iPad mini

[Apple II+]

Oct 3, 2012 10:30:40 GMT -5 mbeauch said:

Not sure I follow you. I used $500 & $300, a $200 difference. The cheapest iPad is where the mini would take sales. Me thinks you are fudging the numbers to try and get a desired result. Don't forget that this would be a new product, so counting on 50% GM is asking a lot.

Desired result? You bet! But I'm not fudging beyond what I think is reasonable.

adam suggested a $200-$300 difference. I'm more in the $100-$200 camp, so I used $150 in my example.

$500 iPad ASP is much lower than anything we've seen so far. The low was $538, but that's depressed due to iPad 2, which I think is going away. Within a year I don't think Apple will make previous generation iPads any more. There will only be an iPad and an iPad Mini. Thus the name change, New iPad instead of iPad 3. All this to say, iPad ASP is going up from $538 to say $550.

I see $300 as the entry level iPad Mini, with $400 and $500 models as well as 3G/LTE models at even higher prices. That's how I get to a $400 ASP there.

[drewbear]

Oct 3, 2012 10:52:55 GMT -5 Apple II+ said:

Within a year I don't think Apple will make previous generation iPads any more. There will only be an iPad and an iPad Mini.

Good point. A year later, all iPads will have retina displays.

[Mav]

Possibly. I mean hey, the iPad mini already has Retina pixel density covered with the 7.85" form factor. Just make bigger screens based on the iPhone, IIRC.

[traitorjoe]

Oct 2, 2012 23:33:45 GMT -5 renee said:

I note that all of the participants in this particular discussion are male. Just wanted to point out to you that, Imho, the demand for ipad mini would be off the charts because it would fit into many standard size pocketbooks. I have an ipad 2 and find myself using a less attractive bag everyday so I can take it with me. Looking forward to a fashion liberation when mini can come with me in one of my regular purses. For this convenience, I would buy a second smaller ipad and gladly pay the same price as ipad2.

Renee, this is an excellent point - I know numerous women who have stated exactly the same sentiment about the importance of something larger than a phone and smaller than current iPad to place in their purse

For Mbeauch and others- you are missing point in assuming that price needs to be much cheaper in order to create a perfect stair step related to size. Apple wants to continue to own usage occasions in all tablet forms/factors as this segment grows to meet these users needs. I was in Consumer product goods for decades and this is how companies look at dominating a fast growing segment that they have the lead in - meeting all the current and new users needs, not worrying about hurting or cannibalizing your own current sales piece of the pie - They want the whole pie !!

[Mav]

Btw, it's not just a gender thing. The 3rd gen iPad is comfortable enough to use _without_ a case, but when you add a decently-protecting one, it can get unwieldy in certain situations.

A whole bunch of people would be very, very happy with a lighter, smaller, still-functional-enough smaller iPad. And the third-party accessory makers should be pretty jazzed too.

[mbeauch]

Th price will determine everything. You can't "shrink" it and expect to get the same price, consumers don't work like that. Sure, the well to do will buy just because they can, but the masses, the Nexus & Kindle buyers are fixated on price. If the entry mini is more than $300 I will be shocked.

[Mav]

I'm thinking $299-$399 starting price, somewhere in that range.

Apple could employ a semi-premium components strategy. A6 chip, if no Retina Display. Good cameras. iPhone 5-esque design.

[adamthompson32]

With iPad mini getting an Oct/Nov launch do we have staggered iPad launches every year (regular in March and Mini in November)? Does this have any implication for a possible iPhone mini in March/April (2013? 2014?) Is this a way for apple to further smoothe out seasonal demand while ramping volumes in both product lines to astronomical new heights?

I still don't want an iPhone mini at this time but I see this as a plausible strategy in the future.

