Apple is expected to release one
of its biggest products this year on October 23, several years after the
original iPad debuted. They are to release a smaller and cheaper tablet into
the market currently ruled by Amazon.com and Google Inc. Are you prepared to sellold iPad for this smaller version?
Amazon’s Kindle Fire and Google’s Nexus 7 currently hold the
lower end of the tablet computer market, which is for seven-inch tablets.
Because of their successes, Apple is forced to be part of the said market by
creating their own smaller tablet computer.
If they are to release a small tablet, this will be the
first device to be added to Apple’s portfolio under CEO Tim Cook, who took over
after co-founder Steve Jobs’ death.
Apple is going to have an event on October 23 which is
invitation only.
It is rumored that it has been months since Apple planned
for a less expensive iPad to compete with cheaper and smaller tablet computers.
This move might hurt their margins but it might also prevent their rivals from
dominating the segment for smaller tablets.
The Rivals
The greatest rival of Apple today is Amazon, which released
the 7-inch tablet Kindle Fire for $200 last year. This appealed to the masses
and is now one of the hottest-selling gadgets. Amazon is said to have sold more
than a million Kindles a week during December 2011. This paved the way for
other electronics companies like Google with their Nexus 7, just to beat Apple
in the market Apple founded.
Amazon has now released their second generation of Kindle
Fire HD in the market, which is reported to be the best product across all of
Amazon worldwide. Meanwhile, the Asustek-manufactured Google Nexus 7 ran out of
stock after its release in July.
Amazon, Google and Apple are all vying to get their gadgets
on the shopping lists of Americans during the holiday season which will start
next month.
Price Is the Way
Apple currently has a 9.7-inch iPad for $499. Its previous
version, the iPad 2, is for sale for $399.
Apple has sold over 84 million iPads, which comprises the 26
percent of Apple’s fiscal third quarter revenue. The price of the iPad Mini
will be crucial to its success, so Apple has to decide wisely.
Several surveys say that the average consumer would love tohave the iPad Mini and would buy it if it was $240. A lot responded to be
willing to pay for a 7-inch iPad for $242 and $268 for an 8-inch iPad. Since
the iPad Mini’s expected measurement is 7.8 inches, it is safe to estimate that
the average American will surely buy an iPad Mini for $250.
Lucky for Apple, their other competitors did not do well two
months after their products’ release.
Apple must not forget that one of the reasons Amazon and Google
attracted customers was because of the cheap price. If the iPad Mini is
released with a relatively cheap price, Apple will surely be successful with
this product.
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