Apple Inc will host an event on October 23, said a source familiar with the plan, in what is expected to be the unveiling of a smaller iPad to venture into a market staked out well in advance by rivals Amazon.com Inc and Google Inc.<\/p>\n
Speculation has swirled for months that Apple was planning a smaller, less expensive version of its popular iPad to take on cheaper competing devices, a move that analysts say may hurt its margins but prevent its arch-rivals from dominating an increasingly important computing segment.<\/p>\n
The consumer device giant is gearing up to unveil a new product at a major October 23 event, said the source who declined to be named, days before Microsoft Corp unveils Windows 8 and its new Surface tablet on October 26.<\/p>\n
The source did not specify what the product would be. An Apple spokesman declined to comment.<\/p>\n
News of the event was earlier reported by tech blog AllThingsD.<\/p>\n
The device, which many expect will sport a screen between 7 and 8 inches, is deemed by analysts to be the iPhone makers’ attempt to finally get into the fast-growing market.<\/p>\n
A smaller iPad will directly compete with e-commerce giant Amazon’s Kindle Fire HD tablet and Google’s Nexus 7, both of which have 7-inch screens and are priced at $199. The first Kindle Fire, launched last year, went on to grab about a fifth of the U.S. tablet market.<\/p>\n
The Nexus 7, manufactured by Asus, has also seen a successful start with the tablet selling out soon after launch.<\/p>\n
One Wall Street analyst said he saw the smaller tablet — dubbed iPad mini by the media — while visiting component suppliers in Asia.<\/p>\n
“We actually had the opportunity to play with a pilot iPad Mini used by one of the vendors,” Topeka Capital analyst Brian White said. “This 7.85-inch iPad Mini fit our hands like a glove and we were easily able to tuck the device in our sport coat, offering consumers a more mobile iPad experience for certain use cases.”<\/p>\n
Apple events are typically among the most-watched items on the industry calendar, monitored by consumers and tech investors alike. The event in two weeks however comes at a time of volatility for the most-held tech counter.<\/p>\n
Apple shares were up 0.75 percent at $632.84 in the afternoon, barely recouping significant losses over the past three weeks as investor cashed out after it touched an all-time high of $705.07 on September 21.<\/p>\n
While the stock is up 55 percent this year, it is currently down 10 percent from its record high following concerns about disruptions to iPhone supply after a September riot at one of the plants operated by its main contract manufacturer Foxconn Technology, and harsh criticism from consumers and reviewers about a wealth of errors in its crucial Maps service.<\/p>\n
New segment for Apple<\/strong><\/p>\n Apple’s s fiscal fourth quarter financial results are scheduled for October 25, two days after the event, offering analysts a rare opportunity to grill executives about their thinking around a new product just after details are unveiled.<\/p>\n A mini version of the iPad marks a departure for the company that now has just one 9.7-inch iPad, though it does come with various storage options and starts at $499.<\/p>\n Late Apple founder Steve Jobs famously derided the 7-inch screen as unwieldy for tablet applications, saying the devices should come with sandpaper so that users can file down their fingers to use them.<\/p>\n But an internal email — revealed during a recent patent trial against Samsung — showed Internet chief Eddy Cue arguing that there was a market for a 7-inch tablet and that Apple should have one. The email, sent in early 2011 to top Apple executives, said Jobs had warmed up to the idea of a smaller tablet.<\/p>\n Struggling Silicon Valley technology icon Hewlett Packard was among the first to show, albeit unwittingly, that there was indeed a healthy market for cheap tablets. Sales of the TouchPad took off after the company slashed the price to $99 from $399 and $499, after deciding to kill the product.<\/p>\n Related Articles<\/strong><\/p>\n Apple: sorry about the maps – try Google<\/strong><\/a><\/p>\n Google Maps not en route to iOS<\/strong><\/a><\/p>\n Apple’s map flub in the battle for mobile control<\/strong><\/a><\/p>\n Apple loses Samsung, Google patent case<\/a><\/strong><\/p>\n