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Rumor: Apple to release sub-$250 7-inch 8GB iPad in October

post #1 of 121
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Rumors of a new, smaller iPad continue to surface, with the latest report claiming Apple is preparing to launch a 7-inch tablet this October with 8 gigabytes of storage for less than $250.

The new iPad could cost as little as $200, according to iMore, which cited a "reliable" source. If Apple were to hit the $200 mark, it would compete more directly with Amazon's $199 Kindle Fire, but such a price would make it near impossible for Apple to achieve the same margins it does with the rest of its product lineup.

The source of Thursday's rumor did correctly pinpoint the March 7 date for Apple's new iPad unveiling before the event was announced by the company, and it also accurately predicted that the third-generation iPad would feature high-speed 4G LTE connectivity. The site also claimed in March that Apple's next iPhone will arrive this fall with 4G LTE and a 3.5-inch screen.

The latest rumor comes on the heels of another report from the Far East issued earlier this week, which claimed that Apple plans to launch a smaller, 7-inch iPad even sooner, in August of this year.

Though the report identified a smaller iPad as a 7-inch model, iMore wouldn't commit to that size, saying it was using the number "generically." Other reports have given a more specific size of 7.85 inches, or nearly two inches smaller than the current 9.7-inch iPad.

Such a device has been rumored to have a screen resolution of 1,024 by 768 pixels, which is the same resolution as the first-generation iPad and the iPad 2. That would allow current applications written for the iPad to run on a new, smaller device without any modifications.



But in addition to lowering margins, a highly aggressive sub-$250 price point for a new 8-gigabyte iPad would undercut the prices of most of Apple's iPod touch lineup, which sells for $299 with 32 gigabytes of capacity and $399 with 64 gigabytes.

As for fending off the Kindle Fire, recent data suggests Amazon's $199 tablet has failed to maintain momentum following the holiday shopping season. IDC reported earlier this month that shipments of the Kindle Fire saw a "steep drop" in the first quarter of 2012, dropping from a 16.8 share of shipments in the fourth quarter of 2011 to just 4 percent in the first three months of 2012.
post #2 of 121

I heard the Kindle Fire was mostly bought by people to give away as gifts (hence the dropoff in sales after the holidays).

 

A local radio show host that got one for Christmas likened the Fire to fruitcakes:  you buy them only for other people, but no one wants to buy one for themselves. lol.gif

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post #3 of 121

My theory is ... Apple is doing their best to find the mole/leak coming from their high profile meetings. 

For example ... Tim Cook privately setup `Meeting One` for 20 people. Cook mentioned "iPad Mini" to 'em. Tim Cook also setup `Meeting Two` for 20 more different people. He mentioned "iPad Midget" to 'em.

So whoever leaked "iPad Midget" coming from his profile meeting then he knows that Meeting Two is responsible, not the other. He will hammer 'em down till the last one who was the responsible for it.

Hope this make sense.

post #4 of 121

I guess the people who persist with these rumors are hoping this becomes a self-fulfilling prophecy.

 

I don't think it will happen.

post #5 of 121

In what world would it cost $250? An iPod Touch start at $199 and goes up from there. It's not going to happen because the cost of parts would prohibit Apple from making any kind of profit off a $250 device.

 

Use brains, not drug induced rumors.

post #6 of 121

Rumor: Apple to release no-data, no-apps 2.5" 4GB iPhone in 2008.

 

OH WAIT.

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Originally Posted by Marvin

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post #7 of 121

An reason for this could be...

Not every product a manufacturer makes is expected to bring in the same profit margins.

Could be as simple as expanding their markets, or locking more people in to their platform so that when it comes time to upgrade... they stay with the manufacturer.

 

Similarly... While GM would love to sell everyone an expensive and profit ladened Corvette or Cadillac...  but many can only afford a Chevy Sonic.  And when that Chevy Sonic owner gets promoted and more cash down the road, hopefully they go bigger with Chevy.

 

The difference with AAPL is, will the markets understand a lower overall margin trade-off for the benefit of more sales and future growth opps?

post #8 of 121

this is one of the dumbest things i have ever heard in my life. 

post #9 of 121
Quote:
Originally Posted by supremedesigner View Post

My theory is ... Apple is doing their best to find the mole/leak coming from their high profile meetings. 

