Mar 01

ASUS Will Build Google Nexus Tablet to Rival ...

The ASUS MeMo 370T was a hot product at the CES show, which took place this January in Las Vegas. The smaller 7 inch tablet running Android 4.0 ICS was possibly overlooked, however, as many turned their heads to the ASUS Transformer Prime and the news of the PadFone dropping a few weeks after, at MWC 2012.

Around the same time, rumors started spilling over the Internet that Google was, in fact, looking to partner with a current Android manufacturer who would build a Google branded ‘Nexus’ tablet. Google has recognized that they have a similar ecosystem to what Amazon has, with consumer services such as Google Play, Google Music, YouTube, Google Apps and Google Books. They also have one more thing than Amazon… they own Android, which holds the highest percentage of mobile subscribers worldwide.

Google saw what Amazon did with the Kindle Fire, with their ecosystem deeply integrated and priced at a spot that people liked. In reply, they are releasing a Google Nexus tablet, and have chosen ASUS to build it, given their successful launch of Android tablets as of the last few months.

The main goal here is to launch a speedy 7 inch tablet while keeping the price down under $250. The Nook Tablet runs for $249, while the Amazon Kindle Fire is $199. Apple just recently dropped the price of their older inventory as well, with the iPad at $299 for a 16GB Wi-Fi, and the iPad 2 16GB Wi-Fi model for $349 (both refurbished models).

ASUS has gone on record, stating that they have a close relationship with Google, and as such will be one of the first to launch the next major Android version 5.0 “Jelly Bean”. Digitimes is going on record stating that the ASUS MeMo 370T will be the tablet rebranded as the Google Nexus tablet, and we’ll see it in May. Google launched a somewhat ‘branded’ Samsung 10inch Galaxy Tab at last years’ Google I/O event, which takes place again this June.

With these stories circulating, there’s no doubt that we’ll see ASUS making the ‘Google Nexus Tab’.

Source – Digitimes, androidandme

 

I’m a technology nerd who loves to keep up with anything related to technology. I used to build lego and models for a past time, until lego got too expensive and models just didn’t do anything besides sit and collect dust. …

Reed Sanders’s author pageAuthor’s Blog

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Aug 30

Sony testing Android Jelly Bean for older Xperia ...

Sony Mobile is denying reports it has decided against upgrading smartphones including the Xperia Arc S and Xperia Mini Pro to run Google's (NASDAQ:GOOG) new Android 4.1 operating system (a.k.a. Jelly Bean), stating it is exploring updates for all devices in its portfolio.

"We are actively investigating Android OS upgrades for all devices, but in the meantime, our [Android 4.0] Ice Cream Sandwich rollout for Xperia S and 2011 Xperia smartphones continues as planned," reads a post on the Sony Xperia Product Blog. Sony added it will release new details on its Ice Cream Sandwich upgrade schedule in the weeks ahead.

Sony clarifed its Jelly Bean plans in response to comments made late last week by a spokesperson participating in a Q&a session on the Sony Mobile GB Facebook page. "unfortunately Arc S won't be getting the Jelly Bean update, but we're always developing new phones and making sure they get the latest updates," the spokesperson said, subsequently adding "the Xperia Mini Pro won't be getting Jelly Bean."

Sony reports the Xperia Arc (pictured) and other Xperia devices will get Android 4.1.

The Facebook Q&a fueled speculation that Sony does not plan to migrate any of its 2011 Xperia devices to the latest Android iteration. Not so, Sony explained: "[The] local spokesperson gave information out in error on our Android 4.1 Jelly Bean software development and rollout for 2011 Xperia smartphones."

Android Jelly Bean, unveiled in late June during Google's annual I/O developer conference, promises a smoother and more responsive UI across the system, highlighted by triple buffering in the graphics pipeline for more consistent rendering as well as synchronized touch to reduce latency. Jelly Bean also brings a revamped homescreen that automatically adapts to fit content along with Google Now, which includes personalized information like local weather and traffic updates. 

