Apple introduces eight-inch mini iPad

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Apple will begin to sell an eight-inch version of the iPad on Friday to compete with Amazon.com's Kindle and other smaller tablets.

Apple will begin to sell an eight-inch version of the iPad on Friday to compete with Amazon.com's Kindle and other smaller tablets.

Apple unveiled a smaller, 7.9-inch iPad boasting all of the features of its larger iteration to the world on Tuesday.

The US tech giant has sold more than 100m of the devices since the iPad's launch in April 2010 and the current range of ten-inch tablets accounts for more than 15 percent of the company’s profits.

Apple will hold a 68 percent share of the market by the end of 2012, compared to 29 percent for rival tablets that run on Android software. This year also sees the launch of Windows 8 which could challenge Apple’s dominance of the market.

Many feel that Apple is coming down the price chain to compete with Amazon’s Kindle and Google's Nexus 7. It is also rivalled by the Samsung Galaxy which is a similar size.

Adam Leach, principal analyst at Ovum, said he expected the smaller iPad to be more competitively priced. "We got a mix of a bit of new Apple and bit of old Apple in the same announcement," he said in an interview "This is new for Apple to be responding to competitors instead of pioneering their own way. It's old Apple as they've gone into this market with a premium pricing strategy”.

The new mini iPad is priced at US$329 for a Wi-Fi only model. Apple CEO Tim Cook and marketing chief Phil Schiller showed off the new tablet. Schiller compared the new iPad with Google's seven-inch Nexus 7 tablet, citing feature-by-feature why the new Apple device was superior. It is unusual for Apple to single out a specific competitor in its product launches. 

“Apple’s device is approximately US$150 more expensive than the Kindle and the Nexus but crucially Apple lack the extra advertising revenue of both Amazon and Google so must rely on hardware sales for their profit” said Destination Wealth Management CEO Michael Yoshikami.

Apple also announced a fourth-generation, full-sized iPad. The latest tablet, which sells for US$499, is faster and slimmer than the current range and comes just days before Microsoft is due to show off its own Surface tablet. Other announcements included a13-inch retina display MacBook Pro.

California-based Apple dominates the tablet market, which it essentially invented.

Steve Jobs, Apple’s late founder, once famously mocked the seven-inch tablet, saying it was too big to compete with smart phones and too small to compete with other tablets, but he reportedly warmed to the concept before his death. The new iPad is likely the first new Apple product that was developed after his death.

Apple shares fell US$20.67, or 3.3 percent, to US$613.36 after the price of the new tablet was announced. Shares in rival tablet makers rose: Barnes & Noble jumped 88 cents, or 6.1 percent, to US$15.32. Shares in Amazon.com, which makes the Kindle, rose 53 cents, or 0.2 percent, to US$234.31.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
The truth about social media growth

The truth about social media growth

If you needed proof that social media is one of the most effective...

1
Top 10 Ramadan Apps

Top 10 Ramadan Apps

Salma Awwad picks out the best apps in the market

Top 10 apps to download in Dubai

Top 10 apps to download in Dubai

Arabian Business lists the most essential mobile applications...

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams