Apple tablet speculation: production costs, internal components
With a rumored Jan. 27 event fast approaching, speculation regarding Apple's still-unannounced tablet continues to mount. This week, one analyst shared alleged information on the device's internal components, while another attempted to project the cost of its parts.
Analyst Ashok Kumar of Northeast Securities spoke with AppleInsider this week about the device, which is expected to debut this month and ship in March. Kumar said the tablet processor will be manufactured by Samsung and will be based on the Cortex-A8 ARM architecture. He believes it will have a speed of about 1GHz.
However, some have assumed that the tablet, along with the next iPhone, would be based on ARM's new Cortex-A9 architecture. The reference designs for the next-generation chip allow either two or four cores with a more power efficient design.
Though Intel and its low-power, low-cost Atom processor were rumored in 2007 to be a part of Apple's forthcoming products, it never happened. Since then, it has been believed that Apple's $278 million buyout of fabless chip designer P.A. Semi would allow the company to create its own ARM-based designs for devices.
Ashok also said sources have told him that the tablet will be sold in two ways: a carrier-subsidized model with a wireless data contract, and an unlocked, more expensive model not tied to a wireless provider.
"They're going to have one subsidized and one direct to the consumer model," he said.
Kumar also said the hardware will have a baseband supplied by Infineon, the same as in the iPhone.
In November, he also told AppleInsider that a CDMA-only iPhone with a chipset from Qualcomm will be released for the Verizon network in the U.S. in 2010. He said a new dual-mode chip from Qualcomm will not be available in time for a summer 2010 launch for the new iPhone.
Last fall, Kumar correctly stated that Google would release its own custom-built handset. The Nexus One was officially unveiled by Google Tuesday. However, Kumar was also criticized after he noted that iPhone sales in China were "disappointing" before the device was even on sale.
Also this week, Jeffrey Fidacaro of Susquehanna Financial provided a projection of how much the internal components of Apple's tablet might cost -- without even knowing for sure what they are. The details were revealed in a note to investors this week, as relayed by Fortune Brainstorm Tech.
While the calculated $340 cost of components has been widely reported, that total is based on the inclusion of a 4200rpm 160GB hard disk drive. Given Apple's push for solid state drives and NAND flash memory in its mobile devices, it is unlikely that the Apple tablet would include a spinning hard drive.
Fidacaro said if Apple opts for a 128GB SSD, it would add several hundred dollars to the cost of the device.
The analyst also assumes the device will run on an Intel Atom processor, would include 2GB of DRAM, and sport a 3.2 megapixel camera. If Apple went with an ARM-based processor, Fidacaro said, the tablet's cost could be reduced by as much as $50.
Susquehanna Financial Group estimates, via Fortune Brainstorm Tech.
Apple's tablet is expected to be unveiled this month at an event on Wednesday, Jan. 27. Analysts expect it to cost less than $1,000 and to compete with both the e-book and netbook markets.
Analyst Ashok Kumar of Northeast Securities spoke with AppleInsider this week about the device, which is expected to debut this month and ship in March. Kumar said the tablet processor will be manufactured by Samsung and will be based on the Cortex-A8 ARM architecture. He believes it will have a speed of about 1GHz.
However, some have assumed that the tablet, along with the next iPhone, would be based on ARM's new Cortex-A9 architecture. The reference designs for the next-generation chip allow either two or four cores with a more power efficient design.
Though Intel and its low-power, low-cost Atom processor were rumored in 2007 to be a part of Apple's forthcoming products, it never happened. Since then, it has been believed that Apple's $278 million buyout of fabless chip designer P.A. Semi would allow the company to create its own ARM-based designs for devices.
Ashok also said sources have told him that the tablet will be sold in two ways: a carrier-subsidized model with a wireless data contract, and an unlocked, more expensive model not tied to a wireless provider.
"They're going to have one subsidized and one direct to the consumer model," he said.
Kumar also said the hardware will have a baseband supplied by Infineon, the same as in the iPhone.