Google kicked off the Android Jelly Bean rollout earlier this month when it pushed the update to Samsung Electronics' Galaxy Nexus smartphone. Google vows all Galaxy Nexus handsets will receive the update in the near future. also in line to upgrade: Samsung's Nexus S and Motorola Xoom as well as the Nexus 7 tablet, jointly developed by Google and Asus, which ships with Jelly Bean pre-installed.

Although most manufacturers have remained mum on their Android Jelly Bean plans, HTC has confirmed it will upgrade its One X, One XL and One S devices, including carrier versions of the One X and One S offered to U.S. subscribers via AT&T Mobility (NYSE:T) and T-Mobile USA.

For more: – read this Sony Xperia Product Blog entry – read this Inquirer article

Related articles: HTC confirms Android Jelly Bean update rollout Google rolls out Android Jelly Bean to AT&T, T-Mobile Galaxy Nexus smartphones Google releases Android Jelly Bean source code Samsung confirms Android Jelly Bean updates, rivals still non-committal Adobe kills Flash support for Android with Jelly Bean update Android Jelly Bean launch brings Google Play expansion

Sony testing Android Jelly Bean for older Xperia smartphones

Aug 28

Acer Iconia Tab A110 priced in the UK at £179, to ...

We all know that any piece of technology is nothing without good marketing, which is why we’re pretty upset to see how Acer is choosing to (not) advertise its upcoming Iconia Tab A110 tablet.

Secretively unveiled back in June at Computex Taipei, the 7-incher looked like a winner to us, both in terms of raw power and pricing. it was pretty obvious that this little guy was capable enough to take on Amazon’s Kindle Fire, which basically changed the way we look at tablets.

In the meantime, Google unleashed the Nexus 7, so 7-inch tablet competition grew ever stronger, but the few of us that remembered the A110 still felt like this could be a gadget to look for. Unfortunately, we heard nothing about it ever since its unveiling.

Although we still have nothing official to report on the “Nexus 7 killer”, a rumor has surfaced online regarding the new tab’s release date and pricing. According to stuff.tv, the A110 will go up for sale in the UK at the end of September for £179 (the 8 GB version).

There’s no mention about a possible US launch in this fresh new report, but we’re willing to bet the 7-incher won’t take long to hit the States. As for pricing, we hope to see the tab selling for as less as $179, but we admit that a $199 tag won’t make it undesirable either.

Meanwhile, the Acer Iconia Tab A110 has popped up on Ebuyer.com, the official website of the largest independent online retailer of electrical goods in the UK. the tab is, of course, listed as “out of stock” with no mention of an ETA, so this is most likely the work of a zealous worker who wanted a shortcut to a favorable Google search position.

The amusing part at Ebuyer’s listing is the gadget’s spec sheet, where the A110 is mentioned as coming with “Android Ice Cream Sandwich 4.1” out of the box. This also stinks of SEO optimization from a mile, although it could only be an innocent spelling error. or, but this is a very long shot, the 7-incher might actually be running Android 4.1 Jelly Bean upon its release, and not ICS.

If you’ve missed the A110’s introduction from June (and you most likely did), here’s the tab’s full spec sheet:

So what do you Android enthusiasts think? could Acer give Amazon and Google a run for their money? And does this 7-incher stand a chance without a heavy marketing campaign behind it?

Acer Iconia Tab A110 priced in the UK at £179, to be released in late September

Aug 26

Samsung Might Have To Delay New Phone And Tablet ...

Steve Kovach, Business Insider

Aug. 25 (Bloomberg) — Samsung Electronics co. may need to delay introducing new mobile devices so it can make design changes after a U.S. jury ruled that the world’s top maker of smartphones infringed Apple Inc. patents.

Apple yesterday won a $1 billion judgment that may also halt U.S. sales of Samsung’s mobile products. The companies return to court next month for a hearing on Apple’s request for a permanent ban on devices including Samsung’s Galaxy Tab 10.1.

