Apple reportedly will release its new smartphones and tablets in September; however, compared to these new products, Taiwan-based vendors are more concerned about whether Apple has plans to release an entry-level iPad mini or cut its existing iPad mini's price to boost demand, as both moves would significantly change the current tablet ecosystem, according to sources from tablet players.
When the iPad mini was launched, some research firms estimated its bill of materials to be at around US$188, compared to its entry retail price of US$329, the device still has plenty of room for price cuts. Although Apple has rarely adopted a price-cut strategy to boost its sales in the past, facing strong competition from various tablets, cutting prices is a possible choice for Apple to pick up its gradually declining market share.
If Apple decides to keep its new iPad mini priced at around US$351and drop its previous-generation model to around $260-280, it could significantly impact all the non-Apple tablet vendors and even change the tablet ecosystem.
Compared to Android, DigiTimes Research believes iOS has better management and less demand over hardware specifications. If Apple decides to release a lower priced iPad mini, the company will have advantages in cost control and product features, allowing the platform to have stronger competitiveness against Android.