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There have been a lot of rumors floating around over the past few months that Apple is planning on launching a low-cost iPhone this fall. At the company’s second-quarter earnings call, Apple CEO Tim Cook seemed adamant that the company is focused on quality over quantity. However, nothing would be a surprise at this stage. Recently, analyst Ming-Chi Kuo of KGI Securities sent a note to investors that Apple is also working on an iPad mini that would be priced on the low end at $199.
According to MacRumors, Kuo told investors that Apple might be working on a low-cost iPad mini to launch just before the second-generation 7-inch Apple tablet, which is rumored to feature Retina display.
“Prior to iPad mini 2 launch, Apple might roll out a more affordable iPad mini to compete with Android products. To cut costs, Apple might push for lower component prices, use a more advanced process to produce the A5 processor, simplify metal casing production, remove the rear camera, cut storage to 8GB and find more component suppliers to lower costs. We think this cheaper iPad mini retail for US$199~249.”
Kuo believes that this move is intended to generate interest in Apple products from consumers who might otherwise turn to cheap Android-based tablets for their mobile needs.
When the iPad mini first launched last November, one of the complaints coming from tech reviews was that the device was overpriced at $329. However, the company has admitted that the iPad mini has a lower profit margin than the company average. How Apple plans to make a cheaper tablet without compromising quality is the big question.
Would Apple be willing to join the rest of the tech world in releasing a low-cost, low-quality tablet simply to compete for more consumers? Or, is Apple going to stand by what they say at every earnings call, which is that the company strives to bring high-quality and innovative technology to the market, not to make a few extra bucks.
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