Samsung vaulted to the top of a global smartphone market valued at $219 billion by Bloomberg Industries by introducing a variety of Galaxy models using Google Inc.’s Android software and gaining share over Apple’s more-limited product range. The Suwon, South Korea-based company may have to rush to change products under development, leading to delays as it seeks to widen its lead.

“Samsung will have to change some products in its pipeline,” Chang in Whan, president of Seoul-based KTB Asset Management co., which oversees the equivalent of $5.8 billion, said by phone today. “there could be delays in developing and releasing new models at a time when products are coming out every six months.”

Samsung’s schedules for debuting new products won’t be affected by the verdict, James Chung, a Seoul-based spokesman for the company, said today by phone.

Galaxy Note

Samsung has gotten around other sales bans by modifying some features of its products. The company last year changed the frame of a Galaxy tab model and the location of speakers after Apple won an injunction banning its sales in Germany.

The global lineup for the rest of this year includes the next version of the Galaxy Note, which sold more than 10 million units in less than a year. The company began selling a tablet edition of the Note this month, following the May release of the Galaxy S III, the newest version in its bestselling smartphone series.

Samsung — the largest maker of computer-memory chips, flat-screen panels and TVs — plans to spend 25 trillion won ($22 billion) this year in capital expenditure to boost manufacturing capacity, including 15 trillion won for chips and 6.6 trillion won for flat-screen panels used in smartphones, tablet computers and televisions.

“Samsung has deep pockets and they are going to change some designs up,” said Michael Risch, a patent law professor at Villanova University in Pennsylvania. “Not being able to copy may make them do better things than Apple.”

HTC Devices

The verdict may affect other makers of Android-based devices. Apple has sued other smartphone makers, including HTC Corp., the world’s fourth-largest smartphone maker that generated $15.8 billion in revenue last year mostly from selling phones such as Desire and Sensation.

“HTC would need to look very closely at the patents in question with Apple and see which may be similar to those with the Samsung case,” said Marcus Clinch, an intellectual property lawyer at Eiger Law in Taipei who is not involved in any of the cases. “having Samsung’s products banned in the U.S. may be a bigger danger to HTC than the damages award because of the precedent it sets for the industry.”

Two of the patents in the case brought by Apple against Samsung are also part of the iPhone maker’s case targeting more than a dozen HTC devices before the International Trade Commission. HTC declined to comment in an e-mailed response to queries.

Android Issues

“this is an issue for the whole Android camp, not just for Samsung,” Seo Won Seok, a Seoul-based analyst at Korea Investment & Securities co., said by phone.

Apple, based in Cupertino, California, won less than half the damages it sought from the first U.S. jury verdict in the fight to dominate the global smartphone market, though U.S. District Judge Lucy Koh, who presided over the four-week trial in San Jose, California, could later triple the damages under federal law. Samsung avoided a finding of damages for antitrust violations or breach of contract.

Samsung will ask the judge to overturn the verdict and, if she doesn’t, will appeal the case, Mira Jang, a spokeswoman for Samsung, said in an e-mail.

The “verdict should not be viewed as a win for Apple, but as a loss for the American consumer,” Samsung said in a separate e-mailed statement. “It is unfortunate that patent law can be manipulated to give one company a monopoly over rectangles with rounded corners, or technology that is being improved every day by Samsung and other companies.

‘Investor Uncertainty’

Apple is Samsung’s largest customer, even as they compete selling phones that allow users to surf the Web and play games, and fight in courts on four continents over patent infringement claims. Apple accounts for about 9 percent of Samsung’s revenue, making it the company’s largest customer, according to data compiled by Bloomberg.

Koh set a hearing for Sept. 20 on Apple’s request to bar U.S. sales of Samsung products. She ordered Apple to file a one- page chart by Aug. 27 identifying which devices it seeks to ban.

Samsung shares have gained almost 21 percent this year, trailing a 64 percent jump in Apple stock.