For example ... Tim Cook privately setup `Meeting One` for 20 people. Cook mentioned "iPad Mini" to 'em. Tim Cook also setup `Meeting Two` for 20 more different people. He mentioned "iPad Midget" to 'em.

So whoever leaked "iPad Midget" coming from his profile meeting then he knows that Meeting Two is responsible, not the other. He will hammer 'em down till the last one who was the responsible for it.

Hope this make sense.

... for a "supreme designer" you sure don't know how to format text.  :)

 

interesting theory though

post #10 of 121
Quote:
Originally Posted by Gazoobee View Post
interesting theory though

 

And they've been known to do that in the past, too, so I buy it.

Originally Posted by Marvin

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Originally Posted by Marvin

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post #11 of 121

So instead of a 7" iPad, Apple brings out the 7" iPod Touch Pro (64GB), drops the price on regular iPod Touch to $99 (16GB) $199 (32GB).

 

It could happen.

 

It could.

 

Makes as much sense as the rumor, maybe a tad more. 

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post #12 of 121
Quote:
Originally Posted by BigBillyGoatGruff View Post

I guess the people who persist with these rumors are hoping this becomes a self-fulfilling prophecy.

 

I don't think it will happen.

 

I used to think the same and mostly still do, but recently I've begun to think that there are other form factors of iOS on the horizon.  

 

consider this for example: 

 

wwdc2012-june-11-15.jpg

 

 

This suggests rather strongly to me that the whole event will be about the (incredibly popular and already much copied) iPod nano form factor.  If Apple is beginning to see iOS as a sort of workhorse OS that can exist in multiple form factors, (and the evidence is that they do), then why not a mini tablet form factor as well? 

 

I'm still not sure we will see a smaller iPad this year , but there will definitely be more shapes and sizes of iOS devices in the future.  

 

There is also the possibility of dedicated devices.  What if they release a 7" tablet but instead of being a mini iPad it's a dedicated device for writers like a digital steno pad with a built in digitiser for pen input?  The Galaxy note, despite the drubbing it has received in the press has some very ardent fans already. 

 

If and when they get around to integrating stylus input into iOS devices, I think it's a rather obvious move to go bigger as well as smaller.  As an artist myself, I would kill for an 18 or 20 inch iPad that allowed for using a proper stylus.  Such a device would rule the market in it's category and be better than anything Wacom ever envisioned in their wildest dreams.  

post #13 of 121

Doesn't Amazon make a loss on the Fire and this is with cheaper/slower components than other tablets. I could see Apple making a 7" tablet (I wouldn't mind one) but it won't be this cheap. Minimum price would likely be $300

post #14 of 121
Quote:
Originally Posted by skyzlmt View Post

An reason for this could be...

Not every product a manufacturer makes is expected to bring in the same profit margins.

Could be as simple as expanding their markets, or locking more people in to their platform so that when it comes time to upgrade... they stay with the manufacturer.

 

Similarly... While GM would love to sell everyone an expensive and profit ladened Corvette or Cadillac...  but many can only afford a Chevy Sonic.  And when that Chevy Sonic owner gets promoted and more cash down the road, hopefully they go bigger with Chevy.

 

The difference with AAPL is, will the markets understand a lower overall margin trade-off for the benefit of more sales and future growth opps?

 

Um-m-m-m, no. Production costs for iPads are not determined by the gram. Yes, the aluminum and glass in an iPad cost by the gram, but these costs are minor compared to everything else associated with the device. A different size iPad requires new production tools, new packaging, new transportation strategies. Most of the software can be used as is, but there are still costs associated with the different size. The production costs of a new smaller iPad are possibly greater than for the larger model, but Apple sells it for less? This does not sound like a smooth move to me. 

post #15 of 121

Why not make the iPod Touch a little bigger yet keep the price the same. That would kill off the notion of a 7-inch iPad and yet offer a good, affordable product for those who just want something they can slip into an average-sized pocket. Makes sense and it does seem that a choice has to be made. Can't see the current Touch form factor co-existing with a similarly priced 7-inch tablet and the 7-inch tablet doesn't fit as a truly pocket-worthy device. As such, it doesn't add up that Apple would kill the Touch and replace it with a 7-inch tablet. Not going to happen. 

post #16 of 121
I would expect a minimum price of $350. Yet why do it? Apple already has great products and making a smaller form factor would lower sales of the more profitable higher value parts.

