For the first time in a while AAPL is not the first mover in this space. This could turn out to be an advantage, for being first does not always equal success. Players like AMZN, HPQ, BKS, GOOG, and RIMM have all pumped out smaller tablet devices. While some are clearly more successful than others, AAPL will still need to differentiate the iPad mini with their iconic slick design and user-friendly operating system, for savvy consumers will maximize their hard earned buying power.
The market leading iPad 3 is 9.7 inches; some analysts and AAPL followers are expecting a 7.85 inch liquid crystal display (LCD). These dimensions are slightly different than the prevailing 7-inch norm. The heaviest competition is expected to come from the ANZN Kindle Fire and the GOOG Nexus 7; both of which have fresh models out on the market already. The new 7” Kindle Fire is priced at $159.00. At this price point AMZN is expected to just break even considering the cost breakdown, but everything after that, including items like books and movies, is what AMZN is really in the tablet business for. AAPL is expected to naturally price at the higher end of the market. Some reports have surfaced regarding Apple suppliers facing production delays. Staying on track for the unconfirmed rumored release date of Oct. 17th 2012 will be a challenge.
The ‘Apple edge’ really just dominates the competition. This includes the 680,000 apps, ecosystem, and massive following. It is hard to quantify Apple’s social clout, but as of late, anything they engineer turns to gold or at least a few billion in market capitalization. A lot is expected from the iPad mini, but it is hard to make judgments this early.
E-mail the author with any comments, questions, or inquiry mark@keeneonthemarket.com.