'Minor issues' could result in June launch for $999 Apple tablet - report
While Apple's tablet is still expected to see a formal introduction at a media event next week, issues with battery life and durability could result in a June launch, an analyst said Tuesday.
In a new note to investors, Shaw Wu with Kaufman Bros. said checks with supply chain sources indicate the launch pattern for the tablet could follow that of the original iPhone in 2007, with a January unveiling and final product shipping to consumers six months later. He said that the June launch could be due to "minor issues" with more work needed on battery life and durability.
However, he said, checks also indicate that a tablet-type device will be introduced next week, at a Jan. 27 event, where the company has advertised it plans to show off its "latest creation." Wu described the product as being like a "super" iPod touch.
"This tablet product has been described to us as a hybrid between an iPhone/ipod touch and a mac but in terms of software and components, it appears closer to the former, meaning it is most likely ARM based," he wrote. "From our understanding, it is not intended to replace a Mac but be somewhat of a 'super' iPod touch where video, gaming, Web browsing, e-books and the ability to run multiple apps would be enhanced with the much larger screen."
The analyst's claims of a June launch contradict with The Wall Street Journal, which reported earlier this month that the hardware is expected to ship in March. The device is expected to have a screen sized between 10 inches and 11 inches.
Wu also expects the device to cost around $999, citing a $100 incremental cost for a large touchscreen, according to sources in the supply chain. In addition, additional costs over the iPhone and iPod touch would come in the form of semiconductors, glass, sensors and substrates.
That estimate comes in much higher than competing analyst Gene Munster, of Piper Jaffray, who has predicted a $600 average selling price. In general, analysts expect the device to cost less than $1,000.
Wu said he believes that Wi-Fi would be the "most likely option" for network access, as opposed to 3G, so as to "not further clog already strained 3G networks." But, he said, there is still the potential for carriers to offer subsidies and lower the price point of the device for end users. He said Wi-Fi is the best option to offer broad and inexpensive high-speed Internet access.
Kaufman Bros. has predicted the "iSlate," as Wu referred to it, to sell a million units per quarter. Supply chain sources indicated that Apple hopes to build 5 million units in the first year of production. The company has reiterated its price target of $253 for AAPL stock.
In a new note to investors, Shaw Wu with Kaufman Bros. said checks with supply chain sources indicate the launch pattern for the tablet could follow that of the original iPhone in 2007, with a January unveiling and final product shipping to consumers six months later. He said that the June launch could be due to "minor issues" with more work needed on battery life and durability.
However, he said, checks also indicate that a tablet-type device will be introduced next week, at a Jan. 27 event, where the company has advertised it plans to show off its "latest creation." Wu described the product as being like a "super" iPod touch.
"This tablet product has been described to us as a hybrid between an iPhone/ipod touch and a mac but in terms of software and components, it appears closer to the former, meaning it is most likely ARM based," he wrote. "From our understanding, it is not intended to replace a Mac but be somewhat of a 'super' iPod touch where video, gaming, Web browsing, e-books and the ability to run multiple apps would be enhanced with the much larger screen."
The analyst's claims of a June launch contradict with The Wall Street Journal, which reported earlier this month that the hardware is expected to ship in March. The device is expected to have a screen sized between 10 inches and 11 inches.
Wu also expects the device to cost around $999, citing a $100 incremental cost for a large touchscreen, according to sources in the supply chain. In addition, additional costs over the iPhone and iPod touch would come in the form of semiconductors, glass, sensors and substrates.
That estimate comes in much higher than competing analyst Gene Munster, of Piper Jaffray, who has predicted a $600 average selling price. In general, analysts expect the device to cost less than $1,000.
Wu said he believes that Wi-Fi would be the "most likely option" for network access, as opposed to 3G, so as to "not further clog already strained 3G networks." But, he said, there is still the potential for carriers to offer subsidies and lower the price point of the device for end users. He said Wi-Fi is the best option to offer broad and inexpensive high-speed Internet access.
Kaufman Bros. has predicted the "iSlate," as Wu referred to it, to sell a million units per quarter. Supply chain sources indicated that Apple hopes to build 5 million units in the first year of production. The company has reiterated its price target of $253 for AAPL stock.