50% of $500 is a lot more than 50% of $350. Moving that way means a business shift to money from content, not money from hardware as we have today.
post #17 of 121

Oh please, stop bringing back this non-sense rumor that being started by Digitimes 2 years ago.

Here is some point why this rumors is bogus.

 

1) New iOS devices in testing phase should be already referenced into iTunes and iOS API like it was for past iPhone and the iPad model.

 

2) Apple already has price tag for iPod shuffle (under $100), iPod Nano (under $200) and iPod touch (under $300), it gives very little place for a new product between the still sold iPad 2 (under $400) and the iPod Touch.

 

3) It will fragment the platform further by adding a third form factor for Apps to support, causing issue with existing apps who has never intend to be used on a smaller screen. 

post #18 of 121
Quote:
Originally Posted by Gazoobee View Post
wwdc2012-june-11-15.jpg

 

…the whole event will be about the… …iPod nano form factor.

 

163146

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #19 of 121

This could work as a "poor person's" iPad. If limited to one 8 gig configuration, it wouldn't cannibalize iPod Touch or iPad sales and would certainly hurt Android/E-reader sales. With iCloud, you can just download what you want, when you want, and don't need that much on board memory...

post #20 of 121

This is much like all the other rumors of iPad mini 7" device, it doesn't make sense because Apple does not do response product creating just because other makers have a device in that form-factor... does not mean they will also want to do so. They're able to offer the updated iPad2 for 399, at micro-center and other places you can pick up an iPad 2 Wifi for 359 which is far better value than a $199 Kindle Fire..

 

Next year you'll be able to buy the iPad 2 for $199, iPad (3rd gen) for $399, and iPad 4th gen for $499. Effectively using the manufacturing strategy without wasting additional machining materials to create a different form-factor device at 7"/7.85"

 

That's all I've got so far.

post #21 of 121
Quote:
Originally Posted by supremedesigner View Post

My theory is ... Apple is doing their best to find the mole/leak coming from their high profile meetings. 

For example ... Tim Cook privately setup `Meeting One` for 20 people. Cook mentioned "iPad Mini" to 'em. Tim Cook also setup `Meeting Two` for 20 more different people. He mentioned "iPad Midget" to 'em.

So whoever leaked "iPad Midget" coming from his profile meeting then he knows that Meeting Two is responsible, not the other. He will hammer 'em down till the last one who was the responsible for it.

Hope this make sense.

 

What you are describing is called a "canary trap".

post #22 of 121
Quote:
Originally Posted by fecklesstechguy View Post

So instead of a 7" iPad, Apple brings out the 7" iPod Touch Pro (64GB), drops the price on regular iPod Touch to $99 (16GB) $199 (32GB).

 

It could happen.

 

It could.

 

Makes as much sense as the rumor, maybe a tad more. 

Better yet, they get rid of iPod classic and iPod shuffle, drop price of iPod nano down to $49/$79, change name of iPod touch to iPod, and adopt pricing of $129/$199/$299, with the screen size perhaps increased to differentiate it from iPhone. Whether or not there's room for the intermediate screen size is conjecture. I think 3.5" and 10" are fine, but there seems to be a lot of folks who 1-3 more SKUs.

post #23 of 121

I didn't say I was certain.  I just said it suggested that to my weird little mind.

post #24 of 121
Quote:
Originally Posted by Slang4Art View Post
Better yet, they get rid of iPod classic and iPod shuffle, drop price of iPod nano down to $49/$79, change name of iPod touch to iPod, and adopt pricing of $129/$199/$299, with the screen size perhaps increased to differentiate it from iPhone. Whether or not there's room for the intermediate screen size is conjecture. I think 3.5" and 10" are fine, but there seems to be a lot of folks who 1-3 more SKUs.

 

There's no evidence to suggest the shuffle is selling poorly. And I personally assumed they would discontinue the classic three years ago, and now look where we are.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #25 of 121
Quote:
Originally Posted by jinglesthula View Post

I heard the Kindle Fire was mostly bought by people to give away as gifts (hence the dropoff in sales after the holidays).

 

A local radio show host that got one for Christmas likened the Fire to fruitcakes:  you buy them only for other people, but no one wants to buy one for themselves. lol.gif

 

I appreciate your sense of ignorance or is it just happens to be your lack of knowledge?
 

post #26 of 121
Quote:
Originally Posted by MDCragg View Post

 

What you are describing is called a "canary trap".

