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Smaller iPad Could Boost Apple’s Sales in the Tablet Market

Source: Apple's new iPad/ Apple

An analysis from Barclays Equity Research stated that Apple could increase its tablet sales beyond the education sector by making its iPad more affordable. There are various rumors claiming that the company is planning to release a 7-inch tablet, which will feature a 1024 x 768 screen resolution. This means that the smaller iPad will boast a display that has an identical resolution as the iPad and iPad 2.

Smaller iPad, Expanded Market

Barclay’s analyst Ben Reitzes believes that a smaller and more affordable iPad would help Apple to promote its device to education sector. Moreover, it would help the company expand their tablet market, allowing them to reach as much as 35 million sales in 2015.

Reitzes also believe that a 7-inch tablet would attract the gaming market, as the iOS gaming will continue to become a bigger platform for Apple. Although it could take away the sales for the existing 9.7-inch model, the analyst believes that it is worth the exchange for increasing the market that Apple can address. This is also one way for the company to fend off their competitors.

He pointed out Apple’s re-priced 16 GB iPad 2 at $399. After cutting off the price, the second-generation tablet was able to combat Amazon’s $199 Kindle Fire. In fact, International Data Corporation revealed earlier last month that the Kindle Fire dropped its market share from 16.8 percent during the last quarter of 2011 to just 4 percent during the first quarter of this year.

Meanwhile, Amazon is expected to expand its tablet lineup with a larger model. This could motivate Apple to increase its product line accordingly.

Discounted MacBook Air vs. Ultrabooks

Other than a smaller and re-priced iPad, Apple is also reported to introduce a more affordable Mac platform with a $799 MacBook Air. According to the company’s upstream supply chain, they are planning to release a more affordable ultrathin notebook on the third quarter of this year.

It is said that discounted MacBook Air is aimed to compete against the second-generation ultrabooks, which manufacturers hope to price at $699. As of the moment, Apple’s cheapest MacBook Air model is the 11.6-inch unit. It is priced at $999 and comes with a 64 GB solid-state drive. The company also offers a stripped down 13-inch model on the same price for the education sector.

 

It was just last April when the company reportedly gave a go signal for a 7-inch iPad prototype. Carrying the same resolution as the original iPad and iPad 2, it means that the device’s current applications can still run on the smaller tablet without any modifications. However, it is still unclear whether the rumored device will ever see the light of day.

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