NEWS ANALYSIS: Apple is reportedly planning to launch a 7-inch iPad, perhaps before the end of this year. When it does, the device will take out the Kindle Fire, which has already experienced slowing sales since it was released late in 2011. A 7-inch iPad might be the coup-de-grace for the Amazon tablet.
All of the latest rumors surrounding Apple's iPad suggest that the company
is currently working on a secretive new version of the device that would come
with a 7-inch screen. Apple is hoping to get the device onto store shelves by late
summer or early fall, according to reports, and will focus the tablet directly
at Amazon's Kindle Fire.
Even
the idea that Apple might be thinking about the Kindle Fire underscores the
impact that device has made in the tablet space. When it came on the scene late
last year with its $199 price tag and 7-inch display, many thought it was going
to fall short in the shadow of Apple's high-end iPad. But before long, the
Kindle Fire saw sales soar during the 2011 holiday season and although sales
slowed in the 2012 first quarter, it's still one of the more popular iPad
alternatives on the market.
Considering how important the tablet space is to Apple, however, one cannot
expect the company to accept any substantial challenge from the Kindle Fire.
Quite the contrary, there's a good chance that Apple wants to take it down. And
with a 7-inch iPad, there's an even better chance that it'll achieve that goal.
Read on to
find out why a 7-inch iPad will simply demolish the Amazon Kindle Fire:
1. It's Apple, isn't it?
First things first: If it's an Apple product, there's a very good chance it'll
be successful. And if the device is successful, it'll start cannibalizing sales
of other devices, including the Kindle Fire. Unless Amazon can find a way to
respond to the smaller iPad with something even better, Apple's new slate will
succeed simply because it comes from Apple.
2. Pricing matters
According to the latest reports, Apple will price its small iPad at a price
that's far closer to the $199 Amazon is selling its Kindle Fire for. The
smaller iPad could come in at about $250 or $300, which, while more expensive
than Amazon's option, puts it close enough for most consumers to choose Apple's
slate rather than Amazon's.
3. Most consumers want iOS
Unfortunately for Amazon, its tablet is running a heavily modified version
of Android. And although Android is wildly popular in the smartphone market, in
the tablet space, it has been largely an also ran. Apple's new slate,
meanwhile, will be running iOS, which has proved very effective on the iPad.
4. The Kindle Fire is about services
Amazon's decision to launch the Kindle Fire last year seems to have had more
to do with its own services than about beating Apple's iPad. The device is
built around the idea that users can access its Kindle marketplace, Amazon
Cloud, Amazon Prime and countless other services. For Apple, however,
it's all about dominating hardware first. That different focus might hurt
the Kindle Fire when it goes up against the smaller iPad.
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