Apple will launch a 7-inch iPad in October of this year at price in between $200 and $250, according to a recent report from iMore.com.
"Apple will be going forward with the 7-inch iPad, currently targeting an Oct. 2012 release alongside the new iPhone and – here's the killer-at a $200 to $250 price point," said iMore. "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."
iMore states that Apple wants to leave no space for competitors, but there were some inconsistencies with this report.
"Our sources have indicated, however, that the 7-inch iPad will be identical to the current 9.7-inch iPad, just scaled down," added iMore.
This means it will feature the same HD Retina display with a resolution of 2048x1536.
To offer it for the price range that iMore is reporting seems highly unlikely for Apple, who just released the new iPad that features the best display on the market.
The specifications would have to be scaled down and be closer to the Amazon Kindle Fire that currently dominates the low-end tablet market to offer it for around the same price.
The reason why tablets such as the Kindle Fire and Barnes and Noble Nook can have such a low price tag is that they are not as powerful as the iPad.
iMore claims that low storage capacity would allow them to lower the price.
"It's hard to imagine a device with a panel that large and dense and having a price tag of just $200 to $250, especially when the baseline new iPad comes in at $500, but one way Apple will be keeping costs lower is by providing less storage capacity," said iMore.