Smaller iPad seen boosting Apple's sales to schools, gamers

Posted:
in iPad edited January 2014
A smaller, more affordable iPad could increase Apple's tablet sales not only to schools and students, but also to people who play games on mobile devices, a new analysis concludes.

Ben A. Reitzes with Barclays Equity Research said his recent research continues to lead him to believe that Apple is planning to expand the iPad lineup this fall. Various rumors have repeatedly suggested that Apple is exploring a smaller device with a 7.85-inch display that would run at 1,024 by 768 pixels, a resolution identical to the first-generation iPad and iPad 2.

"We do not feel that a smaller, lower priced tablet will dilute the quality of the iPad brand and iOS ecosystem either, despite prior comments by the company," Reitzes wrote in a note to investors on Tuesday.

Instead, he believes that a smaller and less expensive iPad would help Apple promote the use of its touchscreen tablet for education and e-books. A smaller iPad would help expand the tablet market, he said, allowing it to reach as high as 350 million sales in 2015.

In addition, Reitzes also believes that a smaller iPad would increase sales among gamers. He expects that iOS gaming will continue to become a bigger platform for Apple in the future.

The analyst acknowledged that a smaller iPad would cannibalize some sales of the existing 9.7-inch model, but he believes it would be worth it in exchange for increasing Apple's total addressable market, and also fending off lower priced competitors.

iPad


Reitzes noted that the price drop of the 16-gigabyte iPad 2 to $399 in March has gone a long way in combating Amazon's $199 Kindle Fire. Earlier this month, IDC revealed that shipments of the Kindle Fire plummeted from a 16.8 percent market share in the fourth quarter of 2011 to just 4 percent in the first quarter of 2012.

But Amazon is also expected to expand the Kindle Fire lineup this year with a new model larger than the current 7-inch variety, which could motivate Apple to expand the iPad lineup accordingly.

Reitzes also said on Tuesday that he expects Apple will make its Mac platform more affordable with a new $800 MacBook Air, $200 less than the current low-end model. Rumors of a $799 MacBook Air were first reported last week.
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Comments

  • Reply 1 of 86
    tallest skiltallest skil Posts: 43,399member


    tumblr_m3b3nfCNs81r5zyzpo6_250.gif


     


    I'm getting tired of these 2008 reruns.

  • Reply 2 of 86
    tzeshantzeshan Posts: 2,045member


    Why not just upgrade iPod Touch to 5"? Wait!  The iPod Touch is selling over $200.  How could Apple sell a 7" iPad for much lower than $300? 

     

  • Reply 3 of 86
    zarenzaren Posts: 49member


    I'm sick of hearing Ben's wishes and dreams for new product being trotted out as discussion of an upcoming product. The other analyst with the stiffy for an Apple TV as well. Tired of wild-eyed speculation that people read as analysis of future product. I'm getting really tired of sites that give these market fixers page space as well.

  • Reply 4 of 86
    charlitunacharlituna Posts: 7,215member

    Quote:

    Originally Posted by Tallest Skil View Post


    tumblr_m3b3nfCNs81r5zyzpo6_250.gif


     


    I'm getting tired of these 2008 reruns.


     


    I will see your Whose line and raise you an


     


     image


  • Reply 5 of 86
    timgriff84timgriff84 Posts: 912member
    Still could go either way. I think there's probably a market for one as the iPad is a bit of a beast to take out with you.

    But it also depends what they do with the iPhone and iPod touch. If they both stay at the current screen size, then it makes even more sense to have a 7 inch device. If they up then to 4 inch, then the need drops quite a bit.
  • Reply 6 of 86


    PLEASE!  NO!  MORE!

  • Reply 7 of 86
    charlitunacharlituna Posts: 7,215member

    Quote:

    Originally Posted by AppleInsider View Post





    Instead, he believes that a smaller and less expensive iPad would help Apple promote the use of its touchscreen tablet for education and e-books


     


    This why oh why did Apple go to all that fuss to make iBooks Author and get those textbook companies in on a game that is designed to work with the larger screen. Why not wait and release that stuff with this new smaller iPad


     


    In addition, Reitzes also believes that a smaller iPad would increase sales among gamers.


     


    so would more games between designed to allow you to use your iPhone as a controller, or a 3rd party 'nintendo' style bluetooth control. And then there's Airplay tricks like Real Racing uses. or go ultimate and have a game that does the whole Airplay AND allows you to use another controller. imagine something like Real Racing like that. You use your iPhone as a controller for a game running off your iPad where it airplays the first person view to the tv and on the iPad you get your track map. 