In November, he also told AppleInsider that a CDMA-only iPhone with a chipset from Qualcomm will be released for the Verizon network in the U.S. in 2010. He said a new dual-mode chip from Qualcomm will not be available in time for a summer 2010 launch for the new iPhone.
Last fall, Kumar correctly stated that Google would release its own custom-built handset. The Nexus One was officially unveiled by Google Tuesday. However, Kumar was also criticized after he noted that iPhone sales in China were "disappointing" before the device was even on sale.
Also this week, Jeffrey Fidacaro of Susquehanna Financial provided a projection of how much the internal components of Apple's tablet might cost -- without even knowing for sure what they are. The details were revealed in a note to investors this week, as relayed by Fortune Brainstorm Tech.
While the calculated $340 cost of components has been widely reported, that total is based on the inclusion of a 4200rpm 160GB hard disk drive. Given Apple's push for solid state drives and NAND flash memory in its mobile devices, it is unlikely that the Apple tablet would include a spinning hard drive.
Fidacaro said if Apple opts for a 128GB SSD, it would add several hundred dollars to the cost of the device.
The analyst also assumes the device will run on an Intel Atom processor, would include 2GB of DRAM, and sport a 3.2 megapixel camera. If Apple went with an ARM-based processor, Fidacaro said, the tablet's cost could be reduced by as much as $50.
Susquehanna Financial Group estimates, via Fortune Brainstorm Tech.
Apple's tablet is expected to be unveiled this month at an event on Wednesday, Jan. 27. Analysts expect it to cost less than $1,000 and to compete with both the e-book and netbook markets.
Comments
that total is based on the inclusion of a 4200rpm 160GB hard disk drive
P.S. Surprisingly, those "scans" of "internal Apple documents" saying "Upto widget based" are not on the frontpage of the site yet.
I'm guessing the latter.
20 more days of these analysts, analyzing the hell out of this not-yet-seen product.. yippee..
Kumar said the tablet processor will be manufactured by Samsung and will be based on the Cortex-A8 ARM architecture. He believes it will have a speed of about 1GHz.
BULLSH*T.
First off, Apple has virtually removed all MacBook's from it's lineup except the wildly popular white MacBook. So something has to go there and it won't be a weak 1Ghz machine that's for sure. Not with the GUI UI and fancy effects like Coverflow that Apple likes to do to make hardware sales.
Second Samsung is a competitor to Apple, they copy anything and invade markets. Why do business with that when you can do it all yourself with companies that don't have a retail front?
ARM? don't think so, Intel has got a lineup of multi-core cool processors and cheap prices and lots of volume potential. ARM copies Intel and has to follow them in order to keep it's processors able to run the majority of software out there, it's a niche player now.
Apple could use their PA Semi, it's a hell of a risk though, a new market with a new processor and lots of unforeseeable problems that can ruin their chances of success. I say they use Intel first and then later gradually introduce their chips, but I don't think they can bring the price per unit down enough.
Kumar should just shut the fsck up.
Moreover, I predict it will have an "installed OS resembling OSX". Ah, yes "it will be designed in Cupertino and made in China".
Someone cares to offer me a job in financial analysis? I think, with these bold predictions, that I am ready for primetime in Wall Street
BULLSH*T. Samsung is a competitor to Apple, they copy anything and invade markets. Why do business with that when you can do it all yourself with companies that don't have a retail front?
Agreed. As soon as I saw "Samsung" listed I was like "Whaaaaat??" Besides, I thought we already had manufacturing leaks from Foxconn?
YES the iPhone would sell a TON more at $199.00 or lower, and the same will go for the "AppleTab". And as for subsidizing it, what in hell is that all about. Cut the sale of these by 75% or more, if you can't get one to use, without being tied to some damn Verizon, AT&T contract or whatever.
This WILL be an interesting next 20 days or so (and way to long a wait to get the final answers).
