7-Inch iPad Mini Not Likely - Analyst

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Apple has been rumored to have an iPad Mini in the works, which is reported to measure 7.85 inches diagonal. But even as suppliers say that Apple’s work on its miniaturized iPad is underway, industry analysts are wary.

We earlier reported on Apple having started sourcing components for the reported iPad Mini, which should sit right between Apple’s iPhone and iPad product lines in terms of size. But while designers have lauded the move, it’s not likely to happen anytime soon, according to Wedge Partners analyst Brian Blair. Blair cites Steve Jobs himself, who panned the very existence of 7-inch tablet computers.

Don’t expect a 7-incher. While we believe Apple has tested 7-inch screen prototypes for a year, we don’t currently expect the company to release anything in the 7-inch size in 2012.

Blair notes that former Apple CEO Steve Jobs had been critical of the 7-inch form factor, which the company’s competitors have used on their entry-level devices, notably the Samsung Galaxy Tab and even the recently-launched Amazon Kindle Fire (which Steve Jobs, incidentally, didn’t live through). During a 2010 earnings call, Jobs said the reason Apple doesn’t make a 7-inch tablet is because they  ”think the screen is too small to express the software.” Apple wants to make the best user experience out of the tablet, and 7-inches is smaller than optimal.

Wedge Partners believes that Apple is likely to keep producing the iPad 2 even when the iPad 3 launches, in order to differentiate the markets. They could, for instance, sell the iPad 2 as an entry-level device in the $249 to $499 range, which is the same strategy that Apple does in selling the two-year old iPhone 3GS alongside the newer iPhone 4 and iPhone 4S.

Apple is not likely to stray from this strategy, and we probably should not expect a smaller iPad, at least in 2012. But Apple is known to have changed its mind on some significant business plans in the past (think Intel), although this is mostly an exception rather than the rule.