Why Apple Would Release a 7-Inch iPad

Rene Ritchie:

If Apple can make a 9.7 inch iPad for the same price Apple’s competitors can make a 7 inch tablet, how much would it cost Apple to make a 7 inch tablet?

It’s hard to imagine a $200 7 inch iPad having huge margins, but it was hard to imagine a $500 9.7 inch iPad having huge margins in 2010. Now the entry-level 9.7 inch iPad 2 sells for $400.

I bet Apple could make a $199 iPad Mini and turn a profit on it — especially with a $249 version sitting next to it with double the storage. It’s that simple. If Apple thinks people would buy a smaller cheaper iPad and that they can turn a profit making them, they’ll do it. No reason to overthink it.

Keep in mind too that Amazon still only sells the Kindle Fire in the U.S., and Google is only selling the Nexus 7 in three countries — and outside the U.S. it won’t have music, magazines, or TV shows. Even if this iPad Mini doesn’t ship until October, Apple will likely beat Amazon and Google to market in much of the world.

β˜… Wednesday, 4 July 2012

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