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iMore reports that Apple is "currently targeting" an October launch for a smaller iPad, with the device carrying a display of roughly 7 inches and being priced in the $200-$250 range.
According to our source, which has proven reliable in the past, the reason for such aggressive pricing is to do to the tablet market what Apple did to the MP3 market in 2004 with the expansion of the iPod product line -- leave absolutely no space for competitors.
Interestingly, the report's source claims that the 7-inch iPad will be "identical in every way" to the current iPad with the exception of the display size, apparently including a Retina display. That would give the smaller iPad a pixel density roughly identical to that of the iPhone 4S.

It remains unclear how Apple would be able to meet a $200-$250 price point for the smaller iPad given the apparent specs, although the device will reportedly come with only 8 GB of storage. Still Apple's current iPod touch starts at $199 and this smaller iPad will undoubtedly carry significantly higher component costs.

iPad-Mini-comparison-t.jpg
Mockup of 7.85-inch "iPad mini" next to iPad 2 (courtesy of CiccareseDesign)
Reports of a smaller iPad have been circulating ever since the launch of the original iPad, enhanced in recent months by perceived competition from Amazon's $199 Kindle Fire. The sheer number of rumors suggest that Apple has at least been working on such a device, and reports of a planned launch for later this year have been increasing. Most observers have, however, believed that the device would carry a non-Retina display in order to allow Apple to meet lower pricing targets.

iMore has been rather accurate with its recent iOS device rumors, correctly pinpointing the third-generation iPad launch event date back in February and backing claims of LTE compatibility for the device ahead of its launch.

The site has since offered claims of a smaller dock connector for the next-generation iPhone, an idea which has been gaining traction with other rumors. The site has also issued claims of a fall (likely October) launch of an LTE iPhone anticipated to carry the same 3.5-inch display size seen in all iPhone models to date.

Article Link: 7-Inch iPad with Retina Display Coming in October Priced at $200-$250?
 
Still have my doubts
I can't see Apple pricing at that point
And while there may be a market, it doesn't really make sense to compete against itself
 
8GB of storage is a mistake with the size of these retina iPad apps.
 
Interesting. Competition wouldn't know what to do if Apple came out with this. I guess everyone's goal would be second place.
 
No way. They would have to seriously drop the price of the iPod Touch.

My guess is that an updated iPod Touch is coming in October at this price point.
 
I call their bluff. Apple wouldn't be happy with such slim profit margins. And I'm sure people would be happy to pay $299 for a 7 inch iPad 2.
 
Apple changing their strategy to become a loss leader in a market that they already dominate? Seems legit...

tumblr_m0jz3novys1r8ffrs.jpg
 
7.85 inch iPad? Maybe. 7.85 inch iPad with any resolution other than 1024x768? Not going to happen. Especially for 200-250 dollars. They'd really have to drop the price of the iPod Touch for anyone to keep buying it. I know its a different 'category', but who would pick up an iPod Touch for the same price as an iPad which is arguably more useful?
 
Apple has been known to pinpoint leaks by giving false information about projects to certain groups or individuals. Sounds like this is what is going on to me...

Smaller iPad so soon when the newest iPad is just coming out in many countries? At a smaller size with magically cheaper components? And WHAT space for competitors? I've never seen a Kindle Fire in the wild before. :confused:
 
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That would be nice, I passed up on the current iPad line because after trying it I found (in my opinion) it's too large and heavy for me to comfortably use and hold for more than a few minutes. Too difficult to play games on as well. Tried Temple Run on my friend's and it was ridiculously awkward.
 
If they would come out with such an iPad at such a price, Apple will easily win the market. I don't see how anyone would be able to compete with that. However, it does kind of seem like an unApple move (the price). If they would bring a 7" iPad to the market, I expect more of a 350$ price point.
 
If true..at that price the amount they would sell would be phenomenal.
I see people all over the world wanting them.

Although I do think 8GB is to small, should be 16GB minimum.
 
"That would give the smaller iPad a pixel density roughly identical to that of the iPhone 4S."

Roughly identical, you say? Hmmm.
 
Here's my prediction: the iPod Touch will be refreshed this fall and will have a bigger screen size.
 
Interesting. Competition wouldn't know what to do if Apple came out with this. I guess everyone's goal would be second place.

Everyone else's goal is to be second place.

I think all of these 7" iPad rumors could be a remote for the Apple TV...I know that is a huge stretch and 7" I think is a bit big for a remote control, but that's just my 2 pennies.
 
This wouldn't be the first time an industry leader takes on a low-end strategy to avoid low-cost disruption. It's why Intel released the celeron chip.

Makes perfect sense to me.
 
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