A new supply chain report today claims that Apple is considering a new inexpensive 9.7-inch iPad priced at around US$259 for 2018, according to sources from related upstream suppliers, which added that the device should be able to attract more demand from price-oriented consumers, allowing Apple to maintain its present 10 million-unit tablet shipments a quarter. Whether it's new in price alone or newly designed remains in question. The proposed iPad would be able to go toe-to-toe with tablets such as the Galaxy Tab.

With the new device, the sources expect the tablet market to witness a new wave of price competition among first-tier players including Samsung Electronics, Amazon, Huawei and Lenovo.

With the tablet market already becoming mature, Apple has been seeing weakening sales for its iPad series, while Android-based tablet shipments have also been declining. Most second- and third-tier brand vendors had already stepped out of the market, while China-based white-box tablet players had also shifted their focuses to other product lines after Intel stopped providing subsidies for using its CPUs.

The sources pointed out that Apple's new iPad may arrive as early as the second quarter of 2018 and in addition to regular consumers Apple is also looking to expand the inexpensive iPad into the industrial and service sectors.

The sources noted that Apple is likely to outsource the production of the new iPad to Compal Electronics.

The proposed entry level iPad could help Apple in markets like India and Vietnam while being able to better compete in the K12 market in the U.S.. We noted in a report in October that Google has taken a commanding lead in education holding 58% while Apple has fallen to 14%.

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