I don't post many links to rumors, because there seem to be a minimum of 10 per day. iMore holds rumor publishing to a minimum and has a pretty decent track record when they do make the effort to publish inside information. They've posted a story today with updated information about the much rumored 7" iPad.
Apple will be going forward with the 7-inch iPad, currently targeting an October 2012 release alongside the new iPhone, and -- here's the killer -- at a $200 to $250 price point. According to our sources, the reason for such aggressive pricing is to do to the tablet market what Apple did to the MP3 market in 2004 with the expansion of the iPod product line -- leave absolutely no space for competitors.
I'm really interested to see where this goes. Aside from the initial Kindle Fire, there's been no real demand for smaller tablets. I don't see where Apple needs to make this move. By my thinking, if Apple does produce the 'iPad Mini' it will be a purely offensive move, not defensive. I think the comparison to the iPod is very apt. There was never any real competion for what became the iPod Classic, but that didn't stop Apple from bringing to market the iPod Mini and then later the Ipod Nano, which went on to become their best selling models.
If other computer and tablet makers want to really lose sleep, they should imagine the very real possibility that by Christmas time this year Apple wil be selling the best tablets available on the market priced $200 and up. It's a scenario that could make their 70% mp3 player market share look tiny in comparison.