Apple Suppliers Begin Mass Production on Smaller Tablet
By LORRAINE LUK
TAIPEI—Apple Inc.'s AAPL +0.29% Asian component suppliers have started mass production of a new tablet computer smaller than the current iPad, people with knowledge of the situation said, as the Silicon Valley company tries to stay competitive against rivals such as Google Inc. GOOG -0.63% and Amazon.com Inc. AMZN -0.56% that are offering smaller, less-expensive alternatives to the iPad.
Two of the people said the smaller tablet will have a 7.85-inch liquid-crystal display with a lower resolution compared with the latest iPad model that came out in March.
South Korea's LG Display Co. 034220.SE +0.88% and Taiwan's AU Optronics Corp. 2409.TW -0.47% last month began mass production of the LCD screens for the new device, they said.
In August, technology blog website AllThingsD reported that Apple was planning to hold a special event in October to unveil the smaller tablet. AllThingsD is owned by News Corp., as is The Wall Street Journal.
The standard iPad's screen measures 9.7 inches, and that size hasn't changed since the first model was released in 2010.
Apple representatives in the U.S. and Beijing didn't immediately respond to requests to comment.
Apple's smaller tablet comes at a time competition is intensifying in the fast-growing market segment. Since the original iPad was released, competitors have released devices in various sizes, with various technical specifications and prices. In July, Google—already Apple's biggest software rival with its Android mobile-operating system—launched the Nexus 7, a tablet with a 7-inch screen that sells for $199. Last month, Amazon released the latest models of its Kindle Fire tablets, with the entry-level model priced at $159. Apple's newest iPad, released in March, starts at $499.
The crowded tablet market will face a big test when Apple introduces a tablet smaller than the iPad. The WSJ's Juro Osawa tells Deborah Kan what we can expect.
The Wall Street Journal reported in February that Apple was testing a smaller tablet. In July, people familiar with the matter told the Journal that Apple's suppliers were preparing to begin mass production of the smaller tablet in September.
Analysts said a smaller tablet could help Apple stay competitive in the increasingly crowded market. Christine Wang, analyst at Daiwa Capital Markets in Taipei, said that she expects a smaller Apple tablet to sell at lower prices than the current iPad. It would appeal to those consumers who find the iPad too heavy or too expensive, she said.
"Many people use the iPad to play games and watch videos, but they cannot hold it with one hand," said Ms. Wang.
Market-research firm IHS iSuppli has forecast that the global tablet sales will surge 85% this year to 126.6 million units. Last year, the iPad held a dominant share of roughly 60% of the global tablet market.
—Ian Sherr in San Francisco contributed to this article.
.
No comments:
Post a Comment