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Apple, Facing Competition, Introduces a Smaller iPad Apple, Facing Competition, Introduces a Smaller iPad
(about 4 hours later)
SAN JOSE, Calif. — Steve Jobs once derided tablets with smaller screens, saying they would need to include sandpaper so people could sand down their fingertips to use them. But that didn’t stop his company from shrinking the iPad. SAN JOSE, Calif. — Steve Jobs once mocked tablets with small screens, saying they would need to come with sandpaper so people could sand down their fingertips to use them. But that didn’t stop his company from shrinking the iPad.
Unveiled Tuesday, Apple’s new iPad Mini is smaller and lighter than its predecessor. Its screen is 7.9 diagonal inches, making its surface area significantly smaller than the current 9.7-inch iPad. It weighs about two-thirds of a pound. Apple’s iPad Mini, which it unveiled at a press event here on Tuesday, weighs about two-thirds of a pound and has a screen that measures 7.9 inches diagonally, making its surface area significantly smaller than that of the 9.7-inch iPad. Philip W. Schiller, Apple’s vice president for marketing, said the smaller, lighter tablet would be a good fit for people who want something more portable than the 1.44-pound iPad.
The company is selling the lowest priced Mini for $330, about $130 more than similarly sized tablets from competitors. The company is selling the lowest price Mini for $330, about $130 more than similar-size tablets from competitors.
Apple also introduced an upgrade for its iPad, which includes a faster processor and the new Lightning connector. It also showed new laptop and desktop computers. Phil Schiller, Apple’s vice president for marketing, said the smaller, lighter tablet would be a good fit for people who want something more portable than the 1.44 pound iPad. Apple also introduced an upgrade for its larger iPad, adding a faster processor and the Lightning connector that first appeared in the iPhone 5, and it showed new laptop and desktop computers.
“The iPad is the top-selling tablet in the world, but we’re not taking our foot off the gas,” said Tim Cook, Apple’s chief executive, at a press conference here. The introduction of a smaller iPad is a bit of a shift for the company. In a call with investors, Mr. Jobs once said 7-inch tablets from competitors like Samsung and Research In Motion were “tweeners” that were too big to compete with a smartphone and too small to compete with an iPad. The new iPad Mini is slightly larger than 7 inches, but can still fall into that category. “The iPad is the top-selling tablet in the world, but we’re not taking our foot off the gas,” Timothy D. Cook, Apple’s chief executive, said at the event.
But with all the action in the technology market, smaller tablets have become impossible to ignore. Google, Apple’s fiercest competitor, recently released its 7-inch Nexus 7 tablet for $200. And Amazon recently introduced seven new Kindles, including a 7-inch tablet for $160 and an 8.9-inch tablet for $300. Barnes and Noble’s Nook tablet, which starts at $200, has also sold well. Combined, the three companies have sold about 15 million of these smaller, cheaper tablets, according to estimates by Forrester. The smaller iPad is a bit of a shift for the company. Mr. Jobs once said in a call with investors that 7-inch tablets from competitors like Samsung and Research in Motion were “tweeners” that were too big to compete with a smartphone and too small to compete with an iPad.
Apple recognizes it now has more real competition. At the event, Mr. Schiller actually did a side-by-side comparison of the Mini to a Google Nexus 7 tablet. He said that other companies had tried to make smaller tablets, but that they were inadequate. He noted that the iPad Mini was thinner, lighter and more durable than Google’s tablet, and still had a bigger screen. But with all the action in the tablet market lately, smaller models have become impossible to ignore. Google, Apple’s fiercest competitor, recently released its 7-inch Nexus 7 tablet for $200. Amazon recently introduced seven new Kindles, including a 7-inch tablet for $160 and an 8.9-inch tablet for $300. Barnes & Noble’s Nook tablet, which starts at $200, has also sold well. Combined, the three companies have sold about 15 million of these smaller, cheaper tablets, according to estimates by Forrester Research.