     


     




     



    Reitzes noted that the price drop of the 16-gigabyte iPad 2 to $399 in March has gone a long way in combating Amazon's $199 Kindle Fire.


    Perhaps a little but not as much as the new even better iPad or simply the fact that the Fire sucks in many folks opinion and Amazon pulled stunts like no parental controls or even requiring your password to buy stuff. 

  • Reply 8 of 86
    charlitunacharlituna Posts: 7,215member

    Quote:

    Originally Posted by zaren View Post


    I'm sick of hearing Ben's wishes and dreams for new product being trotted out as discussion of an upcoming product. 



     


    bloggers and commenters are just as bad. They trot out their wishes as "must have" features the lack of which makes the product crap and the company doomed

  • Reply 9 of 86
    johndoe98johndoe98 Posts: 278member
    So in June Apple will update almost everything to Retina, and in the Fall they will introduce new non-retina devices? I just don't see this happening. Maybe if the resolution was quadrupled this rumor would be more plausible, but even then...
  • Reply 10 of 86
    hmurchisonhmurchison Posts: 12,291member

    Quote:

    Originally Posted by tzeshan View Post


    Why not just upgrade iPod Touch to 5"? Wait!  The iPod Touch is selling over $200.  How could Apple sell a 7" iPad for much lower than $300? 

     



    Smaller devices are more difficult to engineer.    


     


     


    An iPhone 4S is $649 for 16GB  an iPad with larger hirez screen, larger battery and LTE cellular is $629.  In electronics making something larger is the easy 


    task.  Making it small and functional is considerably more difficult. 

  • Reply 11 of 86
    iluomoiluomo Posts: 25member


    More more more!  Until it comes out, then I'll buy one.  I want it.

  • Reply 12 of 86
    bikertwinbikertwin Posts: 564member
    What's wrong with a 10" iPad that's meant for consumption and production (i.e., a laptop replacement for many), and a 7" iPad that's aimed more at consumption (books, magazines, video, iTunes U, gaming)?

    So when's the 13" iPad coming? No one talks about a larger device. Could it be made light enough? Android keeps making their phones larger and larger, why not tablets? Or would that cut into laptop sales too much?
  • Reply 13 of 86


    Finally, someone who shares the same opinion as I do on a smaller iPad.



    iPad Mini - $299


    • 8GB 


    • WiFi only


    • Perfect for iOS gaming and as an e-reader for textbooks


    • Use as a controller or input device for upcoming Apple tv app store or possible iTV


    • Gives users a choice of devices at every price point


    • Brings users into Apple's ecosystem (iCloud, iTunes, App Store) where they will be much more likely to upgrade to future Apple products


     


    In short, I really can't see a downside except for a small amount of cannibalization of the full-sized iPad. But, Apple has the profit margins to do this and shut the door on all rival tablet makers, especially the Kindle Fire.


     


    And I don't want to hear about the touch targets being too small on such a device. If you can use an iPhone or iPod Touch, this would be even easier. As it is, I can never hit the autocorrect spelling and get it to register. Kid's fingers are smaller and they would be a large portion of the market for such a device.


     


    Then, Apple can slightly increase the iPhone display to 4" along with the iPod Touch for a nice refresh this Fall.

  • Reply 14 of 86
    gqbgqb Posts: 1,934member

    Quote:

    Originally Posted by tzeshan View Post


    Why not just upgrade iPod Touch to 5"? Wait!  The iPod Touch is selling over $200.  How could Apple sell a 7" iPad for much lower than $300? 

     





    Oh my god!!!


    Things change? Please say it isn't so! Everything MUST stay the way it was in the past.

  • Reply 15 of 86
    gazoobeegazoobee Posts: 3,754member

    Quote:

    Originally Posted by tzeshan View Post


    Why not just upgrade iPod Touch to 5"? Wait!  The iPod Touch is selling over $200.  How could Apple sell a 7" iPad for much lower than $300? 

     



     


    That's the thing.  Even if this guy is right, it's not an iPad mini he's talking about but an iPod touch.  Even if it happens, and even if the price can be lowered, it would still be an iPod with a slightly bigger screen and a better price point, not an iPad mini.  


