Apple is introducing Mini iPad is a news which must have send shivers in the board room of Microsoft, Google and Samsung. In last three weeks Google and Microsoft has introduced their Tablets in the market. Microsoft Surface sales and pricing is not available but Google latest entry in to the Tablet market Nexus 7 is available in the market.
Amazon Kindle-fire has 65% of the Android market share in US and priced at $199. Google Nexus is also priced at $199. Apple plan to introduce Mini iPad has been reported by The wall street journal Market Watch and Bloomberg . Market Watch source for this claim is Apple supply chain.
Apple has not confirmed the news and it is left to speculation. As per the reports Apple will start production’s in September and announcement of the Product may happen in October. Retina display will not be a part of Mini iPad and screen diagonal size will be between 7-8 inch.
If Apple is introducing Mini iPad then why?
Apple has already the winner in the iPad market then why they are introducing Mini iPad in the market which will compete with Google Nexus 7 and Amazon Kindle fire. Why Apple will compromise with their product in terms of the experience they are providing to customer.
Apple is not introducing Mini iPad to have a hardware war with Google and Microsoft because Apple has already won the hardware war. Apple iPhone 5 is coming and iPad third version went for sale in market. In terms of hardware there is no doubt that Apple has won. I think that Apple is introducing Mini iPad for three reason.
2. Competition: Amazon and Google has avoided any direct confrontation with Apple on hardware terms but they are seriously competing with Apple on the sale of applications and digital content. Apple is the most serious competitor of Amazon. Kindlefire was a must for Amazon because they want them-self as a platform available to people.
Amazon is loosing money on the sales of Kindlefire but they will make money through the sales which will happen through their store. Amazon is an online store. For Amazon rise of Smartphone and Tablets was a paradigm shift for their business model. Amazon seriously needed to shift their business model. Amazon online store sell’s physical product as well as digital content. For Amazon it was must that their store should be easily available to people and Kindlefire was introduced.
Apple is the strongest competitor of Amazon in digital content business like e-books, movies and songs. Amazon has defended their business model and market share through Kindlefire and prepared themself for Future.
Google Nexus 7- From Android to Nexus 7, each and every product Google has introduced is focused towards dominating, increasing and safeguarding their ad business model. Google has entered in to the market of selling digital content which is dominated by Apple and Amazon. Amazon and Apple are old player in the digital content market. Google is the latest and a very strong entrance in the market.
Profit Zone: Maximum articles represent iPad and iPhone as a hardware which is completely wrong. iPhone and iPad is a platform for a ecosystem which is iOS. Apple will sell a iPhone and iPad to a customer once in a year but they can sell digital content through iTune, App store, Poscasts, ebooks to that customer on daily basis. iOS is a market and its profit depends on how many people use it. The bigger the market bigger the profit.
Future: Keeping an eye on future is one the major reason Apple is introducing Mini iPad.
Apple introduction of Mini iPad will be focused on:
1. Creating a competitor for Amazon and Nexus 7 in their price range which will create a major hindrance for Google especially to capture the market share of digital content.
2. Apple Mini iPad will be Apple first serious effort to capture the emerging market of Tablets like India, Brazil.
3. Apple major focus will be capturing the market of digital content in lower Pyramid.
4. Apple brand as selling the amazing experience of integrated ecosystem of Hardware and Software will certainly leverage the value of Mini iPad in the eyes of customers.
One thing which will be an extremely important issue for industry analyst will be how much Mini iPad will impact the sale of iPad and Samsung tablets.
What is your views about Mini iPad?