 

Dr. Jack Ryan?

 

Sir (honorary) Jack Ryan?

 

Sir Dr. President Jack Ryan?

 

Seriously, IF Apple does this, it's a gateway drug into the Apple computing ecosystem.  Take the RED pill, people.

post #27 of 121

 

 

This suggests rather strongly to me that the whole event will be about the (incredibly popular and already much copied) iPod nano form factor. 

Or simply the shape of the App icons.  The think the event will be all about new apps for iOS and OSX platforms. They are way overdue for updates which utilized iCloud fully for syncing.

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post #28 of 121
Quote:
Originally Posted by skyzlmt View Post

An reason for this could be...

Not every product a manufacturer makes is expected to bring in the same profit margins.

Could be as simple as expanding their markets, or locking more people in to their platform so that when it comes time to upgrade... they stay with the manufacturer.

 

Similarly... While GM would love to sell everyone an expensive and profit ladened Corvette or Cadillac...  but many can only afford a Chevy Sonic.  And when that Chevy Sonic owner gets promoted and more cash down the road, hopefully they go bigger with Chevy.

 

The difference with AAPL is, will the markets understand a lower overall margin trade-off for the benefit of more sales and future growth opps?

Interesting fact about that is that GM came very close to dropping the Corvette in the 50's because of low sales (and the fact that the originals really were crap... although nice looking crap.)

One engineer apparently was able to make the case that having the Corvette in the line-up added panache to the whole line and would (and did) drive downmarket sales.

So Apple may very well introduce a 'beginners' tablet, but not for the same reason that GM kept the Vette.

post #29 of 121

ha ha.. race to the bottom. right, Apple will be all over this approach.

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post #30 of 121
Quote:
Originally Posted by Tallest Skil View Post

 

There's no evidence to suggest the shuffle is selling poorly. And I personally assumed they would discontinue the classic three years ago, and now look where we are.

Perhaps it isn't. I sort of think the iPod shuffle is there simply to push people up the food chain, so to speak, but I could be wrong. I am not trying to guess when iPod classic will be discontinued, but eventually it will. I've been on the same bandwagon as you, harping on that it's time for the iPod classic to die. Thing is, iCloud didn't exist 3 years ago.

 

I think the bigger consideration though is that when it does go away, we can simply go back to iPod, dropping the silly monikers. I think that the shuffle's life is shortened by the fact that it's not any smaller than iPod nano, so even if it was selling decently, why not just sell more iPod nanos and maybe even get them to try out a few nano Apps while they're at it?

post #31 of 121
If we consider that Apple is now selling the 10" iPad 2 for $399, the idea of selling a 7.85" model for, say, $299, isn't such a stretch. The question isn't whether they could do it, but whether they want to do it.

I've got no doubt they're working on a number of sizes of tablet in their labs. Why not? Even if they have no interest at the time in producing them, they would learn a lot about the ergonomics and usefulness of such devices.

At some point, they may decide that it's worth while.

If they do this, and they do it at the time they do the new iPhone, something I'm not so certain they would do, it has some sense to it as well. They might want to use the new SoC the new phone will use. Releasing them at the same time might make sense from that perspective.

If they use the current SoC, which may prove a good idea, especially as we know they are using a new 32nm process version in some iPad 2‘s to good effect, that would also be cheaper than a new one, as the design has been used and vetted, for less R&D costs.

According to Anandtech, the battery life is much better, so they could use a smaller battery, resulting in lower cost there as well.

I wouldn't dismiss this out of hand, though the $200 price does seem too low.

But with Apple, who ever really knows?
post #32 of 121
The new, seven-inch iPad will only be available in black.

There will also be a three inch Asian model.

Don't let your ladies buy one.

;-)
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post #33 of 121

I already bought a sub 250$ 7" iPad in the Galaxy Tab 2 7" and it came with a universal remote app that also works with IR devices natively. It's all I've ever wanted out of the iPad, and it's something the iPad will never have. Apple can kiss it. 

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post #34 of 121

Apple does this, and they will basically massacre everyone else, as well as prevent anyone from gaining traction in the tablet space for the next several years. 

