NEW YORK — Apple generates more gossip than the Kardashians.
There’s a constantly spinning mill of rumors about Apple products, most of which turn out to be untrue. What’s unusual this week is that talk has revived of a smaller iPad model, an idea company founder Steve Jobs derided publicly a year before he died.
Apple and its suppliers aren’t commenting. Rumors of a smaller iPad, or “iPad mini,” have percolated since the first iPad was launched two years ago. This time around, they’re fed by media reports from South Korea, China and Taiwan, saying Apple has ordered Samsung screens that are 7.86 inches measured on the diagonal. That would make for a screen about half the size of the current iPad, which has a diagonal measurement of 9.7 inches.
“From a competitive standpoint, we believe an iPad mini with a lower price point would be the competition’s worst nightmare, said Shaw Wu, an analyst at Sterne Agee. “Most (competitors) already have a tough enough time competing against the iPad 2, as well as the new iPad.”
Apple has successfully fended off competitors who have tried to sell tablets in iPad’s size range. But last year, Amazon figured out how to crack Apple’s stranglehold on tablets by making a half-size, no-frills tablet. The result was the Kindle Fire, which sells for $199 — basically, the cost of production. Amazon has sold millions of them.
Apple sells the iPod Touch for $199, but its screen is about a quarter of the size of the Kindle Fire — a big disadvantage for people who want to enjoy books, movies and games. It also sells the older iPad model for $399. It has nothing in between.
Price isn’t the only reason customers might prefer a smaller tablet. A 7-inch model would fit in many handbags, unlike the current iPad.
Apple’s late CEO made a rare appearance on an October 2010 earnings conference call to launch a tirade against the 7-inch tablet Samsung was set to launch as the first major challenger to the iPad.
“The reason we wouldn’t make a 7-inch tablet isn’t because we don’t want to hit a price point, it’s because we don’t think you can make a great tablet with a 7-inch screen,” Jobs said. “The 7-inch tablets are tweeners, too big to compete with a smartphone and too small to compete with an iPad.”
