Apparently, Apple will not be releasing a 7" iPad, unofficially dubbed "iPad mini." Various reasons were cited, but the words of Steve Jobs were among the most prominent.
AllThingsD, however, quotes what Steve Jobs said during a 2010 earnings call, One naturally thinks that a 7-inch screen would offer 70 per cent of the benefits of a 10-inch screen, Unfortunately, this is far from the truth. The reason we (Apple) won't make a 7-inch tablet isnt because Apple doesn't want to hit a lower price point, its because Apple thinks the screen is too small to express the software. As a software driven company, Apple thinks about the software strategies first.
Wedge Partners analyst, Brian Blair, freely admits that Apple has been secretly testing 7 inch tablets, however, Blair believes Apple will not be releasing it in 2012.
Part of the appeal of a smaller tablet is the price point. Smaller tablets are usually priced in the mid-level price range, below $400. Blair thinks Apple will use a different strategy to hit that price point.
Wedge Partners believes Apple is highly likely to keep the iPad 2 on the production line after the launch of iPad 3 and offer it at a lower price point in an effort to address demand at the mid-price point, what they view as the $249 to $499 range. Wedge Partners believes iPad 2?s price could drop to the $349 to $399 range with Apple offering a single 16GB model.
Keeping the iPad 2 alongside the eventually upcoming iPad 3 at a cheaper price point will definitely give Apple a way to hit that lower price without forcing users to deal with screens that are 'too small to express the software.'
Tags: Apple, iPad Mini, Pad 3, rumors
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