“a final decision would’ve been less burdensome,” Heo Pil Seok, chief executive officer at Seoul-based Midas International Asset Management Ltd., which oversees $5 billion, said by phone today. “It’ll take some time for an actual sales ban to take effect, and Samsung will appeal, making it a long-term fight.

“this will be an uncertainty for Samsung, and investors hate uncertainty the most,” he said.

–With assistance from Tim Culpan in Taipei and Joel Rosenblatt in San Jose, California. Editors: Jim McDonald, Michael Tighe

To contact the reporter on this story: Jun Yang in Seoul at jyang180@bloomberg.net; Saeromi Shin in Seoul at sshin15@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net

Samsung Might Have To Delay New Phone And Tablet Launches After Losing To Apple

Aug 26

Google cutting 4,000 jobs at Motorola unit ...

Enlarge

In this Feb. 2, 2011 file photo, a Motorola Mobility Xoom tablet is shown at Google headquarters in Mountain View, Calif. On Monday, Aug. 13, 2012, Google announced it is cutting about 4,000 jobs at its Motorola Mobility cellphone business and will close or consolidate about one-third of its 90 locations. (AP Photo/Paul Sakuma)

(AP) — Google inc. is making its largest round of layoffs ever as it announced plans to cut about 4,000 jobs at Motorola Mobility just three months after buying the struggling cellphone pioneer.

The move isn’t surprising given years of plummeting sales at Motorola, but it signals that Google doesn’t intend to drag Motorola along as a money-losing venture.

After the announcement, Google’s stock rose $18.01, or 2.8 percent, to close Monday at $660.01.

The reductions represent about 20 percent of Motorola Mobility’s 20,000 employees and 7 percent of Google’s overall work force. Google says two-third of the job cuts will take place outside of the U.S.

Google, which has been growing for more than a decade, doesn’t have a history of mass layoffs. in previous rounds of layoffs, Google at most had cut a few hundred workers.

Motorola, however, cut thousands of jobs in recent years as its cellphone division saw sales plummet. Although it pioneered the U.S. cellphone industry in the 1980s, it hasn’t produced a mass-market hit since it introduced the Razr cellphone in 2004. Once the second-largest phone maker in the world, Motorola no longer ranks in the top 5.

Motorola now makes phones that run on Google’s Android operating software, but rivals such as Samsung Electronics Co. have been more successful at it.

Motorola split into two in early 2011. Google snapped up Motorola Mobility, the half that makes cellphones and cable set-top boxes, for $12.4 billion. Motorola Solutions, which makes police scanners and other professional products, remains a separate company.

The Motorola deal is Google’s largest acquisition ever and plunges it into the business of consumer products. It puts Google in a position of competing with the same companies it considers partners.

Google has pledged to keep the Motorola hardware business separate from its Android software division and promised to treat Motorola like an outside company. It turned to AsusTek Computer inc. rather than its own division to make a Google-branded tablet computer called Nexus 7.

Google’s chief goal in buying Motorola was to use its large patent portfolio to bolster its legal defenses.

Apple has been suing Samsung, Motorola and other makers of Android smartphones, saying they copied the iPhone. By acquiring Motorola’s patents and transferring them to Android phone makers such as HTC Corp., Google can bolster their legal defenses and set them up to counter-sue Apple.

Morgan Stanley analyst Scott Devitt wrote in a morning report, before Google’s announcement, that he believes Google is limiting its ambitions for Motorola Mobility, a strategy he believes to be good for investors. Devitt expects Google to curtail Motorola to producing just a few smartphone designs per year and perhaps some tablets as well.

Before the acquisition, Motorola had been trying to turn itself around by focusing on smartphones, which have higher profit margins than regular cellphones. in the first quarter, Motorola sold 5.1 million smartphones and 3.7 million “dumb” phones. the cuts announced Monday will shift the company toward smartphones even further.

The migration toward smartphones has slowed Motorola’s decline, but it has still lost money in 14 out of the past 16 quarters.

