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Personally I think if they went this route they'd discontinue the iPad 2 and start with the iPad mini around $300-$400 but with more storage. So maybe a 16 GB would be $300 and a 32gb one would be $400. Then the next jump is the 10 inch 3rd gen iPad at $500.

I already own a 3rd gen and have no interest in anything smaller but my girlfriend has a Kindle Fire and shed be all over a smaller iPad in a heartbeat.
 
People are saying that the problem with an 8GB model is that the retina display files take up much more space and thus you'd run out of the 8GB fast. While I agree 100% there, the point of this product would not be to be a smaller iPad (2 or 3) but to be a Kindle killer. Thus the target audience would be people who read and students. ePub files are small, most of them only a few hundred kB at the most. This would make perfect sense than, why would you need more? My wife has an iPad2 and hundreds of books on it; and no more than a dozen or so apps. This is the target audience, readers! And they get all the other features and can install a few good apps.

For me, I could see myself getting one at the $199 or $249 price. Getting my kids one wouldn't be as costly either. With schools adopting ebooks, it would be very helpful for them as well.

I used to hate the idea of a 7" iPad, but have really warmed up to it after thinking about how I could use one. Maybe a $199 7" iPad2, and a $299 7" iPad3?
 
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.

I've seen the idea that Apple breaks even on iTunes, but I've never seen it published with cold hard data. Perhaps it was something that Peter Oppenheimer said at one of the quarterly conference calls back in the day.

I'd be surprised if Apple didn't make at least 5% on iTunes these days. But that's just a guess on my part. They take a 30% cut on everything. Out of that cut, they pay for the bandwidth, payment processing, software costs, etc. Other expenses they have to cover are costs associated with iTunes Match, redownloads of songs and movies ...

But, they also collect 30% on in-app purchases. The bandwidth for these items doesn't come from Apple, so they get a bit of a free ride there.

They've been in the iTunes business a long time now. I gotta beleive that they've gotten their stuff together and can cobble out a small profit.
 
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

Steve Jobs: "If you don't cannibalize yourself, someone else will"
 
If this is true and the prices is true. It will cannibalize ipod sales.

What is an iPod? Seriously who buys iPod's anymore. Do you ever see anyone ever looking at them at the Apple Store's. It is a dead product. I see the iPod mini as being the next Touch.

Plus they are saying 8GB, that could just be the base model. Surely they would offer more expensive models with more memory. They do on every other device they sell.
 
Apple changing their strategy to become a loss leader in a market that they already dominate?

And tell me how they would be a loss leader? Inquiring minds want to know...especially since Apple doesn't create products that they lose money on.

My one question is and someone can answer it because I can't. Why is Apple selling in Wal-Mart.

Oh I don't know...Maybe because Wal-Mart/Target have more brick and mortar stores in locations Apple would never open a stand alone store.

In the process, they have a mini-store within a store that teaches/shows individual how amazing Apple products and their eco-system are.

1+ Billion customers a year shop at Walmart.

But hey...what do I know.
 
I for one desperately hope they don't do this. I agreed with Steve Jobs when he pointed out their many flaws, and it would be a shame for Apple to have changed so quickly once he's gone.
 
iMore doesn't point to any credible sources, but what strikes me as most implausable is:

"Apple will be going forward with the 7-inch iPad, currently targeting an October 2012 release alongside the new iPhone"

Apple rarely steps on it's own sales and marketing. If the new iPhone schedule is now in the fall (and it would have to be this year since iOS 6 won't likely be announced until next month) Apple isn't going to launch two all-new products simultaneously.

Also, remember Amazon is taking a hit on every Fire it sells in hopes of recapturing the profit on book and apps sales. But Apple's model is the exact opposite. It makes the vast bulk of its profit on hardware and book/apps/music are a bonus. Apple stock would take a serious dive if they suddenly went from a 30-40% markup to a 15% loss on each unit.
 
If true - it's proof positive that despite what many think on here - Apple is threatened/concerned/fill_in_the_blank re: Kindle Fire and other more portable/cheaper devices.
 
i'm skeptical, 7-inch is too small for a tablet to be used with comfort

moreover, 16 Gb is really the minimum nowadays
 
Pricing for the 7.85 inch would work if it were something like this:

$249 WiFi 8GB
$349 WiFi 16GB
$449 WiFi 32GB

$369 LTE 8GB
$469 LTE 16GB
$569 LTE 32GB

Many would go for the greater storage, and some would go for the LTE version as well; the margins would be made up there.