“Others have tried to make tablets smaller than the iPad but they’ve failed miserably,” Mr. Schiller said at the press conference here while showing screenshots of apps running on the Nexus 7 and iPad Mini side by side. Apple recognizes that it has competition. At the news conference, Mr. Schiller made a side-by-side comparison of the iPad Mini and a Google Nexus 7. He said the Mini was thinner, lighter and more durable than Google’s tablet, and still had a bigger screen.
Apple still dominates the market with 100 million iPads sold to date. But that could have been 15 million more tablets if it had had a smaller, cheaper version of the iPad on the market earlier, said Sarah Rotman Epps, a Forrester analyst. “Others have tried to make tablets smaller than the iPad, but they’ve failed miserably,” Mr. Schiller said while showing images of apps running on the Nexus 7 and the iPad Mini. He noted that the iPad Mini had access to Apple’s catalog of 275,000 apps that have already been made for iPads. Most of the 500,000 apps in Google’s Android app store are designed for phones, not tablets.
“Rather than cede the low end of the market to Amazon and Google, they’d prefer to take it themselves,” she said. “Apple is smart to be acting before it gets to be more of a problem.” Apple still dominates the tablet market; it announced that it had sold 100 million iPads to date. But it might have sold 15 million more if it had put a smaller, cheaper version on the market earlier, said Sarah Rotman Epps, a Forrester analyst.
Ms. Rotman Epps said that the smaller, cheaper iPad could broaden its appeal to women, because it can more easily fit into a purse. And it would probably also have better luck in less wealthy countries like China, where iPad demand has been slow compared to cheaper Android tablets. “Rather than cede the low end of the market to Amazon and Google, they’d prefer to take it themselves,” Ms. Rotman Epps said. “Apple is smart to be acting before it gets to be more of a problem.”
The insides of the iPad Mini are on par with Apple’s other mobile devices: It includes a new processor called the A5, the Lightning connector and a 5-megapixel camera. The smaller tablet does not, however, have the high-resolution Retina display of its bigger counterpart, presumably to keep it thinner and lighter. Ms. Rotman Epps said the iPad Mini could appeal to women because it can more easily fit in a purse. It may also have better luck than the larger, more expensive iPad in developing countries like China, where iPad demand has been low compared with demand for cheaper Android tablets.
Apple also introduced a family of new Macs, including upgrades for the MacBook Pro, iMac and Mac Mini. The 13-inch MacBook Pro notebook now includes a high-resolution Retina display, similar to the display technology on the current iPads and iPhones. Mr. Schiller said the screen on the new notebook had twice the pixels of a high-definition television. The iMac is 80 percent thinner and 8 pounds lighter than its predecessor. The iPad Mini’s components are on par with those of Apple’s other mobile devices: it includes the Lightning connector and a five-megapixel camera. The smaller tablet does not, however, have the high-resolution Retina display of its bigger counterpart, presumably to keep it thinner and lighter. The new iPads will begin shipping Nov. 2, and the version with a cellular connection will ship two weeks later.
The new iPads will begin shipping Nov. 2, and two weeks later the version with a cellular connection will ship. Apple also introduced a family of new Macs on Tuesday, including upgrades for the MacBook Pro, iMac and Mac Mini. The 13-inch MacBook Pro notebook now includes a Retina display, which Mr. Schiller said had twice as many pixels as a high-definition television. The iMac is 80 percent thinner and eight pounds lighter than the previous model.
The larger fourth-generation iPad comes about seven months after Apple introduced the last version — an unusual move, as the company has traditionally waited a year before upgrading products. But this timing allows Apple to market its tablets during the holiday season.
Apple’s stock dropped 3.3 percent to close at $613.36. Shaw Wu, an analyst with Sterne Agee, said investors were mostly disappointed by the iPad Mini’s price, as some had hoped it would be closer to the prices of Google’s and Amazon’s tablets.
But Mr. Wu noted that in general, Apple does not try to drive its products down to the lowest price, possibly sacrificing quality. Unlike Amazon and Google, Apple is driven by profits from hardware sales, not content, so Mr. Wu said he expected the iPad Mini to generate solid margins.
“It’s like Mercedes and BMW,” he said. “Will they go lower than Honda or Toyota? Probably not.” He added that Apple’s strength was its universe of apps, books and music, and that neither Google nor Amazon had all of those bases covered.