Apple´s 7-inch iPad Rumours

According to sources from inside the electronics industry, Apple is preparing to release a 7-inch iPad in the final quarter of next year. The tablet wars have been bubbling under the surface for some time now, but in 2012, it seems they are set to explode.

The rumours of Apple´s proposed tablet have surfaced from sources at the technology giants supply chain in Asia who claim preparations are being made to produce a smaller iPad with a 7.85-inch screen. Industry insiders believe the move is to fend off the competition from companies producing the miniature handheld tablets such as Amazon´s Kindle Fire.

Tawainese magazine DigiTimes reported in their latest edition that Apple is “likely” to produce a second tablet next year, just eight or nine months after the launch of the eagerly anticipated iPad3 which is expected to hit the shelves around March or April 2012.

“In order to cope with increasing market competition including the 7-inch Kindle Fire from Amazon and the launch of large-size smartphones from handset vendors, Apple has been persuaded into the development of 7.85-inch iPads,” the article notes sources as saying.

The report goes on to say, Apple representatives are in talks with LG Display and AU Optronics regarding components that are believed to be for the baby iPad. If the rumours are true, production of the new-generation tablets will begin during the summer with a view to releasing them on the market before the festive holiday season.

Of course, this is not the first time rumours of Apple releasing a 7-inch tablet have surfaced and the rumours should be taken with some degree of scepticism as DigiTimes has a hit and miss track record when it comes to predicting the activities of the American multimedia giants. Indeed, the mill seemed to have ground to a halt when Steve Jobs claimed that a 7-inch screen was “too small to express the software.”

Perhaps Jobs had a point, but then again he was a perfectionist. Amazon chiefs didn´t agree when they released the seven inch Kindle Fire earlier this year, though the device has had mixed views. Some analysts tout the Kindle as iPad´s closest rival, whilst others complain about it usability and slow download speeds. Given that none of the complaints relate to a small screen, it would appear that Apple, under the guidance of new CEO Tim Cook are now prepared to follow suit and release a 7-inch tablet.

Yet it seems that whatever Apple are prepared to do, Amazon are prepared to push the boundaries as well. Recent reports suggest the online warehouse is looking to add to the Kindle fire and release an 8.9-inch model. Just last Thursday Amazon announced the Kindle was holding its own in the market stating that millions of devices had been sold – although they didn´t provide a specific figure and analysts have not yet published a significant report that measures the Kindle´s performance against the iPad2.

Having said that, market research firm IDC recently published a report speculating that Amazon´s Kindle Fire is set to reduce Apple´s market share to below 60 per cent in the final quarter of this year. At the end of the third quarter, the iPad had cornered a 61.5 share of the global market but analysts believe the introduction of cheaper handheld models those figures could drop by around 2 per cent. That may not sound good news to Apple, but when they consider their closest rival in the tablet market, Samsung, only held a 5.6 per cent share of the worldwide market, the American super-giants are way ahead in the race for the atomic tablet.

In comparison, Google’s Android OS took a heavy blow when reports were published that the 3.1 Honeycomb operating system was “unusable” which prompted a number of companies to either postpone production or withdraw handsets from the market until Google could fix the problems. Now they have, analysts are predicted Android tablets will take a combined 40 per cent or more share of the market, which still leaves Apple way ahead of its competitors.

Analyst Jennifer Song, representing IDC stated in her report that Apple was fortunate to get a head start on tablet-specific apps and corner the market, but with the emergence of a strong line-up of competing Android tablets the Americans will not be able to maintain their stranglehold of its “global leadership.”

The report went on to say: “An improving Android OS experience and lower competitor pricing in an environment with worldwide economic concerns should help Android to increase its market share,” she said. And with a number of other analysts also speculating iPad sales are likely to fall, it would also appear that Apple executives have reached the same conclusion and are preparing the launch of a mini-iPad to compete with their rivals. 2012 is shaping up to be an interesting year in the tablet wars.