail markets in the world. Larger than the PC which they've already struggled to make headway in.
They designed an excellent phone, and have sold a LOT. They will continue to. However. Apple did not create Mobile Phone Buyers, or the market they buy in. They were already there, desperately waiting for a great product to come along.
Where is the market for this device thats waiting for greatness to come? It's not there, And a $1000, its nothing more than a fantasy.
Apple has gained tremendous non "fan based" mindshare through the sale of the iphone and Ipod touch. I believe you are missing this very critical point.
$1000? Really. That's much to high. It had better play flash and record at that price and not just be a book reader.
Peace.
agreed... you might as well buy a macbook for that price?
The Apple tablet stands to do nothing. The "plenty of people" you refer to are the tech geeks and Apple fanbois. About 5 million people who live in the U.S. That's nothing. Its a drop in the bucket. That's exactly what Apple could count on if was an Apple Logo Turntable being released instead
I agree with your thoughts, and i was wondering about the "tech geeks and Apple fanbois. 5 million people who live in the U.S."
how did you come by this figure?
Apple has gained tremendous non "fan based" mindshare through the sale of the iphone and Ipod touch. I believe you are missing this very critical point.
i know quite a few people with an iphone, most of them not apple geeks etc, most of them not even apple computer users. they're all happy with the iphone, but not one of them has any interest yet in buying a tablet. of course they may become interested if and when it is announced, but right now none of these non-geeks can see a point in a tablet
as the other poster stated: the interest in a "new phone" was there before iphone was released, many of us felt we were lacking an intelligent, well designed phone, but not many people feel they are lacking a tablet in their daily lives. most i've talked to ask me "i have a laptop and an iphone already, why would i want a third device to carry around, a computer without a keyboard but too big to put in my pocket?"
when i iphone was launched, it was clear why it was desirable.
The high-end touch is $400, and you are looking for the same price point for something with 4-5 times the screen real estate? I'd guess a $600-800 price range would be more reasonable. And if it's at the low end of that range Apple would probably have to lower the price of the touch (which would cause sales of the touch to sky rocket).
Apple has gained tremendous non "fan based" mindshare through the sale of the iphone and Ipod touch. I believe you are missing this very critical point.
There's a huge difference between iphone and ipod owners and Apple lemmings. You're missing that point. Just because people bought the ipod/iphone does not make them top of the line geeks/apple fanbois willing to spend $1000's of dollars on anything apple puts out.