Analysts are expecting that Apple will roll out a smaller model of the iPad in October. It is believed that a slight refresh of the iPad will come at the same time to compete with with Amazon’s Kindle Fire 2 and Google’s Nexus 7.
“Based on our supply checks, we expect Apple to launch a 7.85″ iPad in October. We anticipate an entry-level 7.85″ iPad with 8GB of NAND capacity to price at $299 with an initial gross margin of 31 percent,” wrote Pacific Crest analyst Andy Hargeaves. “We estimate Apple will sell 10.0 million 7.85″ iPads in FQ1 (Dec.) and 35.2 million in all of F2013. We anticipate 25 percent cannibalization of the larger 9.7″ iPad (for every four 7.85″ iPads added, we reduced our 9.7″ iPad estimate by one), so our total F2013 iPad estimate increases to 91.6 million from 65.2 million.”
“We expect at least three significant small-form-factor tablets from tech behemoths to be in the market this holiday season: Apple’s 7.85″ iPad, Google’s Nexus 7, and a redesigned Amazon Kindle Fire,” added Hargeaves. “This will drive significant marketing spending to the lower end of the market, which, along with the attractive prices, could drive greater cannibalization of larger tablets than we currently expect.”
Source: paccrest.com
