Apple's 2014 iPads to sport Touch ID & TSMC-built A8 CPU, 12.9" iPad unlikely till 2015

Posted:
in iPad edited May 2014
Apple will reportedly introduce new iPad Airs and Retina iPad minis later this year that will feature the company's latest A8 mobile processor and new Touch ID sensor. Meanwhile, prices of older iPads are expected to inch downward while an effort to deliver a larger 12.9-inch entertainment tablet shapes up to drive growth next year.

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In a research note obtained by AppleInsider, well-connect analyst Ming-Chi Kuo of KGI said information gathered from his sources suggest Apple will use a combination of product refreshes and price adjustments to drive 'moderate growth' in its tablet segment through the end of the calendar year.

A so-called iPad Air 2 will reportedly launch a bit earlier this year -- likely late in the third quarter instead of early in the fourth -- and include a next-generation A8 mobile processor manufactured for Apple by TSMC, a Touch ID fingerprint sensor, and an 8MP rear-facing camera.

According to Kuo, who boasts a respectable track record of predicting Apple's future product introductions, the iPad mini with Retina display will also get an upgrade with an A8 and Touch ID sensor despite failing to sell in the volume the iPad maker had originally expected.

The analyst blames the slower than expected sales of the latest iPad mini with Retina on Apple having repeated the same mistake it made years ago with the full-sized iPad when it thickened the device in order to build in the higher-resolution display.

"This change proved unpopular among consumers," he wrote. "We think iPad mini with Retina display made the same mistake, explaining why it's not selling as well as the previous generation of iPad mini."

This year's iPad mini with Retina display will maintain the same form factor as the current model but initially ship in limited volumes, while the previous year's model may continue to be manufactured and sold at a reduced cost.

Separately, Apple is reportedly working on a 12.9" iPad to generate new growth momentum via a richer entertainment and productivity experience. However, the analyst said the product is unlikely to make its way to market until next year, as Apple is believed to working on new usability features to accompany the release.

"With the 12.9" iPad, we think Apple will come up with a new user interface that's more innovative and intuitive, so that input will be as efficient as a device with keyboard," Kuo said.

Overall, the analyst is forecasting the new iPads to deliver moderate or "flattish" year-over-year growth for Apple in 2014 to about 73.5 million units.
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Comments

  • Reply 1 of 49
    Personally I wouldn't consider this "breaking" news. Mostly because I expected it since it was included on the phone.

    I know several iPad 2 owners who are literally waiting for "Touch ID" to upgrade their iPad.
  • Reply 2 of 49
    nobodyynobodyy Posts: 377member
    I don't understand how the slower iPad mini with Retina sales can be compared to the slower sales of the iPad 3, especially considering it's not noticeably thicker and it's packed with the same internal components as the Air?

    Did that little extra thickness really play into it? I don't even notice it on my riPad mini.
  • Reply 3 of 49
    FIVE consecutive breaking articles based upon Ming''s words! This has to be a record!!
  • Reply 4 of 49
    benji888benji888 Posts: 133member
    enough with notifications for "breaking" rumors!!!

    I only want notifications when Apple releases a product... I.E. "Apple releases OS X 10.9.x" (public, NOT beta) or "Apple confirms new product announcement...."
  • Reply 5 of 49
    Quote:

    Originally Posted by benji888 View Post



    enough with notifications for "breaking" rumors!!!



    I only want notifications when Apple releases a product... I.E. "Apple releases OS X 10.9.x" (public, NOT beta) or "Apple confirms new product announcement...."



    So then stop coming here.

  • Reply 6 of 49
    irelandireland Posts: 17,743member

    Very interesting.

     

    I think Apple should GO-BIG this year on iPad by COMPLETELY KILLING all old models and releasing this year's models at a $100 reduction.

     

    Making the only two models of iPad available:

     

    iPad Air with A8 and Touch ID starting at $399 and iPad mini Retina with A8 and Touch ID starting at $299. That would drive sales big time and would make the iPad a way more appealing product in the marketplace. It would really simplify the whole iPad product lineup as well which would be a great thing for Apple and for potential Apple customers. Not to mention it'd give all new home and education iPad customers an amazing first time experience. It'd be a really aggressive move. This I'd love to see.

     

    Besides, most new iPad customers go for the 32 GB model and buy the Apple Smart Case so Apple would continue to profit well on the product. And Android tablets makers would have a heart attack.

  • Reply 7 of 49
    solipsismxsolipsismx Posts: 19,566member

    So then stop coming here.

    He has a point.

    AI now has 6 Breaking news articles for one analyst's prophecies. This is what we expect immediately following an Apple event with real products being introduced, but not for rumours and conjecture. At this point I have think Kuo is paying AI for these articles.


    1000
  • Reply 8 of 49
    cpsrocpsro Posts: 2,788member

    This news would be enough reason to not waste time having TSMC tool up for A7 production. To paraphrase Schiller, Samsung must really be feeling it now.

  • Reply 9 of 49
    solipsismxsolipsismx Posts: 19,566member
    ireland wrote: »
    Very interesting.

    I think Apple should GO-BIG this year on iPad by COMPLETELY KILLING all old models and releasing this year's models at a $100 reduction.

    Making the only two models of iPad would be:

    iPad Air with A8 and Touch ID starting at $399 and iPad mini with Retina with A8 and Touch ID starting at $299. That would drive sales big time and would make the iPad a way more appealing product over any Android counterpart. And it would really simplify the whole iPad product lineup as well which would be a great thing for Apple and for potential Apple customers. Not to mention It'd give all new home and education iPad customers an amazing experience. It'd be a really aggressive model. This I'd love to see.

