Apple is planning to introduce a small,cheap tablet with a 7" screen and selling for around 200 dollars.Is this the wrong move for the consumer electronics titan?They are planning to go after a small market,said Todd Schoenberger,Managing Principal at The BlackBay Group.This is gonna squeeze them down the road.It means thin margins.This will cut into the iPad's 37% profit margins.
Apple is a category-killer.Reversing course,going after another market that they don't need right now is disturbing to a shareholder and investor.The profit margins are gonna be squeezed.Apple's challenge going forward is to break into new markets,emerging markets.You don't want to overlap product development.This happens with car companies,and it doesn't work.
The BlackBay Group is an asset management firm.The Payson,Illinois company says it will organize and simplify your financial affairs and help you make the informed decisions needed to achieve your financial goals.
Apple co-founder the late Steve Jobs explicitly rejected the idea of a small tablet.On the other hand,it is inevitable that new CEO Tim Cook will want to leave his own mark and take his own risks.He won't just be following the party line.Whatever changes he makes will be viewed critically by some.
Apple Computer(AAPL)
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