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

Posted:
in iPad edited January 2014
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.
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Comments

  • Reply 1 of 120


    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. image

  • Reply 2 of 120


    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.

  • Reply 3 of 120


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


     


    I don't think it will happen.

  • Reply 4 of 120


    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.

  • Reply 5 of 120
    tallest skiltallest skil Posts: 43,399member


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


     


    OH WAIT.

  • Reply 6 of 120
    skyzlmtskyzlmt Posts: 46member


    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?

  • Reply 7 of 120
    bullheadbullhead Posts: 493member


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

  • Reply 8 of 120
    gazoobeegazoobee Posts: 3,754member

    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

  • Reply 9 of 120
    tallest skiltallest skil Posts: 43,399member

    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.

  • Reply 10 of 120


    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. 

  • Reply 11 of 120
    gazoobeegazoobee Posts: 3,754member

    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.  

  • Reply 12 of 120
    orlandoorlando Posts: 601member


    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

  • Reply 13 of 120
    mr. memr. me Posts: 3,219member

    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. 

  • Reply 14 of 120
    carmissimocarmissimo Posts: 837member


    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. 

  • Reply 15 of 120
    realwarderrealwarder Posts: 136member
    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.
  • Reply 16 of 120
    bigmac2bigmac2 Posts: 637member


    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. 

  • Reply 17 of 120
    tallest skiltallest skil Posts: 43,399member

    Quote:

    Originally Posted by Gazoobee View Post

    wwdc2012-june-11-15.jpg


     


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



     


    163146

  • Reply 18 of 120


    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...

  • Reply 19 of 120


    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.

  • Reply 20 of 120
    mdcraggmdcragg Posts: 73member

    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".

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