    What motivation do they have for dropping the price when they already dominate the entire viable aspect of the tablet market? If you say so they can sell more do you not recall how long it took for supply to catch up with demand. You might as well say "Apple would generate a lot more interest in the Mac Pro if they sold it for $499." True, but not exactly a smart business move.

    How would losing $100 net profit per unit help them. Note that I don't think they get $100 net profit from any of the iPads until you get into the higher capacity and cellular radio versions.
  • Reply 10 of 49
    irelandireland Posts: 17,743member
    Quote:
    Originally Posted by SolipsismX View Post



    What motivation do they have for dropping the price when they already dominate the entire viable aspect of the tablet market?

     

    Because like I say, most costumers opt for the 32 GB model with a case, so in a way the 16 GB model would be more of a way of enticing them in. This is way better than merely keeping the price at $499 and making the entry level iPad 32 GB. And what better time to reduce the price by $100 when you're on top. This would cement their position and would burn the competition alive.

     

    Quote:

    You might as well say 'Apple would generate a lot more interest in the Mac Pro if they sold it for $499'.


     

    Tallest, is that you?

  • Reply 11 of 49
    solipsismxsolipsismx Posts: 19,566member
    ireland wrote: »
    Because like I say, most costumers opt for the 32 GB model with a case, so in a way the 16 GB model would be more of a way of enticing them in. This is way better than merely keeping the price at $499 and making the entry level iPad 32 GB. And what better time to reduce the price by $100 when you're on top. This would cement their position and would burn the competition alive.

    So the 16GB iPad Air would be $399 and the 32GB iPad Air would jump $200 to $599, and then another 32 and 64GB after that is only $100? That's going to fly. And if you mean that all the prices are lowered by $100 that wouldn't happen unless sales are heavily waning or there is a potential threat on the rise, which I don't see.

    Their goal is to make as much profit as possible so selling slightly more units than right now isn't going to help that if they have to lose their profits to do it.
  • Reply 12 of 49
    tallest skiltallest skil Posts: 43,399member

    All ri~ght! Break out the “NO WE’RE STILL RIGHT IT’S JUST NOT COMING OUT UNTIL NEXT YEAR PLEASE BELIEVE US” nonsense!

  • Reply 13 of 49
    radarthekatradarthekat Posts: 3,336moderator
    nobodyy wrote: »
    I don't understand how the slower iPad mini with Retina sales can be compared to the slower sales of the iPad 3, especially considering it's not noticeably thicker and it's packed with the same internal components as the Air?

    Did that little extra thickness really play into it? I don't even notice it on my riPad mini.

    If anything, the big reduction in weight to the full-sized iPad (iPad Air) caused buyers with money for the retina mini to simply jump up market to the Air.
  • Reply 14 of 49
    radarthekatradarthekat Posts: 3,336moderator
    ireland wrote: »
    Very interesting.

    I think Apple should GO-BIG this year on iPad by COMPLETELY KILLING all old models and releasing this year's models at a $100 reduction.

    Making the only two models of iPad available:

    iPad Air with A8 and Touch ID starting at $399 and iPad mini Retina with A8 and Touch ID starting at $299. That would drive sales big time and would make the iPad a way more appealing product in the marketplace. It would really simplify the whole iPad product lineup as well which would be a great thing for Apple and for potential Apple customers. Not to mention it'd give all new home and education iPad customers an amazing first time experience. It'd be a really aggressive move. This I'd love to see.

    Besides, most new iPad customers go for the 32 GB model and buy the Apple Smart Case so Apple would continue to profit well on the product. And Android tablets makers would have a heart attack.

    I'll make one modification. Keep the starting prices the same, but start at 32GB rather than 16GB. This would give the consumer more value for their money without Apple starting down the slippery slope of discounting their wares. On second thought, I think the iPad is already sufficiently far ahead of the competition that Apple can simply keep on keeping on the way they are, no new pricing model or SKU reduction needed.
  • Reply 15 of 49
    pazuzupazuzu Posts: 1,728member

    This reads like stagnant growth to me. Once you buy one iPad do you really need an upgrade every year?

  • Reply 16 of 49
    solipsismxsolipsismx Posts: 19,566member
    pazuzu wrote: »
    This reads like stagnant growth to me.

    Of course it does.


    PS: You can no girth or be stagnant but I think stagnant growth is redundant.
  • Reply 17 of 49
    pazuzupazuzu Posts: 1,728member
    Quote:

    Originally Posted by SolipsismX View Post





    Of course it does.





    PS: You can no girth or be stagnant but I think stagnant growth is redundant.

    No girth , no mirth.

     

    Add cellular capability on the mini and forget growing iPhones to compete again Samsung phatphones.

  • Reply 18 of 49
    jungmarkjungmark Posts: 6,803member
    Rumored 12.9" iPad delayed and then summarily cancelled.
  • Reply 19 of 49
    nobodyynobodyy Posts: 377member
    If anything, the big reduction in weight to the full-sized iPad (iPad Air) caused buyers with money for the retina mini to simply jump up market to the Air.

    Ah! I didn't think about that but it makes sense.
  • Reply 20 of 49
    irelandireland Posts: 17,743member
    Quote:

    Originally Posted by pazuzu View Post

     

    This reads like stagnant growth to me.


     

    Go take a holiday from here.

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