Ticonderoga Securities analyst Brian White is fueling speculation that Apple
A year ago, the late Steve Jobs had referred to the batch of 7-inch screen tablets, mostly running Google
The only 7-incher that stands to make it big is Amazon.com's
Apple would have to make a lot of sacrifices to get costs down to that threshold. The real question is whether it would be a good strategic choice.
Apple's brand has always commanded premium pricing, so taking out features to move down the price scale just to compete with Amazon seems out of character. The company's lineup is already pretty full, with all the major price points covered. The iPod touch is a smaller iPad for all intents and purposes, and I've always thought Apple should redub the device the "iPad nano" because of the similarities.
|iPod touch||8 GB||3.5-inch (diagonal)||$199|
|32 GB||3.5-inch (diagonal)||$299|
|64 GB||3.5-inch (diagonal)||$399|
|iPad 2 (Wi-Fi only)||16 GB||9.7-inch (diagonal)||$499|
|32 GB||9.7-inch (diagonal)||$599|
|64 GB||9.7-inch (diagonal)||$699|
There's not really a lot of room here to squeeze in a cheaper iPad without encroaching on iPod touch territory. The Kindle Fire has distanced itself from the iPad to the extent that the devices target different market segments. I can see why some analysts think the move makes sense, but I think Apple will do just fine without an "iPad mini."
Fool contributor Evan Niu owns shares of Apple and Amazon.com, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Apple and Google. Motley Fool newsletter services have recommended buying shares of Apple, Google, and Amazon.com and creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.