 

I have no doubt they can release an iPad at this size and pricepoint while keep the quality and user experience high. I approve. 

post #35 of 121
Quote:
Originally Posted by micahcbrown View Post

In what world would it cost $250? An iPod Touch start at $199 and goes up from there. It's not going to happen because the cost of parts would prohibit Apple from making any kind of profit off a $250 device.

 

Use brains, not drug induced rumors.

 

Logical.

 

But no need to punctuate your logic with a qualifier like "drug-induced". Let's play nice.

post #36 of 121
Quote:
Originally Posted by Gazoobee View Post

 

I used to think the same and mostly still do, but recently I've begun to think that there are other form factors of iOS on the horizon.  

 

consider this for example: 

 

wwdc2012-june-11-15.jpg

 

 

This suggests rather strongly to me that the whole event will be about the (incredibly popular and already much copied) iPod nano form factor.  If Apple is beginning to see iOS as a sort of workhorse OS that can exist in multiple form factors, (and the evidence is that they do), then why not a mini tablet form factor as well? 

 

Not sure I see the Nano connection, but I definitely see this expanding to other form factors.  I don't see the room in the current pricing scheme for a mini iPad.  Only if the Nano becomes the new Touch, and the Touch gets scaled up to the 7-inch range.  Otherwise, a 7-inch iPad really only serves to satisfy a small but loud group of people who just want the form factor.

 

Quote:

I'm still not sure we will see a smaller iPad this year , but there will definitely be more shapes and sizes of iOS devices in the future.  

 

I can agree with this.

 

Quote:

There is also the possibility of dedicated devices.  What if they release a 7" tablet but instead of being a mini iPad it's a dedicated device for writers like a digital steno pad with a built in digitiser for pen input?  The Galaxy note, despite the drubbing it has received in the press has some very ardent fans already.  

 

Seems un-Apple-like to me.  Even more so with Tim Cook as CEO.  That's pretty niche.  Steve Jobs had pet projects, but I don't know about Tim Cook. 

 

Quote:

If and when they get around to integrating stylus input into iOS devices, I think it's a rather obvious move to go bigger as well as smaller.  As an artist myself, I would kill for an 18 or 20 inch iPad that allowed for using a proper stylus.  Such a device would rule the market in it's category and be better than anything Wacom ever envisioned in their wildest dreams.  

 

 I, too, would kill for such a device.

post #37 of 121
Quote:
Originally Posted by Orlando View Post

Doesn't Amazon make a loss on the Fire and this is with cheaper/slower components than other tablets. I could see Apple making a 7" tablet (I wouldn't mind one) but it won't be this cheap. Minimum price would likely be $300

 

  Can you pull any other numbers out of your ass while you're at it? I'd love to know what the GNP of ecuador will be in 2015

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post #38 of 121
Quote:
Originally Posted by jeffreytgilbert View Post

I already bought a sub 250$ 7" iPad in the Galaxy Tab 2 7" and it came with a universal remote app that also works with IR devices natively. It's all I've ever wanted out of the iPad, and it's something the iPad will never have. Apple can kiss it. 

 

Apple can 'kiss it' because they didn't design their entire entire tablet around you, who has extremely niche uses and requirements. Seems it worked out fine for them. How's that galaxy tab doing? Sales have been pretty fucking horrible, so apparently not that many people care about that IR functionality, and it seems people use the iPad for a few more things beyond a damn TV remote control, which is basically what you want. So no, you can kiss it, and have some damn perspective instead of trolling the company for making something noone wants except you. 

post #39 of 121

In re: the Chevy vs Corvette vs Cadillac proposition...  When I worked at IBM, I kidded a fellow consultant that "he was wasting his time with the Chevrolet DIvision of GM -- he should aspire to the Cadillac Division".   He 'splained to me that while Caddy had the prestige,  Chevy moved the iron and brought in the revenue/profits that supported all the other divisions.  1-5-3-6-2-4

 

As to different sizes/prices of tablets and other tablet-like smart devices...  Sooner or later we will see devices around $200 that will satisfy some [as yet] unmet demands... things like,

-- universal remotes

-- intercom/security monitoring

-- home control

-- personal TVs

-- low cost post-pc computer alternative for low purchasing power economies like India

-- fulfill the promise of OLPC for emerging countries

 

I think we're pretty close to seeing this happen...

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post #40 of 121
At those price points I suspect it isn't an iPad at all, but a high end ebook reader
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