Apple's smaller iPad forecast to become 'competition's worst nightmare'

Posted:
in iPad edited January 2014
Tablet makers have failed to compete with Apple in the $400-and-up market segment, and a new, smaller iPad priced below $300 is only expected to make matters worse for the competition.

Analyst Shaw Wu with Sterne Agee said he believes Apple's so-called "iPad mini" will prove to be "the competition's worst nightmare." He noted that competitors are already struggling to compete against the $399 iPad 2 and $499 iPad, and Apple hitting an even lower price point will only expand its share of the tablet market.

The main question, Wu said, is whether Apple will "go for the kill" against competitors and accept lower margins to reach the $199 price point of its competitors, such as the Google Nexus 7 and Amazon Kindle Fire HD.

Wu doesn't believe Apple needs to hit the $199 price point and match Google and Amazon. In fact, he thinks Apple could sell its smaller iPad for around $350 and it would still be a success.

He noted that Apple already has a product at the $199 price point with its entry-level iPod touch, while the iPad 2 is available for $399. He thinks an iPad mini for either $299 or $349 makes the most sense for the company.

Rendering Front/Back

"iPad mini" rendering by Martin Hajek.


This week, Apple sent out invitations for an event next Tuesday in San Jose, Calif., where it has promised it will show "a little more." The company is widely expected to unveil a new 7.85-inch iPad it will sell for the holiday shopping season, as well as new Mac hardware headlined by a 13-inch MacBook Pro with Retina display.

The iPad mini is expected to feature a smaller bezel than the full-size iPad, and could run a screen resolution of 1,024-by-768 pixels that would allow it to run native iPad 2 applications without any modifications. It is also expected to have forward and rear facing cameras, as well as the new smaller Lightning connector found on the iPhone 5 and latest iPods.
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Comments

  • Reply 1 of 232
    MacProMacPro Posts: 18,352member
    I hope it will at least start at lower than $350. $295 might by a nice price for an entry model.
  • Reply 2 of 232
    jason98jason98 Posts: 763member
    Well $99 nexus is coming with perhaps comparable specs. Apple has to offer a $200 low margin option.
  • Reply 3 of 232
    I just hope the base storage model is 16GBs. Anything less than that is ridiculous, unless it will be priced at $199 (though the 8GB Nexus 7 model doesn't sell as well as the 16GB model).
  • Reply 4 of 232
    But the apple map app will still suck!
  • Reply 5 of 232


    This will be fascinating to watch. The Nexus 7 is selling reasonably well and aggressively priced. The Google ecosystem is not bad. Arguably, there are not nearly as many tablet-specific apps for Android.


     


    But Apple doesn't have a history of saying "here's a 7.85" tablet" and simply letting the customer choose. Their track record suggests that the iPad Air will come with a compelling appeal. Will this be the thinness alone? Can't wait to find out.

     

  • Reply 6 of 232

    Quote:

    Originally Posted by Rodent View Post



    But the apple map app will still suck!




    And you are still just a rat.

  • Reply 7 of 232
    timuscatimusca Posts: 120member

    Quote:

    Originally Posted by jason98 View Post



    Well $99 nexus is coming with perhaps comparable specs. Apple has to offer a $200 low margin option.


    Specs aren't everything. A lower powered iPad runs at the same or better than a higher speced Android tablet. The A6 and iOS are so much more efficient. Plus, anyone who owns an iPhone likely wants to stay within the iOS ecosystem. They instantly own a bunch of apps for it just because they bought them on their iPhone.

  • Reply 8 of 232
    timuscatimusca Posts: 120member

    Quote:

    Originally Posted by digitalclips View Post



    I hope it will at least start at lower than $350. $295 might by a nice price for an entry model.


    Well, rumors are that the intro price is $250. If that's true, it'll be a huge success.

  • Reply 9 of 232


    The rendering looks weird. From what POV would the unit with its back facing the camera be noticeably shorter than the front-facing unit?

  • Reply 10 of 232

    Quote:

    Originally Posted by TimUSCA View Post


    Specs aren't everything. A lower powered iPad runs at the same or better than a higher speced Android tablet. The A6 and iOS are so much more efficient. Plus, anyone who owns an iPhone likely wants to stay within the iOS ecosystem. They instantly own a bunch of apps for it just because they bought them on their iPhone.



     


    That's exactly my argument. I had an iPad, but I found it difficult to find a good use for it alongside my 11" Air except reading, which it was just too hefty for. I didn't bother with a 7" Android tablet as I didn't want to have to rebuy all the iPad apps I had. The iPad Air would fit perfectly what I want out of a tablet - slots between my laptop and phone, and runs everything I already own. Heck, I don't even care if it's cheap, I'll be getting the cellular model anyway (assuming it exists) as my carrier lets you add a tablet to your existing data plan for free.

