It's been a little more than two weeks since the iPad Mini and
fourth-generation iPad were released. If the latest rumor is
true, Apple (NASDAQ:
AAPL
) will reboot them again very soon. According to
DigiTimes
, "Apple is expected to introduce its next-generation iPad and
iPhone series around the middle of 2013."
This conflicts with a previous report that claimed the
next-generation iPhone, the presumably titled iPhone 5S, would be
released this winter. Up until now, millions of iPhone 5S units
were rumored to be in production. Cupertino, California-based
Apple does not comment on rumors and has not confirmed the
existence of an iPhone 5S, but the company is widely expected to
update the iPhone at some point next year.
The iPad, on the other hand, was no longer on analysts' radar.
As the most recently upgraded product in Apple's lineup (next to
the iMac, of course, which has yet to ship), the iPad Mini is
still very new. If consumers think that Apple is going to
continue updating its tablets every six or seven months, some
might wait to see what the next iteration is before making a
purchase. It won't take long before that becomes a vicious
cycle.
In addition to the iDevice upgrade rumors, Apple suppliers
will reportedly enjoy a healthy first quarter. DigiTimes' sources
have informed the publication that Apple's suppliers are expected
to report "particularly strong results for the first quarter of
2013." Their success is being attributed to the release of the
current iPhone, but it does not end there. "Component orders
placed by Apple, which climbed to high levels prior to the iPhone
5 rollout, will rise again between March and April," DigiTimes
reported.
This assumes that Apple will continue its current strategy. As
a hardware company, Apple's primary goal is to sell new iDevices.
Since its product lineup is rather limited (the company produces
one phone, two tablets, four MP3/video players and a handful of
Macs), the firm is forced to release frequent upgrades if it
wants to maintain strong sales.
While consumers are willing to replace their smartphones every
year or two, they may be less receptive to the idea of replacing
a $500 tablet. Most consumers use iPods and MacBooks until they
break beyond repair, reducing turnover.
This may be the reason why Apple is rumored to be getting into
the pay-TV business. While few believe that Apple wants to create
original content, the company may wish to bank on the perpetual
monthly fees that come with a successful service. By selling a
form of a la carte cable, for example, the Mac maker could still
earn billions of dollars even when it does not have a new product
to release.
Alternatively, Apple could expand its market reach by
releasing a new kind of iDevice. Beyond the rumored television
set, however, there are not many markets left for Apple to
explore.
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