Is it Finally Time for a Smaller iPad?

I’ve been a strong skeptic of the “iPad mini” rumors that have been going around. I didn’t think that Apple would feel the need to compete with the likes of the Kindle Fire and the Nexus 7. I didn’t think that Apple would want to introduce a cheaper alternative to the already dominant iPad and risk cannibalizing its own sales with a less-profitable device. But I’m a reasonable person, I know when it’s time to stop trusting my gut.

I knew the rumors might actually carry some weight when MG Siegler, John Gruber, and Marco Arment all began talking about the iPad mini as a likely product, but these guys can still be wrong. They can get bad hunches or bad information. Now though, information has apparently leaked directly from Apple to Bloomberg, The Wall Street Journal, and the New York Times. That pretty much seals the deal, it’s only a matter of time before we start seeing blurry photos of iPad mini parts.
The available information isn’t too specific yet, but there are some agreed-upon details. The new iPad will be “between 7 and 8 inches” (which fits with more specific rumors of a 7.85-inch device) and will cost significantly less than the current iPad. Production should be ramping up soon.

Nobody has been too specific about price, but I imagine the device would fall somewhere in the $250-$300 range. Google and Amazon are selling their tablets on razor-thin margins in hopes of making a profit on the content and apps they sell. Apple tends to go with the opposite strategy, they make their money on hardware and use software and content to make their hardware more attractive. Because of that general strategy, I doubt Apple will try to match the Kindle and the Nexus 7 on price. Plus, Apple is unlikely to cut corners by using cheaper materials. It would also seem strange to sell an 8” tablet for the same price as the iPod Touch which currently occupies the $199 price point, but Apple could always reduce the price of the Touch.

On the other hand, Apple may be able to build their tablet for less than Google and Amazon because of Tim Cook’s deft management of their supply chain. Apple’s use of similar materials across products (aluminum and glass) is more than a stylistic choice and they have been producing iPads, iPhones, and iPod Touches in volume for quite some time now. It’s possible that they could pull off a lower price point than one might expect.

The other big question is timing. Will Apple be able to ramp up production in time for the holiday shopping season? I can’t imagine they would let this much information slip about they don’t plan on shipping this year. Apple typically releases iPod updates in September/October or January/February, but they typically hold to tradition only when it serves them. I wouldn’t be too surprised if we saw a November release.

In any case, keep your eyes open and, if you’ve been eyeing the Kindle Fire or Nexus 7, you might want to keep that credit card pocketed for now.

Source: digg.com