Watch CBS News

iPad 3 mini on the way, says analyst

Apple's iPad 2 lineup.
Apple

(CBS) - Apple's iPad 3 is expected to be announced the first week of March, according to various reports. But, it's the rumor of a 7-inch mini iPad 3 that has people buzzing.

Apple iPad 3 rumors, let's get real
Apple iPad 3 rumors: thicker, sharper, coming soon
Full coverage of Apple at Tech Talk

Technology Business Research analyst Ezra Gottheil boldly declared to Computerworld that Apple allegedly plans to release a 7-inch mini tablet. But, don't expect to hear about it at the upcoming iPad 3 event.

"I believe that's always been in the plan," Gottheil told Computerworld. "Actually that's a good form factor for some users, and although they will also charge a premium above other similar-sized tablets, they want to protect that price flank."

Gottheil's predictions could just be pandering to budget-conscious gadget lovers, however. Apple's co-founder and long-time chief executive officer, the late Steve Jobs, rejected idea of a 7-inch tablet. Both the original iPad and iPad 2 are 9.7 inches. 

"7-inch tablets are tweeners: too big to compete with a smartphone and too small to compete with the iPad," Jobs said during a 2010 earnings call.

Apple has no incentive to launch a cheaper version of the iPad. There's not lack of demand for the tablet. Releasing a mini iPad would only pull customers from regular iPads, not necessarily mini-tablets, like the Kindle Fire or Barnes & Noble Nook.

Why would Apple release a cheaper product to cannibalize its own market share?

The Kindle Fire is the current leader in the 7-inch tablet market, with an estimated 6 million units sold last quarter. But, compare that to 15.43 million iPads sold. It's tough to justify a mini iPad.

While I personally hope for this rumor to be a true, I wouldn't place any bets on Gottheil's prediction. Until Apple makes a formal announcement, it's all speculation.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.