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I wonder if Apple is in fact making so much money from App and content sales on the iPad, that they are willing to lean forward with an aggressive price point
No need to wonder about this. It's public information. LINK TO APPL Q2/2012 SUMMARY
In Q2-2012 (Jan-Mar'12), Apple had revenues of $2.15billion from iTunes. This includes the iTunes Store, App Store, and Mac App Store.

In the same quarter, Apple had revenues of $6.6billion for iPads.

The numbers say that they are generating much more revenues from iPad sales than they generate from app sales. I don't have the profit numbers from these two sectors, but iTunes profit margin has to be less than 30%. I'm guessing iPad margins are around 30% or so.

In other words, I doubt that they'd be going with the razor-blade model anytime soon.
 
Over at the AOPA (Aircraft Owners & Pilot's Association) forums, there is lots of talk about the iPad being to big to use as a yoke mount EFB, depending on the aircraft and personal preference. Most of the people who are going android are specifically doing so because of the smaller form factor of the 7" tablets.

I hope the $200- $250 iPad mini rumors are true, with maybe a more expensive one with 16 gig storage. While I will keep my 10" iPad, I think there is a large market of people who will be willing to pick up a smaller iPad at that price.
 
I don't think this 7-incher is intended to be a mini iPad, I think it's intended to be the new, bigger iTouch. Fits the development timeline and Apple is about upgrades not downgrades.
 
As a developer - YES. At that price it will introduce so many people to iOS, meaning the market will grow at an even faster rate.

As someone who follows Apple, I highly doubt it. $200? The Kindle Fire sells for that price. What happens to iPod Touch? It will look strange if you get more battery, more screen, more...everything for the same price.

And 8GB is usable, but on an iPad seems it would be restrictive. Putting an app like GarageBand on it will easily take up an 1/8 of your free space. The only way I see this happening is if there is some iTunes streaming service. Buying a movie would put you on the verge of running out of space. But if you can just stream it, that no longer matters.
 
I still think a smaller and cheaper iPad would sell very well and would get in to more peoples hand.

There are still a lot of people who would like to get a tablet but can't really justify the $400-500 price tag. At $200-250 that would probably low enough to say screw it. I'll get one although I think $299 would be the lowest Apple would go with them.
 
My theory is ... Apple is doing their best to find the mole/leak coming from their high profile meetings.

For example ... Tim Cook privately setup `Meeting One` for 20 people. Cook mentioned "iPad Mini" to 'em. Tim Cook also setup `Meeting Two` for 20 more different people. He mentioned "iPad Midget" to 'em.

So whoever leaked "iPad Midget" coming from his profile meeting then he knows that Meeting Two is responsible, not the other. He will hammer 'em down till the last one who was the responsible for it.

Hope this make sense.
 
I would hope the base model is 16GB. With the option of 32GB and preferable 64GB as well.

I'm basing this on how much storage I'm using on my iPod Touch as I would get a 7" iPad instead of a new iPod Touch. And at that point I'd most likely get the battery replaced in my current iPod.
 
Over at the AOPA (Aircraft Owners & Pilot's Association) forums, there is lots of talk about the iPad being to big to use as a yoke mount EFB, depending on the aircraft and personal preference. Most of the people who are going android are specifically doing so because of the smaller form factor of the 7" tablets.

I hope the $200- $250 iPad mini rumors are true, with maybe a more expensive one with 16 gig storage. While I will keep my 10" iPad, I think there is a large market of people who will be willing to pick up a smaller iPad at that price.

It's too big for a lot of functions...it's great for home and for business...and the iPhone really is too small for most tasks...

The 7" form factor would be great for a ton of industries.
 
[/COLOR]No need to wonder about this. It's public information. LINK TO APPL Q2/2012 SUMMARY
In Q2-2012 (Jan-Mar'12), Apple had revenues of $2.15billion from iTunes. This includes the iTunes Store, App Store, and Mac App Store.

In the same quarter, Apple had revenues of $6.6billion for iPads.

The numbers say that they are generating much more revenues from iPad sales than they generate from app sales. I don't have the profit numbers from these two sectors, but iTunes profit margin has to be less than 30%. I'm guessing iPad margins are around 30% or so.

In other words, I doubt that they'd be going with the razor-blade model anytime soon.

Thanks

My point is that the installed base is rapidly growing, they are adding more content, and they are expanding the ecosystem to more countries and regions.

If this is theory holds any water, I'd expect to see iTunes revenue begin to dramatically increase. Much much faster than the current 35% Y/Y growth

I'm sure I am wrong, but wanted to put it out there as a thought. I (and my family) are personally spending hundreds of dollars a year on iTunes and App Store content. And I know a lot of friends doing the same. I know, anecdotal
 
I don't think this 7-inch let is intended to be a mini iPad, I think it's intended to be the new, bigger iTouch. Fits the development timeline and Apple is about upgrades not downgrades.

That doesn't make any sense. They are going to enlarge a UI designed for a 3.5 inch screen for a 7" screen? Why?? A 7" iPad at the resolution of the iPad 2 would be a Retina display. The UI would easily fit (In fact, John Gruber has stated that Apple has working prototypes of such of a device; he just don't know if they plan on bringing it to market.)

Unless you are insinuating that the iPod touch will be replaced by this, but I see that as highly unlikely. An iPad Mini can't fit in your pocket.
 
if this is all planed for the Sept Launch event we expect Tim Cook to spend

20 min's on the new iPod's this year
30 min's on the iPad Mini
45 min's on the iPhone 5

Sept looks to be pretty exciting
 
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.

If it happens, $299.00 will be the base price.
 
So Apple will be competing with itself.. hmm, a risky move.
I know a lot of people who would pay $200 less for a 7inch iPad (guessing the actual price point will be 250 to 300), as opposed to $500 for a 9.7inch iPad.

Apple could end up greatly reducing the iPad sales, if there is an iPad Mini. However, it comes down to the profit margins, if the return is greater with the Mini, then it makes perfect sense.


I'm growing impatient. iMac?

The Mac doesn't bring Apple enough sales compared to it's iDevice line, they stopped caring about the Mac sometime ago.
 
The numbers say that they are generating much more revenues from iPad sales than they generate from app sales. I don't have the profit numbers from these two sectors, but iTunes profit margin has to be less than 30%. I'm guessing iPad margins are around 30% or so.

In other words, I doubt that they'd be going with the razor-blade model anytime soon.

They more or less break even with the iTunes store. It's a lot less than 30%. All of their profit is in the hardware.
 
Because RIMs PlayBook is selling like sliced bread right now. :rolleyes:

The Apple Store 2013, according to business analysts:
2-currents-art-gf3frfa9-1ohs-3502-jpg.jpg
 
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