We were quoted in Murad Ahmed’s article Apple strikes a mini blow against all those who would challenge the iPad in The Times today. For those without a subscription, it is all about the rumours published in Bloomberg that Apple is about to launch a 7 inch iPad costing c$199. Apple is usually leak-tight so this rumour must be taken with suspicion.
We only gave our views based on the question ‘If Apple were to launch a lower spec/lower cost/smaller iPad, what do you think?”.
Steve Jobs had been famously against a smaller iPad – believing that the current screen size was the optimal size for consuming stuff. But Apple now faces two serious lower cost/smaller competitors – the Amazon Kindle Fire and the Google Nexus7. (We’ve excluded the Microsoft Surface here. Although we have positive views about the Surface, it competes only at the highest end of the iPad market and is the same, larger size as the iPad anyway) They both have mass appeal. Of course the sub $200 price tag is hugely appealing. Anyone with kids who clamour for an iPad now find that this might be affordable as a Christmas present. Also, £500 of computer kit is a bit too much to take to the pool or to the beach – so a lower cost substitute would appeal. Maybe even as a ‘second iPad’.
Size is more subjective. Most normal websites (including TechMarketView) render well on the current iPad but wouldn’t be readable on a 7inch tablet. On the other hand, games, video, email etc are fine in 7inch.
The tablet market is already huge and is one of the only strong growing segments of the computer market. Apple has a 60% share – and probably a 95%+ share of profits from the sector. With the iPod it brought out a range of much lower cost/spec devices. So there doesn’t seem much doubt it follow the same path with the iPad.
The USP for Apple, of course, is its fantastic ecosystem of Apps, iTunes etc – all of which would be instantly available on any new iPad. Although it is only a rumour, we pronounce it a market winner already!