[ellsab]

All this talk brings me to ask, why not a larger Iphone! For business people on the go all day, the current iphone is slick, awesome product, but I would be more than happy to sacfrice a larger (or thicker) unit if I can get a true full day usage on one battery charge. Just as we all think one size does not fit all for the Ipad, I also believe the same for the Iphone, larger unit with 12-15hrs would be perfect phone! There is definately a market between the Iphone and Ipad the gap is just too great.

[adamthompson32]

Oct 4, 2012 8:23:52 GMT -5 ellsab said:

All this talk brings me to ask, why not a larger Iphone! For business people on the go all day, the current iphone is slick, awesome product, but I would be more than happy to sacfrice a larger (or thicker) unit if I can get a true full day usage on one battery charge. Just as we all think one size does not fit all for the Ipad, I also believe the same for the Iphone, larger unit with 12-15hrs would be perfect phone! There is definately a market between the Iphone and Ipad the gap is just too great.

Moot point if you are of the view that eventually iPad absorbs iPhone much like iPhone has absorbed most, if not all, iPod functionality. iPad may eventually become the true king of Apple's castle. We'll see where SJ's vision of convergence takes us.

[davidcv100]

Suppliers see 'frustrating' yields building Apple's 'iPad mini,' supply constraints expected
By Neil Hughes
appleinsider.com.feedsportal.com/c/33975/f/616168/s/241f386c/l/0Lappleinsider0N0Carticles0C120C10A0C0A40Csuppliers0Esee0Efrustrating0Eyields0Ebuilding0Eapples0Eipad0Emini0Esupply0Econstraints0Eexpected/story01.htm

Development of Apple's rumored 7.85-inch iPad has been "no walk in the park for suppliers," according to one analyst, who has warned that supply will not likely be able to meet demand when the product launches.

Brian White with Topeka Capital Markets said on Thursday that he has heard suppliers have found the specifications for Apple's so-called "iPad mini" to be challenging. As a result, yields on production of the device are said to have been "frustrating."

White originally believed that Apple would launch its smaller iPad in September, but he said Thursday that the debut was pushed beyond his original expectation because of apparent yield issues in production.

"Despite continued yield challenges, the supply chain feels the much anticipated iPad Mini is on track to reach acceptable volume levels for a launch over the next month," White wrote in a note to investors. "That said, we believe that supply constraints will initially hold back the full sales potential during the first month or so of the launch."

Apple has seen similar issues with the iPhone 5, which launched last month in Apple's most aggressive global rollout ever. Estimated shipping times on the iPhone 5 remain at 3 to 4 weeks from Apple's online store in the U.S.

White believes the iPad mini will debut with a price between $250 and $300. He expects Apple will sell between 5 million and 7 million units of the new, smaller tablet in the December quarter.

"Despite the low price point, we expect Apple to maintain the iconic aesthetics of the current iPad and blow away what competitors are offering in this smaller form-factor tablet market."

Mass production of the iPad mini is currently underway at Apple's suppliers in China, The Wall Street Journal reported this week. The new device is said to have a 7.85-inch display that is smaller and lower resolution than the current 9.7-inch iPad with Retina display.

With production said to have begun on the iPad mini, a flurry of component leaks claimed to be from the new device have appeared online. Earlier Thursday, purported headphone jacks from the smaller iPad were discovered online, while a collection of parts including front and back panels, an LCD display and a nano-SIM tray were pictured on Tuesday.

[artman1033]

Oct 2, 2012 8:44:02 GMT -5 artman1033 said:

Is there still a screen shortage?
The new iPod touch and the iPod nano STILL do not show a shipping date. And folks say Apple is coming out with a NEW product, with a NEW screen size.

And now we read that the iPhone 4, the iPhone 4s, and the iPhone 5 are ALL SOLD out. Time to come out with an all NEW product.

[davidcv100]

WSJ: Buzz Building for Smaller Apple Tablet
blogs.wsj.com/digits/2012/10/07/buzz-building-for-smaller-apple-tablet/
By Lorraine Luk

Apple hasn’t officially confirmed plans to launch a smaller tablet, but the buzz is already building.

