With Apple's highly-anticipated "iPad Mini" event less than a day away -- tomorrow Oct. 23 -- analysts across the tech sphere are predicting a blowout against Microsoft's Oct. 25 event to debut its Windows 8 operating system and first tablet, the Surface - if the price is right.
Users May Expect Too Much from Microsoft Surface Tablet, Say Analysts
As ComputerWorld notes, while the timing of the iPad Mini announcement was rumored to have been delayed by manufacturing issues, there's another distinct possibility: calculated strategy. By pushing back the company's unveiling of the iPad Mini, just days before Microsoft is set to show off its new operating system, Windows 8, and its first ever tablet device, the Surface, Apple continues to control the tablet narrative, sending a clear message to competitors that says "We are the most successful technology company in the world, we have more resources than you, and we're prepared to bring anything to the table to compete. You are playing on our turf now," according to ComputerWorld.
Everyone seems to agree that Microsoft is the company with everything to lose this week. Apple, the big dog of the tablet market since its iPad burst onto the scene in 2010, has far less to prove. Case in point: The company hasn't even indicated what its enigmatic event tomorrow is for, or commented in the slightest about the much whispered about "iPad Mini," and everyone from tech journalists the world over to Android devotees have their gaze trained on Apple.
"Apple is uniquely positioned (brand, ecosystem, developer support, etc) to capitalize on the next wave of tablet adoption and capture the lion's share of industry profits," said Deutsche Bank's Chris Whitmore in an interview with Fortune.
"We believe the iPad mini will enable Apple to extend it competitive lead as Android remains fragmented, MSFT RT is not compatible with Windows 8 and PC OEMs haven't put forth an iPad killer," he continued.
Of course, much of the iPad Mini's success will depend on its price point. Microsoft, which priced its 32GB entry level Surface at $499, is betting a lot of its device's success on the fact that its consumers are already so enamored with a product they haven't used they'll pay anything the company asks them to for it. A dangerous gamble when you're the new kid on the block.
Apple's already made a name for itself in the tablet sphere and has far less to prove.
While many of the recent rumors -- like a report from 9to5Mac -- suggested a $329 price tag, analyst Mark Moskowitz thinks it could be much lower than that. "Our research indicates that the smaller size, absence of Retina display, and less storage capacity underpin the base model's potential price point of $249," he said.
A sentiment echoed by Whitmore who thinks that the tablet market will grow from about 20 million in 2010 to roughly 195 million by 2014, and believes Apple will aim squarely at an underserved price point between $250 and $350, according to Fortune.
"If Apple is able to price the iPad mini at ~$250, the product will be a barnburner; especially during this holiday season," Whitmore writes.
Sterne Agee analyst Shaw Wu thinks Apple's new smaller tablet will be a success no matter what.
"We do not believe Apple needs to price as low as $199 to match Google's Nexus 7 and Amazon's Kindle Fire HD," Wu theorizes. "[Rather, we] believe a price point of $299 or $349 makes sense with its entry-level iPod touch starting at $199 and iPad 2 at $399."
Wu continued, "The key question is whether Apple decides to price in-line with its margin model or does it get aggressive to 'go for the kill' against competitors. Regardless, we continue to believe iPad mini is the competition's worse nightmare."
Similarly, AllThingsD predicts price will matter, but if the flash is there, Apple likely won't have to undercut its competitors too much to still make a tremendous impact on the tablet market.
"The iPad mini isn't intended as a budget device for consumers willing to spend only a few hundred dollars on a tablet," said AllThingsD. "It's a device intended for consumers looking for an iPad with a smaller form factor. And those folks are willing to pay a premium, as Apple's iPad sales to date have proven."
iPad Mini specs
7.8 inch screen with 1,024 x 768 resolution. The resolution will probably not be retina display, but it is possible it would have the same ppi as found on the iPad 2. The tablet would be able to handle all the apps. The design will stick to the same aesthetics of the iPhone 5 with an anodized aluminum back plate rather than a plastic build.
It will have two cameras, one front facing, for FaceTime or other video chat applications, and another, higher resolution rear-facing camera on the back. The Mini should have a lightning port connector, like the iPhone 5, and will likely have an A6 processor, although, some sites are suggesting it may be an A5 like the iPad 2.