Google said in a filing with the Securities and Exchange Commission that the latest cuts are intended to make the business profitable. But the company warned that investors should expect revenue to fluctuate over the next few quarters, and sales will drop before the cost savings take effect.

Severance payments will cost Google about $275 million, which will largely be charged in the current quarter. the company also expects to book an unspecified amount in restructuring charges, mostly in the quarter.

Google also said it will close or consolidate about one-third of its 90 locations.

Motorola announced in June that it would move its headquarters from the Chicago suburb of Libertyville to downtown Chicago.

Copyright 2012 the Associated Press. all rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Google cutting 4,000 jobs at Motorola unit (Update)

Aug 24

Acer Iconia Tab A510 10in Android review • Reg ...

In my view, the 16GB Google Nexus 7 is pretty much the ideal Android tablet, but if that form factor is too small for you, then you might be interested in what Acer has cooked up lately. Say hello then to the Iconia Tab A510. Targeted at those who want a quad-core machine, it offers a 10.1in screen, 32GB of storage and for a reasonable price – around £320 if you look hard enough.

Acer Iconia Tab A510 10in Android tablet

Tegra 3 tablet: Acer’s Iconia Tab A510

Externally Acer could have been a little more adventurous with the design. As it is the A510 looks very similar to the Tegra 2-based A500. At over 10mm thick and weighing 680g it’s not particularly slender or light but the dimpled back makes it comfortable to hold and it feels very solid.

With tablets now looming on the horizon with 1080p screen resolutions the A510’s 1280 x 800 panel may seem a bit old-fashioned and the pixel density of 140ppi can’t match the Nexus 7’s 216ppi. Still, it looks perfectly crisp and clear to my eyes and the dpi number is better than the similarly priced 16GB iPad 2′s figure of 132ppi.

Acer Iconia Tab A510 10in Android tablet

Olympic fondleslab, anyone?

Of course, the A510 can still play 1080p video with perfect ease and throw a full-HD feed out over its micro HDMI port. the 5MP camera at the back is nothing special but it can at least record 1080p video while the 1MP webcam works a treat with Skype and can record video at 720p.

The screen itself is a simple TFT LCD panel rather than an AMOLED or IPS affair. this means it’s not quite as bright or vivid as some of the opposition, nor does it support such wide viewing angles. but again, to get a better screen you need to spend more money and frankly if you are planning on using your tablet predominantly indoors and on your own the A510 is more than adequate.

Acer Iconia Tab A510 10in Android tablet

Next page: Making connections

Acer Iconia Tab A510 10in Android review • Reg Hardware

Aug 24

Google Play $25 Credit Amps Android Downloads

Owners of Google’s recently released Nexus 7 are cashing in the $25 Google Play store credit that comes with the device and, as a result, downloads of some Android apps are taking off.

The offline reading app, Instapaper for Android, is one example. since the day people starting getting their awesome 7-inch tablets, the app has seen a 600 percent jump in downloads at the Google Play store.

According to TheNextWeb, before the Nexus 7 hit the scene, Samsung devices were responsible for the lions share of Instapaper for Android downloads, in this order: Galaxy Nexus, Galaxy Note, and the Galaxy Tab 10.1. and even though its only been shipping for a couple of weeks, already the Nexus 7 has beaten the number of downloads to thoseand otherdevices.

Youd expect people to throw down a few dollars for Instapaper for Androidits a fantastic app priced at only $3 at the Google Play store. Too cheap to pay for in-flight Internet service? While you wait to board, Instapaper for Android lets you save copies of all the interesting news stories you want to read; you can then pull them up on your device once youre in the air without a signal.

But can the Nexus 7 supercharge the Android market? If Google keeps giving out those free $25 Play credits, it most likely can.

Usually I dont buy paid apps unless its a requirement for a review, and certainly I am one of plenty of like-minded cheapskates. If more people start downloading paid apps because of Googles promotion, developers will have more incentive to stick with Android for paid apps instead of favoring the Apple ecosystem.

