Full-size iPad could soon be an over-sized, outdated piece of junk
Analyst predicts smaller tablets like the Google's Nexus 7 will soon dominate the market
Apple may have paved the way with tablets when its iPad first hit the market, but the company might not have put enough thought into the size of the thing. According to Citi analyst Glen Yeung, people want smaller tablets; slabs in the seven-inch range seem to be the current sweet spot. Cnet reports that Yeung noted Apple's 9.7-inch iPad has peaked and he believes that smaller versions like the 7.9-inch iPad mini and seven-inch Google Nexus 7 will take over from here on out.
Thankfully for Apple, it's already in on the action with its mini, and upcoming second-gen model -- but will that be enough? Yeung doesn't seem to think so. He also reportedly predicts that the company will take a hit to the wallet, due ot the iPad mini not generating as much in gross margins as its larger counterpart.
From Yeung's note:
“Beyond simply the overall share loss, the data reveals a particular slowdown in 10-inch iPad sales in mature markets and a clear downward trend in tablet ASPs (average selling prices). After analyzing the data, we have new concerns about the health of the 10-inch tablet market and, absent any material innovations (we do not count a Retina Mini or lighter/thinner iPad 5 among these), we remain concerned about Apple’s ability to maintain market share.”
That said, we're curious to see what Apple has in store next for its tablet lineup. From the rumors we've seen so far, it doesn't sound like much has changed. The Cupertino, Calif.-based company is expected to release a second-generation iPad mini and full-size iPad 5 sometime this year, but details remain sparse. The iPad mini 2 is expected to sport a retina display (the first one lacked it) and will hopefully run faster than the current version. The iPad 5 could be thinner and lighter, but that doesn't sound like much of a reason to cash in on an older model.