Seeking Alpha

Sam Diaz

From ZDNet:

The rumors around the arrival of a tablet computer from Apple (AAPL) have been out there for a while, but the latest one from the AppleInsider blog seems to have some meat to it.

Image Credit: AppleInsider

[Image Credit: AppleInsider]

The blog is reporting that Apple has plans to launch a 10-inch, 3G-enabled tablet, kind of an oversized iPod Touch, if you will. Because it would be 3G-enabled, there’s also growing speculation that Apple is tapping Verizon (VZ) to be the carrier partner. Remember: the exclusivity agreement between Apple and AT&T (T) only applies to the iPhone. (see update below)

Of course, none of this has been confirmed by Apple. Still, AppleInsider doesn’t just attribute the information to a source but rather, in a WSJesque way, cites “people well-respected by AppleInsider for their striking accuracy in Apple’s internal affairs.”

What’s most striking about this rumor is that it also includes information about the Steve Jobs Seal of Approval, which doesn’t come easy around Cupertino. The back-to-work CEO has reportedly signed off on the device and “cemented” it into plans for a Q1 launch next year.

With all of that said - and recognizing that no one is officially commenting about the device or fielding on-the-record questions - I offer the following thoughts to ponder, based on what I’ve read in other postings.

  • The price becomes an issue because it would have to be cheaper than the lowest-priced laptop in the lineup ($999) but likely would be more than $500. Anything less than that would put it on the comparison charts against the netbooks, which COO Tim Cook has called “junky.” At the same time, with a wireless carriers involved, subsidies will likely drive down the price even more.
  • Is it an oversized mobile device or a small-sized laptop computer? Well, that could depend on 1) whether it’s powered by Mac OS X or the iPhone OS and 2) the type of chip it has inside. The AppleInsider post has some good historical insight into the issue over the chip choice (in the latter half of the post.)
  • I wonder what this means for the Crunchpad, the tablet device that’s the love interest of TechCrunch founder Michael Arrington these days. That device, a 16mm thick tablet with a 12-inch screen, is expected to retail for about $300 and will be available “as soon as possible.” A post on CrunchGear this week, reporting on rumors of Verizon powering an Apple tablet, ends with blogger Peter Ha writing, “We (as in Michael and CrunchPad Inc.) better get on their horse and get the CrunchPad out.”

I would tell you that we’ll be waiting for the official confirmation from Apple - but I would also caution you to not hold your breath for that one. Knowing Apple, the official confirmation will come from the stage of a special event where the company will announce that the device is already in stores.

updated: TechCrunch, citing unnamed sources, reports that Verizon is fast-forwarding its launch of its 4G LTE service to reach markets by Q1 of 2010, instead of the second half of the year. No one is tying it to a device for Apple but TechCrunch’s source also noted that “there was talk of at least one non-dongle (wireless card) product that this LTE launch was being specifically geared towards.”

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This article has 15 comments:

  •  
    the tablet will be one of the most useful devices ever produced! the tablet will fit in nicely with Apple's product line!
    Jul 26 01:19 PM | Link | Reply
  •  
    It would be a mistake for Apple to launch the new rumored device via Verizon or any other Carrier....... It should not be thought of as another smart phone.

    Wifi access alone would give it a huge market without (also) being a cellphone (and it can tethered if wanted). If it has cellular access built in, it should be useable on the owners choice of Carrier's network.

    If they cook up another greedy sweetheart deal with a Carrier, it will turn-off many potential buyers.
    Jul 26 01:29 PM | Link | Reply
  •  
    Since Verizon is head-and-shoulders above the other carriers, making a deal with them should go much better than it did with AT&T (I still use a Blackberry instead of an IPhone simply because I'm NEVER going back to AT&T and their constant dropped calls).
    Jul 26 01:56 PM | Link | Reply
  •  
    Very COOL!!!
    Jul 26 04:34 PM | Link | Reply
  •  
    Well first of all none of your past experience with cell phone provider dropped calls will mean a thing going forward. Both AT&T and Verizon are rapidly building out their 4th Generation networks. User experiences with older networks won't mean squat. It's a whole new ballgame.

    Apple will not launch just one tablet product. If they learned anything from their iPhone & iPod Touch experience it is that they can get double payback on development costs by launching at least two new products.

    There will be a subsidized tablet with 4G connectivity and a hefty monthly bill for wide area access. There will also be a WiFi only model with no subsidy and zero monthly billing. That's a given.
    Jul 26 06:32 PM | Link | Reply
  •  
    Just don't send me anymore spam! How many of these toys do we need? If I could just get a dollar beer.
    Jul 26 06:34 PM | Link | Reply
  •  
    How soon can we expect the Palm version?
    Jul 26 08:15 PM | Link | Reply
  •  
    "There will be a subsidized tablet with 4G connectivity and a hefty monthly bill for wide area access. There will also be a WiFi only model with no subsidy and zero monthly billing. That's a given."

    Or maybe there'll be one model with a docking port for the iPhone, to allow users to have cell phone connectivity indirectly.
    Jul 26 09:19 PM | Link | Reply
  •  
    This has to be the next logical move.. a stand and bluetooth keyboard added and you have the perfect computer for School's to use. In NSW Australia - there has been a roll out of computers for schools and Apple computers didn't qualify as the size limit was about 11 inches. A tablet with suitable ergonomic add-ons would be such a sensible move and imagine the size of the market worldwide. I'm sure the single body piece and strength of the glass multi touch screens will again make Apple the outstanding producer of this bit of technology equipment - the on-screen keyboard adapts to any alphabet set worldwide - a huge saving in costs.. Probably Netbook manufacturers are even trying to produce their own version of this tablet at this moment in time but Apple is streaks ahead with its stable OS and app store.

    Then there is the move to downloadable text books and you have an Apple winner again of yet another market. AND no viruses - has to be such a plus for central IT in education and business.. no kidding Viruses cost a huge amount in IT support and school can't afford this..
    Jul 27 12:27 AM | Link | Reply
  •  
    Only when they can copy Apple..


    On Jul 26 08:15 PM NDinMSP wrote:

    > How soon can we expect the Palm version?
    Jul 27 12:29 AM | Link | Reply
  •  
    Actually, I think the next (or parallel) logical move will be a 3rd-party clamshell "case" to protect the tablet, that also has a netbook-sized keyboard and port replication/additions (i.e. USB).

    "Look, Ma, a netbook!"

    Then Apple gets the best of both worlds - without ever having been accused of creating "crappy" netbooks.

    On Jul 27 12:27 AM Aussie Machead wrote:

    > This has to be the next logical move.. a stand and bluetooth keyboard added and you have the perfect computer for School's to use. ...
    Jul 27 11:34 AM | Link | Reply
  •  
    is his HD or flash memory?
    Jul 27 05:19 PM | Link | Reply
  •  
    I would buy one, but how to keep the screen clean?
    Jul 27 06:35 PM | Link | Reply
  •  
    Seems unlikely that they'd release a new product like this just after Christmas. I suppose it's possible that they're waiting on a chip or a network capability, but a September or October release would give them a huge Christmas sales bump that they could not recover if released in January or February.
    Aug 01 03:52 PM | Link | Reply
  •  
    If you keep calling those netbooks 'crappy', it will just make me happier when I see what else can run on them just fine. Which btw, I can also use my Samsung N110 to charge the iPhone.
    Aug 10 01:56 PM | Link | Reply