     


    All the uses that iPad is good for, require the bigger screen.  

  • Reply 16 of 86

    Quote:

    Originally Posted by charlituna View Post


     


    bloggers and commenters are just as bad. They trot out their wishes as "must have" features the lack of which makes the product crap and the company doomed



     


    Yeah, but I don't get paid for my crappy analysis.  This donut is probably making bank.

  • Reply 17 of 86
    MacProMacPro Posts: 18,414member


    Maybe this is really going to be the next iPod Touch which just also happens to run iOS or a sub set of iOS rather than a 'smaller iPad' as such.

  • Reply 18 of 86


    From an owner of a 27" iMac i7, iPhone 4, new iPad 64GB WiFi, iPod Touch, and (3) iPod Shuffles.


     


    The other thing missing is multiple users on iOS devices

  • Reply 19 of 86
    venerablevenerable Posts: 108member

    Quote:

    Originally Posted by MacinScott View Post


    Finally, someone who shares the same opinion as I do on a smaller iPad.



    iPad Mini - $299


    • 8GB 


    • WiFi only


    • Perfect for iOS gaming and as an e-reader for textbooks


    • Use as a controller or input device for upcoming Apple tv app store or possible iTV


    • Gives users a choice of devices at every price point


    • Brings users into Apple's ecosystem (iCloud, iTunes, App Store) where they will be much more likely to upgrade to future Apple products


     


    In short, I really can't see a downside except for a small amount of cannibalization of the full-sized iPad. But, Apple has the profit margins to do this and shut the door on all rival tablet makers, especially the Kindle Fire.


     


    And I don't want to hear about the touch targets being too small on such a device. If you can use an iPhone or iPod Touch, this would be even easier. As it is, I can never hit the autocorrect spelling and get it to register. Kid's fingers are smaller and they would be a large portion of the market for such a device.


     


    Then, Apple can slightly increase the iPhone display to 4" along with the iPod Touch for a nice refresh this Fall.



     


    You mean the 2,000 other posters who say "I want a smaller iPad for $200" aren't enough?


     


    Still asinine.  It's a given that Apple could sell a functionally identical iPad in a smaller size for $200-$299.  Just like it's a given that a smaller, but similarly-featured Lexus GS-series priced at $10,000 would be a runaway best seller.


     


    The only issue is "does it make sense from a business standpoint?"  None of these "fantasy CEO"-players have given that a single thought.  It's all part of the "I want it"/"why shouldn't I have it?"/"choice is good" mantra.

  • Reply 20 of 86
    carmissimocarmissimo Posts: 837member

    Quote:

    Originally Posted by bikertwin View Post



    What's wrong with a 10" iPad that's meant for consumption and production (i.e., a laptop replacement for many), and a 7" iPad that's aimed more at consumption (books, magazines, video, iTunes U, gaming)?

    So when's the 13" iPad coming? No one talks about a larger device. Could it be made light enough? Android keeps making their phones larger and larger, why not tablets? Or would that cut into laptop sales too much?


     


    The problem is that a 7-inch screen is bad for consumption compared to a 10-inch device like the current iPad. The 10-incher is just adequate for watching video so if you go significantly smaller, watching video is far less enjoyable. Reading is better served by a larger screen. Playing games is better served by a larger screen. 


     


    There is only a few downsides to the bigger screen. It is too large to slip into an average-sized pocket and can get a little heavy to haul around for long stretches. Yet a seven-inch device (closer to eight inches as rumoured) would remain too large to slip into an average-sized pocket. Where you would bring along a 7-inch tablet, you certainly could take along the existing version of the iPad. We're not talking a gigantic device that is unusable as a portable computing solution. 


     


    There are two ways in which Apple can address the concerns regarding the current iPad form factor. One is to engineer out weight with successive generations. I really see that happening, especially as more light-weight screen technology comes along. The other is to make a larger Touch though not so much larger that it loses the convenience of being a true pocket computer. The thing is, it's one or the other. You don't make a larger Touch and bring out a 7-inch iPad. Far too much overlap, especially in terms of price. So you have to choose. A 5-inch Touch or a 7-inch iPad. The larger Touch makes far more sense especially since I could easily imagine situations in which such a Touch model would be suited to settings for which the current iPad isn't well-suited. With a 7-inch iPad, not so much. 


     


    As for Apple doing this to fend off competitors. What competitors? The competition was out of this one right from the start.

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