Some component suppliers to Apple in Asia say they have received orders to make more than 10 million units of the smaller tablets in the fourth quarter. That is roughly double the order that were placed for Amazon’s Kindle Fire tablets in the same quarter, these suppliers say.

The figure indicates that Apple believes demand for the product will be strong, despite stiff competition in the market.

Apple hasn’t responded to requests for comment on the smaller tablet dubbed by the industry as the iPad mini.

The Wall Street Journal reported earlier this month that Asian component suppliers have already started producing the smaller 7.85-inch tablet. Apple hasn’t confirmed when the new device will be available, but AllThingsD, a sister publication of The Wall Street Journal, reported last month that Apple plans to unveil the smaller tablet later this month.

Analysts say strong consumer demand for Samsung Electronics ’ 5.3-inch Galaxy Note and Amazon’s 7-inch Kindle Fire shows that there is demand for a smaller tablet. Apple currently offers only one size –the 9.7-inch iPads.

“It makes sense for market leader Apple to extend its dominance in tablets with a smaller tablet,”said Capital Securities analyst Diana Wu.

Although Apple is still the biggest tablet maker in the world, its share of the market has been slipping following the launch of Android-based products.

According to market research firm iSuppli, Apple’s share of the worldwide tablet market was 69.6% in the second quarter, down from nearly 84% in 2010. The second-largest player was Samsung Electronics with 9.2% of the market in the second quarter.

Analysts say the challenge for Apple will be to price the smaller tablet attractively in order for it to succeed. Amazon’s 7-inch Kindle Fire HD sells for $199 and Google GOOG -0.05%’s 7-inch Nexus 7 sells for $199.

“iPad mini will be a big hit if Apple prices it below $300,” said RBS analyst Wanli Wang.

[Mav]

And it will be a big failure if Apple prices it at $349...or, the unthinkable $399?

[adamthompson32]

Yep.

[Mav]

Woohoo!

[drewbear]

For the handful of people who do not know what "yep" refers to, here's the link:

www.loopinsight.com/2012/10/12/apples-rumored-oct-23-ipad-mini-event/

[Mav]

I'm sure pricing remains a "concern" for certain pundits, bloggers and media.

And I'm about as sure I don't really "care", because there will be a meaningful price difference in between iPad 3 and the not-so-rumored iPad mini (which I'll refer to as "mini" from now 'til the event for pure convenience reasons).

Hoping Apple won't scrimp too much on performance (A6-like or even A5X derivative, though A5 would be acceptable with a correspondingly lower price point).

[mbeauch]

Oct 12, 2012 11:08:54 GMT -5 Mav said:

I'm sure pricing remains a "concern" for certain pundits, bloggers and media.

And I'm about as sure I don't really "care", because there will be a meaningful price difference in between iPad 3 and the not-so-rumored iPad mini (which I'll refer to as "mini" from now 'til the event for pure convenience reasons).

Hoping Apple won't scrimp too much on performance (A6-like or even A5X derivative, though A5 would be acceptable with a correspondingly lower price point).

Mav, I do not believe Apple will release a product that could be perceived as low grade. It will run IOS6 and I would be incredibly surprised if it has less than the A5X. Price is of course the big deal. I do wonder about LTE. If this device is to be marketed for people on the go, then it would have to be available, just at a higher price. How much of a difference do you think there is between chips, $5 maybe?

[Mav]

You may be right. No one really knows the processor cost but rumors have it in the under-$30 range, which would make sense given Apple's insane volumes.

To me, if iPad new and iPhone 5 have LTE, iPad mini has at least a good shot of having LTE. A6 would blow everyone out of the water - though there might be a lingering concern about where that "leaves" iPad 3.

I just sent a PM to pats asking him to Google around and find iPad's new forum. I doubt I'm the only one to PM him, but hopefully he can join us and provide some perspective.