Print 33 comment(s) - last by WinTard.. on Oct 9 at 4:14 PM

This shows that Apple has plenty of confidence in its new addition to the iPad family despite the fact that the market is already flooded with 7-inch tablets

The iPad Mini hasn't even been announced yet, but Apple is already planning to make over 10 million of them in the fourth quarter of this year. 
Ten million iPad Minis is almost double the number of Amazon Kindle Fires that were made during Q4 2011 -- and the Fire was the hottest holiday item last year. This shows that Apple has plenty of confidence in its new addition to the iPad family despite the fact that the market is already flooded with 7-inch tablets. 
Apple is still the big player in the tablet market with its 9.7-inch iPad, but the tech giant has noticed a new trend that is grabbing customers' attention -- smaller, cheaper tablets
Companies like Amazon, ASUS and Samsung have turned the tablet world upside down with the idea of smaller tablets that are more affordable, but also have strong features. Amazon led the pack with its 7-inch Kindle Fire tablet last year for $199. Samsung's Galaxy Tabs have 7-inch versions in the mix, and more recently, Google teamed up with ASUS for the 7-inch Nexus 7 tablet for $199. 

iPad Mini rendering [Image Source: Martin Hajek]
As if that wasn't enough, Amazon jumped back into the small tablet market with a refreshed 7-inch Kindle Fire HD for $199, an 8.9-inch Fire HD for $299 and a 4G LTE HD model for $499. On top of that, the e-tailer is offering a generous data package with its tablets for only $49.99 per year. 
It's clear that the smaller tablet market is quite competitive, and it's what customers want. In Q2 2010, Apple had 84 percent of the worldwide tablet market share. In Q2 2012, this number dropped to 69.6 percent, further showing that competitors like Android-powered tablets are cutting in. 
Of course, Apple wants a piece of that pie and is looking to hold onto its tablet dominance. Doing so means the release of an iPad Mini, which is rumored to be a 7.85-inch version of the usual 9.7-inch iPad. 
[Image Source: Martin Hajek]
Apple is expected to announce the iPad Mini later this month. Last week, Apple's Asian component suppliers started production of the iPad Mini, and the tech giant is looking to make about 10 million in Q4 2012 for the holiday season. However, the iPad Mini's success will be largely based on its affordability and features, which have yet to be disclosed. 

Sources: The Wall Street Journal, Martin Hajek

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RE: Price?
By tayb on 10/8/2012 3:17:45 PM , Rating: 2
I'm curious about price as well. Given the $199 iPod touch, $399 iPad 2, and $499 iPad 3 I think it is a safe bet to estimate $249 or $299 for whatever they decide to call this thing, presumably the "iPad mini." To be competitive with the $199 Android tablets I think they'll need to hit $249 but it's a dangerous game because the closer they get to $199 the more it will cannibalize sales of the iPod touch and the closer to $399 they get the more it will cannibalize sales of the iPad 2. I'm willing to bet Apple has better margins on the iPod touch and iPad 2 than they will on a $249 or $299 iPad mini. It's an odd product in their lineup.

This also starts to bring up an interesting discussion as to what exactly constitutes a tablet. In all seriousness the iPad is just a blown up iPod touch. Now we're talking about a smaller iPad or a not quite as blown up iPod touch, depending on how you look at things. What makes the iPad a tablet and the iPod touch something else? Then we also have products such as the Galaxy Note which blurs the line again.

If they can get to $249 I think Amazon will feel it the most. The $199 Kindle Fire just feels cheap and the custom Android variant is pretty shoddy. The Nexus 7 is a pretty great tablet and should hold its own well against a mini iPad.

RE: Price?
By AdamTurney on 10/8/2012 6:12:19 PM , Rating: 2
Actually, the iPod Touch 5g is $299 for 32gb and $399 for 64gb. So unless the iPad Mini is sporting less memory and weaker specs (iPad 2 vs iPad 3) it is hard to see it being so inexpensive.

RE: Price?
By tayb on 10/8/2012 7:57:38 PM , Rating: 2
Starting price is $199 and the iPod touch, iPad, and iPhone all start with 16GB. Anything above 16GB is pure markup and profit for Apple.

RE: Price?
By Cheesew1z69 on 10/9/2012 9:32:41 AM , Rating: 2
Right from the Apple site..

ipod touch

From $299

and no 16gb...

fail on your part...

now unless you are talking about older models, but the new ones, no...

RE: Price?
By fteoath64 on 10/9/2012 5:11:55 AM , Rating: 2
If priced at $249 ( or better still $229), this Mini will sell 10 million units. Apple should not look into cannibalization within their own range of products but taking sales away from the competition!.

The main target would be iPad users who would need a second or third or fourth unit at a lower price. It would have to target the 7 inch tablet market since this is a growing area where Apple has no presence there. If they could just put the same camera as the iPhone 4S in it , that will do the job as a differentiator in the segment.
Good luck on this product Apple. For once, do something right for a change ...

RE: Price?
By NellyFromMA on 10/9/2012 11:18:58 AM , Rating: 2
Apple won't sell at $249 because they wqould absolute neuter their own market share. Think 300-350 as Apple has never once not chaged a premium, and if ever there was a time for them to claim it it would be in this market at this time.

People will buy it up for 350. A GREAT stat to note as sales move on will be how much overlap there will be between those who own an iPad of any sort and those who will now own an iPad mini.

I suspect it will be greater than anyone would estimate for any other manufacturer strictly because people who purchase Apple products tend to have plenty of disposable income and tend to not really mind having multiple devices that do the same thing.

Manufacturering of an iPad mini vs iPad3 will likely have very comparable costs. They won't eliminate more than 150 of their profits per device I don't think.

"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer

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