I also think it will be positioned as the bridge between the iPod touch and he iPad and be called the iPad touch.

At this point 16GB should be the min. capacity for any iOS device with a 64GB capacity available as well.
 
Priced @ $ 200-$250? No way.

You mean Apple can lower the price from $499 to $200 more than 50% just by decreasing the size by 1.85 inch (9.7-7.85) and 8GB instead of 16GB? This will never happen because it will hurt the entry 9.7 iPad $499 so much.

I say $299 is the lowest they will do.
 
iTouch or iPad

I'd like to see this happen - a 7-8in iTouch/iPad would be great for those of us on the go who find iPad's too large and iphone's/iTouches too small for reasonable viewing.

That said, given my daughter want's a iPad - which seems awkward for games - I'd jump at this for Christmas.

If its a true rumour, hope it launches in October so I can pick one up in November - probably many parents feel like me and if its price point is correct - under US$350 with 32G SSD storage, I'd be a happy man and have a happy daughter for Christmas.
 
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.

Well, they already have dropped the price of the iPod touch to $199.

We have the "new" iPad at $499, iPad 2 at $399.... iPod Touch at $199. When the iPod Touch gets it's refresh in the fall, it will stand up better to a 7" iPad in specs... so now we're talking the only really different component between the two is the screen. The iPad is basically a big iPod touch with slightly better specs. iPod's are still the #1 MP3 player, but they're selling 70% less of the in a year than during their heyday due to smart phones. Throwing a 7" iPad out there at $100 more is a good way to keep customer tied to Apple's echo system, and generate higher revenue. That $100 would more than make up for a larger display.

What I call bunkus on is that it will have the same specs as theNewiPad. I bet they drop the rear camera. (And who needs it or uses it anyway?) It also would not need the same level of processing power to drive the smaller display, so I doubt it will have the same chip, which is always a cost savings, and I bet they come in wi-fi only.

Personally, I see them shooting for $299. $199, $299, $399, $499, $599... $100 space between each size/model of iPod Touch/iPad going up. I won't cry if its less

----------

People are saying that the problem with an 8GB model is that the retina display files take up much more space and thus you'd run out of the 8GB fast. While I agree 100% there, the point of this product would not be to be a smaller iPad (2 or 3) but to be a Kindle killer. Thus the target audience would be people who read and students. ePub files are small, most of them only a few hundred kB at the most. This would make perfect sense than, why would you need more? My wife has an iPad2 and hundreds of books on it; and no more than a dozen or so apps. This is the target audience, readers! And they get all the other features and can install a few good apps.

For me, I could see myself getting one at the $199 or $249 price. Getting my kids one wouldn't be as costly either. With schools adopting ebooks, it would be very helpful for them as well.

I used to hate the idea of a 7" iPad, but have really warmed up to it after thinking about how I could use one. Maybe a $199 7" iPad2, and a $299 7" iPad3?

Well, it's most likely not 7" but 7.9" based on all sources and rumors, and that would create a resolution that wouldn't be evil to app developers in getting their apps ready. A 7" would be chaos for developers... especially if the iPhone 5/6 (whatever they shall name it) is 4" and I think it will be.

They're not going to price is at the same price as an iPod touch. $249 is the lowest I'd see them go, and I bet more like $299. But to your point about the storage space, even going after the readers market... people will still download lots and lots of apps... and that still takes up lots and lots of space.

What they really needed to do was have the app store be smart and install a resolution appropriate version for your device rather than having developers bundle 2 graphic sets into one app that most people don't even need. As it is, most developers have gotten away from having an iPhone and iPad version and just do a universal... and that added extra size to an app before the retina issue.

However, Amazon's defense for 8G was that customers have free cloud storage... well, so does Apple with iCloud. All you iTunes store purchases are there for re-download at the tap of a finger. Traveling wouldn't be so great because one or two movies would tap you out. This is when I wish they'd put in a micro sd slot, but we know they will never do that.
 
I've seen the idea that Apple breaks even on iTunes, but I've never seen it published with cold hard data. Perhaps it was something that Peter Oppenheimer said at one of the quarterly conference calls back in the day.

Indeed it was Oppenheimer, in Jan 2010. They do manage a profit, but it's very slight. Estimates are that it costs 1.3 billion to operate.
 
Yawn! .......I´m so sick of all ipad rumors that keeps popping up. 90% of them are just stupid and boring.

Give me some proper Mac Computer Rumors....haven´t seen any for while.
 
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