Analyst Sees Strong Signs of Apple Moving Towards $500-$700 Tablet

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Date: Thursday, May 21st, 2009, 12:13
Category: News

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With Apple execs having openly slammed the idea of creating a conventional netbook, Piper Jaffray analysts stated today that mounting evidence exists that Apple will introduce its own take on the netbook in 2010 via a tablet device that will sell for US$700 or less.
“Between indications from our component contacts in Asia, recent patents relating to multi-touch sensitivity for more complex computing devices, comments from [chief operating officer] Tim Cook on the April 22nd conference call, and Apple’s acquisition of P.A. Semi along with other recent chip-related hires, it is increasingly clear that Apple is investing more in its mobile computing franchise,” analyst Gene Munster and his team wrote in lengthy research note to clients.
According to AppleInsider, Munster has said these investments will likely culminate with the launch of a touch-screen tablet with a display somewhere between 7″ and 10″ at a special event sometime in the first half of 2010. Such a move, he added, would be consistent with management’s comments that Cupertino-based company has no interest in catering to the existing segment for “cheap” miniaturized notebooks and its spoken desire to differentiate in a market currently dominated by cramped computers with razor thin margins and a subpar user experience.
To date, Munster’s contacts in the component supply chain have yet to see a prototype of the device but say there’s ongoing discussions between the company and its suppliers about the parts that will eventually be required to build the product.
Munster has stated that he believes the device will end up retailing somewhere in the range of US$500 to US$700, bridging the gap between the US$399 iPod touch and the US$999 MacBook. He expects that it will be driven by a proprietary microprocessor designed in-house by engineers Apple adopted in the acquisition of P.A. Semi and others it’s known to have hired in recent months.
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