Comments
edit: dammit, too quick.
I'm not buying a tablet for $999.00, sorry, but I will wait till the price drops to half in two years.
Wu is "Wu-seless", he has to be one of the worst analysts covering apple, he has a terrible track record, so this is good for us.
Secondly, I don't think apple will have a problem selling the merchandise you pass on because of price, I don't think there will be ONE tablet sitting around because you didn't buy it.
Sorry that sounds snarky and isn't meant to be, lol.
How the heck did those guys keep this a secret until now?
Wu is "Wu-seless", he has to be one of the worst analysts covering apple, he has a terrible track record, so this is good for us.
Secondly, I don't think apple will have a problem selling the merchandise you pass on because of price, I don't think there will be ONE tablet sitting around because you didn't buy it.
Sorry that sounds snarky and isn't meant to be, lol.
The problem with that statement is that you were talking to an Apple fan making that statement. If these kind of people aren't interested, who will be? In the middle of a recession people don't usually splurge $1000 on a "super iPod touch".
You can always justify a phone and a computer however. This thing could conceivably be just a toy which many cannot justify.
I'm not buying a tablet for $999.00, sorry, but I will wait till the price drops to half in two years.
£599 (64GB) up to £799 (128 SSD). Given we always get ripped off in the UK due to a slight malfunctioning of the currency converter, i reckon it'll come to you from $899.
There Wu go my 2pence or 2c worth.
Are you folks trying to tell me that Apple is going to release a touchscreen tablet-style computer? Really?
How the heck did those guys keep this a secret until now?
Very nice!
"Checks indicate that a tablet-type device will be introduced next week, at a Jan. 27 event."
Wu needed his supply chain source to tell him that? It's front page news, moron!
This tablet product has been described to us as a hybrid between an iPhone/ipod touch and a mac but in terms of software and components, it appears closer to the former, meaning it is most likely ARM based," he wrote. "From our understanding, it is not intended to replace a Mac but be somewhat of a 'super' iPod touch where video, gaming, Web browsing, e-books and the ability to run multiple apps would be enhanced with the much larger screen."
Nothing like covering all your bases, Wu. Even a broken clock is right twice a day! Is Wu's "supply chain" source privy to AAPL's subscription model which will prove to be the Slate's raison de tre? I think not.
I have know doubt that it will rock the world.
All these damn analysts have "sources".
And any source from the far east have damn near zero credibility.
Can't be hard to become an analyst.
I can talk out my ass.
Yes I can!
Probably some form of ARM. Could be a PA Semi designed part though not sure if Apple would specifically say that. They do not get too technical on whats inside, just basics.
His predictions are worth betting AGAINST.
Bite your tongue: not the $253 forecast!
Shaw Wu has the worst record of any analyst in the industry. His predictions are worth betting AGAINST.
His short hedge fund friends probably asked him to say something negative. And, he did. Hey, the guy has got to make a living.
Secondly, I don't think apple will have a problem selling the merchandise you pass on because of price
I agree. The fanbois will be lined up in the predawn hours to get one, price be damned.
Wu is "Wu-seless", he has to be one of the worst analysts covering apple, he has a terrible track record, so this is good for us.
Secondly, I don't think apple will have a problem selling the merchandise you pass on because of price, I don't think there will be ONE tablet sitting around because you didn't buy it.
Sorry that sounds snarky and isn't meant to be, lol.
can't wait...
$999 is the same price as a MacBook. A $999 iSlate seems very poor value in comparison.
How can you judge the value of something that doesn't exist? IMHO Apple isn't going to release a new computing platform that was so low in value that they couldn't sell it for a 100% mark-up during the initial hype. So will parts really be cheap enough to do that below the $1000 price point? In the past Apple has generally erred on the side of too expensive then dropped the prices if necessary.
On the other hand... maybe Apple should just auction off each and every MacSlate for the first quarter and see what the market values it at.
I'm not buying a tablet for $999.00, sorry, but I will wait till the price drops to half in two years.
Unless it is significantly less than a MacBook I can't buy it.