Analyst: Apple Tablet Begins Manufacturing in February, Being Pitched to Publishers

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Apple will begin manufacturing its near-mythical tablet in February for a Spring launch, according to Oppenheimer analyst Yair Reiner. In a research note covered by All Things Digital, Mr. Reiner added fuel to story broken earlier in the year by saying contacts within the publishing industry say that Apple is bringing a "very attractive proposal" to them to get their content on its tablet device.

Mr. Reiner also said the device would have a 10.1" multitouch display, at a US$1,000 price point, and that Apple will be producing about a million units per month. If the company begins that production in February and aims to have 5-6 weeks of inventory on hand before selling the device, that would peg the release date in March of April.

Reports first began surfacing in October that Apple was approaching publishers about distributing content on an Apple tablet, with Australian publishers spilling the beans. According to Mr. Reiner, Apple is proposing the same revenue split it offers to iPhone app developers, 30/70 , with Apple keeping the 30.

That's the same rate Amazon offers for the Kindle, but only if publishers grant Kindle exclusivity. It's a 50/50 split otherwise, a split that has angered many a publisher. Apple's offer does not include a request for exclusivity, making the model that much more appealing.

"As innovative as it is," Mr. Reiner wrote, "we believe the Kindle has disgruntled the publishing industry (book, newspaper, and magazine) by demanding exclusivity, disallowing advertising, and demanding a wolfish cut of revenue. The tablet is set to change that. It should also make ebooks more relevant for education by simplifying functions such as scribbling marginalia."

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Comments

FlipFriddle

$1,000? Oh well. Hope he’s wrong on that count. I can’t wait to see it though.
I love the phrase “scribbling marginalia” BTW.

WetcoastBob

Could somebody please explain what the difference is between “price point” and cost?

I mean, really, “priced at a US$1,000 price point” sounds a little silly to me.

Bryan Chaffin

From one pedant to another, thanks for the note, WetcoastBob! smile

Seems spellchecker catches neither repetition nor redundancy - I crack myself up sometimes, but especially late at night…

Oh, and I corrected the article!

WetcoastBob

Actually…  What is the difference between “Price point” and “Price”?

I am a bit of an anti-jargonist.

Bryan Chaffin

Ah, I thought you were just ribbing me for my redundancy!  Which deserved ribbing, BTW. I’m glad someone pointed it out so I could edit the piece.

Anyway, without actually researching to see if I know what I’m talking about, price point is usually used to connote a target price, a guestimate, or maybe even a range.

Now I’ll look it up in true pedant fasion: Hmmmm….Wikipedia has an unsourced article that says, “Price points are prices at which demand for a given product stays relatively high.”

Assuming that’s correct, the specific connotation here would be that $1,000 is the high end of Apple’s pricing plans for the device, presumably based on internal determinations of how much we’ll pay.

I’m not sure that I’ve always used the phrase correctly, now that we come to it. Have to chat about it with my fellow editors once everyone gets back from traveling…

WetcoastBob

The Wikipedia definition you quote sounds a little lame.

I could go with ?Price points are the prices which would support a good volume of sales”

Anyway… Love the blog and have a good holiday season.  grin

Bob

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