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$250 7-inch iPad—Coming from Apple this October

Source: Apple new iPad/ Apple

Rumors of a new and smaller iPad continue to surface, as a latest report claims that Apple is gearing up to release a 7-inch 8 GB tablet this October. According to iMore’s “reliable source,” the smaller iPad could cost as little as $200.

If that will be the case, then the device would directly compete with Amazon’s Kindle Fire that is worth $199. In addition, an aggressive pricing was made in order for Apple to do for the tablet market what it did to the MP3 industry in 2004. However, such low price will make it almost unlikely for the iPad maker to achieve the same margin that the rest of its products does.

A 7-inch iPad, Unlikely to Hit the Market

This rumor emerged following the previous rumors that Apple will launch a 7-inch iPad this August. There were also other reports suggesting that the device would be almost two inches smaller than the new iPad at 7.85 inches. It is also said to feature 1024 x 768 pixels, which is the same resolution as the first and second-generation iPad. Thus, current applications written for the said tablets will run on the smaller device without the need of any modifications.

On the other hand, the source pointed out that the smaller tablet will be identical to the current model, just scaled down. This would mean that the device will also have a 2048 x 1536 resolution. Nevertheless, it is unclear whether the rumored device will ever see the light of day. That’s because Apple just released the new iPad, which featured Retina Display and 4G LTE connectivity, last March.

It is also unlikely that a small unit with a panel as large and dense as the new iPad will be priced at around $200-$250, unless Apple decided to lower its storage capacity. Other than that, a $250 price point for an 8 GB iPad would undercut the prices of most Apple products. This includes the iPod Touch 32 and 64 GB model that costs $299 and $399 respectively. Regardless, education sectors could find the 7-inch iPad that costs at least $200 an enticing offer.

 

As for Amazon’s Kindle Fire, it was reported that the device has failed to maintain its momentum after the holiday shopping season. According to International Data Corporation, the $199 tablet saw a “steep drop” during the first quarter of this year, as its share of shipments drop from 16.8 percent late last year to just 4 percent.

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