We know from rumor and from the Apple-Samsung trial that Cupertino is working on a 7-inch tablet, possibly for introduction in Q4 this year. However if it fails to offer one it will cede that potentially significant market to Google and Amazon — and possibly Samsung.
The question, however, is how to introduce a smaller device, price and market it so that it doesn’t cannibalize iPad sales (or iPod Touch sales for that matter). As a competitive matter, it would have to be priced at or below $250 and a entry level version would probably need to be priced at or below $199.
It’s worth noting that the entry level price for the current iPod Touch is $199. It’s likely that a majority of iPod Touch sales over time will be lost to 7-inch tablets (e.g., Nexus 7). So this is another reason for Apple to get into the 7-inch tablet game, even if it cannibalizes current iPod Touch sales.
The blog 9to5Mac believes the new 7-inch Apple tablet will be a larger iPod Touch, while Apple watcher John Gruber thinks it will be more like a small iPad than the former. Regardless, the device needs to work for consumers and developers and be priced right.
It makes some sense to me to position the new tablet as a larger iPod Touch but there’s probably more marketing bang to be had from calling it an iPad. The iPod Touch is perceived as a device for kids or those without an iPhone. There’s more “sex appeal” in the iPad category.
It’s probably unlikely that a 7-inch Apple tablet would significantly cannibalize iPad sales. The larger screen makes a difference across a range of apps and experiences (e.g., video). And people will want that. But there’s a balance and a pricing dilemma for Apple.
The iPod Touch is the only iPod category that’s growing. Conventional iPods are declining in sales. Apple in part uses the iPod Touch as a way to “acculturate” kids and others to the world and ecosystem of the iPhone. It’s a strategic product.
However, for most people (and certainly gamers) a larger iPod Touch would be welcome. But at $199 a 7-inch Apple tablet would likely kill the current iPod Touch unless the price of those devices were dropped to a range of $149 (or less) to $299.
August 15th, 2012 at 7:37 pm
After a few weeks with my Nexus7, I am sold on the form factor. I use it 3-4X as much as my iPad. The product also convinced me that the product advantage of Apple’s iPad has eroded substantially; I don’t miss the iPad experience, and really like the integrated Google notifications and app integration.
As for branding, neither mini or maxi belongs in a product name with iPad.
August 15th, 2012 at 8:48 pm
I also have the Nexus 7 and like it very much. I still use my iPad a great deal but my iPad(s) are stationary in their respective rooms like PCs. I have the Nexus 7 with me more often. I also use my iPhone less in the house than before.
August 16th, 2012 at 6:35 am
Does anyone think that Apple would be too concerned about cannibalizing their iPod Touch? Its a pretty old product and doesn’t hold any “unique” part of the market for them.
August 16th, 2012 at 2:31 pm
You’re right that the Touch is a product that may be nearing the conclusion of its utility for Apple — especially if there’s a new, affordable 7-inch device.
August 16th, 2012 at 3:12 pm
When I first heard about the Nexus 7 I was really interested in buying it immediately. But, being an avid iPad user, when a coworker at Dish told me about the iPad mini, I decided to wait and see what might happen. At this point, I would much rather wait another month or 2 and get what would actually interest me. It would be incredible to use a 7 inch tablet right now when I’m not at home, especially with football season finally here, to watch live TV on the Dish Remote Access app, but I have to wait for the iPad Mini to come out. I can’t wait to hear what Apple has to say about it next month; hopefully we see it sooner rather than later!
August 16th, 2012 at 3:35 pm
We’ll see what emerges in September. I think Apple has to produce one of these at this point.
August 17th, 2012 at 3:42 am
Apple is surely set to disappoint a lot of people at their next big release.
Consumers are not expecting from Apple:
1. An amazing iPhone 5 that makes the Samsung Galaxy look like something from the past.
2. A 7 inch iPad.
3. Apple TV in time for Christmas. Common they have been promising us this for years.
It seems that their approach of giving us one new device per announcement is surely going to lead to certain disappointment from consumers. Why can’t Apple give us all 3 at once?
August 17th, 2012 at 3:47 pm
I’ll predict they’ll give us two out of three. They’re very measured in their approach to try and keep things coming. They also probably feel that consumers can’t digest too many devices/new products simultaneously. That belief is probably justified.
August 20th, 2012 at 12:47 am
Oh how I wish an Apple TV was one of those 2 things!
August 20th, 2012 at 2:43 pm
Well at some point they will release a more ambitious TV offering; it sounds like they’re getting ready to.
August 23rd, 2012 at 1:11 pm
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