Other apps are benefiting from the enormous popularity of the Nexus 7, as well. the developer of Pocket Casts recently tweeted that that sales of its Android  apps had doubled, coinciding with Nexus 7 sales and the free money their owners can spend at the Play store.

Again, its a highly-rated app and a superior way to keep current with all your favorite podcasts because its server monitors your feeds so your phone doesnt have to.

Even so, neither Instapaper for Android nor Pocket Casts is in Google Plays list of top ten paid apps. those leaders are:

  • Beautiful Widgets ($2.79)
  • Angry Birds Space Premium (99 cents)
  • Where’s my Water? (99 cents)
  • World of Goo ($4.99)
  • Shazam Encore ($5.59)
  • SwiftKey 3 Keyboard ($3.99)
  • Draw something ($2.99)
  • Minecraft, Pocket Edition ($6.99)
  • Titanium Backup PRO Key root ($6.58)
  • Smart Tools ($2.50)

People certainly are paying for games and while lots of folks love the Nexus 7 for gaming, others have found some issues, particularly with downloading them.

But for consuming content, such as articles you get with Instapaper for Android or podcasts from Pocket Casts, the Nexus 7 undeniably shines.

Not sure which apps to buy for your Nexus 7? Check out this TechHive story, which recommends several superb choices.

Follow Christina on Twitter and Google+ for even more tech news and commentary and follow Today@PCWorld on Twitter, too.

Google Play $25 Credit Amps Android Downloads

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Aug 23

64GB Blackberry Playbook is down to just £129

YES, YOU READ THAT RIGHT, UK retailer Currys is flogging the 64GB Blackberry Playbook for a mere £129.00, cheaper than the 32GB model.

Over on the Currys website, the top of the line 64GB Blackberry Playbook can now be ordered for just £129. That’s £120 less than the tablet’s in-store price of £249, and bizarrely, £20 cheaper than the smaller storage 32GB model.

We’re not yet sure whether this is a mistake or a move by the retailer to try to shift the lacklustre Blackberry tablet. However, The INQUIRER has taken advantage of the offer and ordered the bargain priced tablet, and has been told that the retailer is preparing to ship the order, so grab the bargain while you can.

It might not have sold well, but £129 for the Blackberry Playbook is simply a ridiculous price. for that price you’re getting 48GB more storage than is offered by the similarly low priced Google Nexus 7, as well as a decent 7in 600×1024 touchscreen and a dual-core processor.

Research in Motion’s debut tablet also features the firm’s business focused QNX operating system, a 5MP rear-facing camera, a 3MP video-calling camera, WiFi connectivity and a 5300mAh battery.

Currys was unavailable for comment at the time of publication. µ

64GB Blackberry Playbook is down to just £129

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Aug 23

Lenovo releases ICS upgrade for Ideapad K1

PC and mobile equipment manufacturer, Lenovo has finally announced the roll out of the Android Ice Cream Sandwich for its IdeaPad K1 tablet.

Lenovo had launched the 10 inch tablet based on Google’s Android Honeycomb 3.0 operating system last year. But following the launch Lenovo has been very slow regarding the upgrades for the device. although it was expected that Lenovo will be announcing the upgrade sometime earlier this year, the company has been delayed in the release of the Android Ice Cream Sandwich upgrade for the IdeaPad K1.

The ICS upgrade has now been made available for the IdeaPad K1 through the Lenovo forums and is available for customers who only wish to upgrade their devices and is not mandatory for anyone.

“Lenovo is providing a basic non-customised, region-independent release of Android 4.03 aka Ice Cream Sandwich for customers who wish to install this OS on their IdeaPad K1 Tablet systems,” Lenovo wrote in a blog post.

This release differs from the factory-installed Honeycomb 3.1 release and subsequent OTA (Over the Air) updates to Honeycomb 3.2, and it does not include Lenovo customisations such as the launcher, pre-installed apps or an app store, nor the underlying framework.

IdeaPad K1 features a 1280 x 800 pixel display and is powered by 1 GHz Nvidia Tegra 2 dual core processor and 1 GB of RAM. the tablet features both front and rear cameras and along with WiFi-only connectivity.