  • Reply 11 of 232
    nhtnht Posts: 4,494member

    Quote:

    Originally Posted by nonimus View Post



    I just hope the base storage model is 16GBs. Anything less than that is ridiculous, unless it will be priced at $199 (though the 8GB Nexus 7 model doesn't sell as well as the 16GB model).


     


    There's the strategy right there if the base model is 8GB.  They don't expect the 8GB to sell well and instead get the upsell to 16GB.

  • Reply 12 of 232
    bigmikebigmike Posts: 253member
    Agreed on the lower price. I think it should be no more than $249. If Apple wants to crush the competition, then it should be $199.
  • Reply 13 of 232

    Quote:

    Originally Posted by jason98 View Post



    Well $99 nexus is coming with perhaps comparable specs. Apple has to offer a $200 low margin option.


     


    Yes... because all of that other "overpriced" stuff that Apple makes is selling so poorly...

  • Reply 14 of 232
    mauszmausz Posts: 243member

    Quote:

    Originally Posted by TimUSCA View Post


    Specs aren't everything. A lower powered iPad runs at the same or better than a higher speced Android tablet. The A6 and iOS are so much more efficient. Plus, anyone who owns an iPhone likely wants to stay within the iOS ecosystem. They instantly own a bunch of apps for it just because they bought them on their iPhone.



     


    Where is confirmation it will have a A6 SoC ? I would put my money on it getting a A5 (32nm version like in the new ipad 2). That SoC is beginning to seriously show it's age as can be seen from the benchmarks when the iPhone5 was introduced.

  • Reply 15 of 232
    solipsismxsolipsismx Posts: 19,566member
    jason98 wrote: »
    Well $99 nexus is coming with perhaps comparable specs. Apple has to offer a $200 low margin option.

    A 7.85" 4:3 display has about 40% more area than a 7" 16:9 display. Sure, you can compare the two specs in the same way you can compare the size and aspect ratio of an HDTV but they aren't the same. This means Apple can charge more for the larger device that comes at or below the same weight and thickness.

    harbinger wrote: »
    This will be fascinating to watch. The Nexus 7 is selling reasonably well and aggressively priced. The Google ecosystem is not bad. Arguably, there are not nearly as many tablet-specific apps for Android.

    Reasonably well for the tablet market or reasonably well for an Andriod-based tablet? I'm guessing a $249-$299 based unit iPad Air/Mini/iBook with 16GB storage, 1024x768 IPS in-cell display with essentially the SoC of the new iPod Touch would outsell it by a large margin and hurt its future sales.
  • Reply 16 of 232
    bigmikebigmike Posts: 253member

    Quote:

    Originally Posted by Harbinger View Post


    The rendering looks weird. From what POV would the unit with its back facing the camera be noticeably shorter than the front-facing unit?



     


    It's an unofficial rendering.


     


    I think the artist meant for the back-facing unit to be a bit farther but the shadow from the front makes it look too close, making it seem like the rear unit is shorter. I look at product photography/renderings all day and notice these things too. But, again, it's an unofficial rendering and most people don't give a shit.

  • Reply 17 of 232
    solipsismxsolipsismx Posts: 19,566member
    mausz wrote: »
    Where is confirmation it will have a A6 SoC ? I would put my money on it getting a A5 (32nm version like in the new ipad 2). That SoC is beginning to seriously show it's age as can be seen from the benchmarks when the iPhone5 was introduced.

    They might use the A6 in this device but economies of scale can only so so much. This is why we see the A5/32nm in the new iPod Touch. Based on that I'm betting that it will also have the A5 in the Touch.
  • Reply 18 of 232


    Be interesting to see what price they go for.  I hope it's $299, that'll be low enough to vacuum away a lot of sales, cause its an iPad.  They'll sell a ton of them.


     


    I'm guessing the limiting factor regarding sales numbers for the holiday will be the number produced.

  • Reply 19 of 232
    mauszmausz Posts: 243member

    Quote:

    Originally Posted by SolipsismX View Post





    1) I believe that is 32nm. 28 is for the new Qualcomm base bands. There is no 20nm. Next year Intel should have 22nm and after that they'll have 14nm. I know of nothing with 20nm shipping today.

    2) They might use the A6 in this device but economies of scale can only so so much. This is why we see the A5/32nm in the new iPod Touch. Based on that I'm betting that it will also have the A5 in the Touch.


     re 1, you're right, I editted it right away, even before I read your comment. I was being a bit too optimistic ;)

  • Reply 20 of 232
    philipmphilipm Posts: 239member

    Quote:

    Originally Posted by Rodent View Post



    But the apple map app will still suck!


     


    Yes, suck profits from the competition.


     


    When does Apple get big enough to be subject to anti-trust? Maybe they will let Microsoft live just so they can dodge that bullet.

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