My next question is, when will we start hearing something, anything about the next Desktop Units (formally known as COMPUTERS), Monitors, or anything else that Apple USE to be known for.
Skip
BULLSH*T.
First off, Apple has virtually removed all MacBook's from it's lineup except the wildly popular white MacBook. So something has to go there and it won't be a weak 1Ghz machine that's for sure.
Second Samsung is a competitor to Apple, they copy anything and invade markets. Why do business with that when you can do it all yourself with companies that don't have a retail front?
ARM? don't think so, Intel has got a lineup of multi-core cool processors and cheap prices and lots of volume potential. ARM copies Intel and has to follow them in order to keep it's processors able to run the majority of software out there, it's a niche player now.
Kumar should just shut the fsck up.
Good Lord you're an idiot.
The MacBook is going nowhere so I have no idea what you are talking about.
Samsung have supplied Apple for years with components for the iPhone and iPods
It is highly probable the processors will dual A9's. ARM don't just copy Intel (where do you get this shit from?) and the ARM's are considered superior to any of the Atom's so far.
Well from what folks have been saying and asking fro, Apple BETTER have a tablet starting around $399.00 or it will not be as big a deal as we hoped. ...
Unless it's subsidised, you will definitely not see an Apple tablet at $399.00.
The tablet is intended to replace the netbook form factor. Any decent netbook (that works) is between $600 and $800. Also, like most PC's, netbooks have razor thin margins.
Why would Apple make an advanced technology fancy replacement for a netbook and then price it lower than the lowest price POS netbook on the market? Apple also historically never goes below retail style margins (30% or so) although they've dipped a bit lately. Even if the hardware cost was identical, you would see the Apple tablet at 10 or 20% higher than the comparable netbook hardware.
My prediction for iSlate launch cost: $900 - $1200
Remember the Newton?
If it costs anywhere near 1000, then what´s the edge of this machine over a laptop?
The idea is to get some additional portability/functionality but factoring in the downside of a tablet too (no file saving, limited capability of software, etc.), which means selling it for less than a Macbook. Guess some still think that they are not competing products....
It´s too soon to speculate.
The new Apple tablet would also replace the Apple TV or allow you to browse the internet on your TV wirelessly from your sofa. How much value would something like that add to it?
Meanwhile, Google is closing the gap with the Nexus versus the iPhone. They sure moved fast. I imagine they will have a tablet too.
Well from what folks have been saying and asking fro, Apple BETTER have a tablet starting around $399.00 or it will not be as big a deal as we hoped.
YES the iPhone would sell a TON more at $199.00 or lower, and the same will go for the "AppleTab". And as for subsidizing it, what in hell is that all about. Cut the sale of these by 75% or more, if you can't get one to use, without being tied to some damn Verizon, AT&T contract or whatever.
This WILL be an interesting next 20 days or so (and way to long a wait to get the final answers).
My next question is, when will we start hearing something, anything about the next Desktop Units (formally known as COMPUTERS), Monitors, or anything else that Apple USE to be known for.
Skip
Have you been paying attention to the products coming to the market right now? $399.99 would be budget priced (it might be possible with a carrier subsidy, although I would still expect it to be at least $100 more than that).
It would be fantastic if the Apple tablet has an Intel atom inside, because that means Mac OS X (touch) inside. Even if it has reduced battery life.
I don't think OSX touch would be fantastic in a tablet. Windows 7 comes with built in tablet and multi touch support, it certainly isn't a fantastic tablet OS. As long as you remain married to an OS and legacy applications designed for use with a keyboard and a mouse, you will not have a great tablet operating system. I think this will run an updated variant of iPhone OS, thus Atom is likely out.
I can't see Arm Cortex A8 in this thing either. The A9 seems to be by far the most likely, you would want to bump the specs of the tablet (over the iPhone) just because of the increase in screen resolution alone. Additional features like multitasking and more powerful apps will also want increased horsepower (and dual core). The biggest question to me is who makes the chip. Will it be Samsung as suggested here, or one from PA Semi?