This release is not recommended for the casual or mainstream user who is unfamiliar with the Android OS and customisation process. the source code, which may be of additional value to the developer community, will be made available shortly. Further to this OTA updates are not planned for release on the Lenovo K1 IdeaPad tablet. the upgrade file and information can be accessed by following this link (http://download.lenovo.com/lenovo/content/sm/K1_WIFI3G_%20K1_A301_21_03_120607_ICS_Image.zip) to the Lenovo forums.

Lenovo releases ICS upgrade for Ideapad K1

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Aug 23

Apple iPad Mini – A Strategic Move

By Ashish Sharma – August 16, 2012 | Tickers: AMZN, AAPL, GOOG | 0 Comments

Ashish is a member of the Motley Fool Blog Network — entries represent the personal opinions of our bloggers and are not formally edited.

There have been continuous rumors of Apple (NASDAQ: AAPL) releasing its new iPad mini to compete in the 7” tablet market. recently a blog site iMore indicated that Apple will announce the iPad mini on September 12 following the information coming from sources that have “proven to be accurate in the past.” We believe that the launch (if happens!) will add to the future prospects of Apple and remain positive on the strategic implications going forward.

What:

The 7″ tablet market is currently dominated by Amazon’s (NASDAQ: AMZN) Kindle fire and Google’s (NASDAQ: GOOG) Nexus 7. We believe that Apple with its own offering of iPad mini might try to fill the product gap in this low pricing segment. There are speculations and rumors surrounding the market which suggest that Apple might be launching iPad mini with an A5 processor (same as that of iPad2) and 3G/4G connectivity option. We believe that the Apple iPad mini might come in 2 SKUs of lower capacities to help provide cannibalization of iPad which currently comes with capacity options of 16, 32 and 64 GB.

Why:

We believe that the launch of an iPad mini is more of a strategic move rather than a financial one by apple in wake of its recent conflicts with Google. while Apple iPad holds a dominant market share in the full size tablet segment due to its first mover advantage and powerful ecosystem, Apple is unable to tap the potential from the consumer demand in the smaller and less expensive tablet market. while the iPad is too expensive, iPod Touch lags functionality-wise and is too small to address reading needs. Apple with its entry into the lower price segment is trying to maintain its leadership position in the tablet market and prevent competitors from increasing their market share.

Strategic Implications:

1) This move could help Apple to expand its addressable market into the price sensitive segment with its more affordable pricing. We believe that in the long term this move can help Apple to expand into emerging markets like China and India, who might prefer Apple products with lower price points over Google and Amazon.

2) As Apple products have shown a higher level of stickiness with intent to repurchase, we believe that this move might increase up-sell opportunities for Apple.

3) Apple might generate higher revenues from the iTunes and App store with an increased user base.

4) An iPad mini launch might potentially help Apple, if Apple tries to enter into the payment business (As Google has tried with Google Wallet) as Apple gathers payment account info through iTunes and App Store.

5) Apple has been trying to gain traction in the education vertical with its low priced iPad2. We believe that iPad mini with its affordable costs might further help Apple expanding its footprints in the education vertical.

Financial Implications:

As far as the financial implications go we believe that iPad mini might not be such a revenue needle mover for Apple. if we assume that Apple iPad mini would sell 20 million units (considering that Apple iPad sold 20 million units in the first year) in year one at a price point of around $200, the revenues would come at around $4 billion or ~3% of total revenues excluding the cannibalization effects it would have on iPad sales. 

The bottom Line:

Apple, following its rivalry with Google, is trying to deny any standing to Google into its stronghold market. while the financial implications of the mini might be negligible for Apple, the release would open the way for several strategic growth alternatives for Apple in the long term. We believe that a launch of Apple mini might give investors another reason to buy Apple with the new Apple iPhone 5 release already acting as a potential catalyst for the stock in the near term.

Apple iPad Mini – A Strategic Move

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