According to sources with Bloomberg, Apple is planning to launch a smaller and cheaper iPad by the end of the year. The new iPad model is expected to be 7-8 inches diagonally, which is a couple of inches smaller than the current 9.7 inch version. Apple may announce the new product in October, but it would not have the same Retina Display screen that are appearing in Apple’s newest products.
A smaller tablet is a direct slam against rivals like Google, Microsoft, and Amazon. The smaller iPad would have a price that is closer to the Google Nexus 7. The margins Apple would make on this type of gadget would be tremendous. They are already seeing a 37% gross margin on the latest iPad, but since the smaller tablet would use a cheaper screen, Apple would be able to charge more for the device without sacrificing sales.