Summarization of New iPad Launch Comments: Apple Aims at the High-End Market

Reuters: Apple More Concerned About High-End Threats

The tablet market is flooded with low-cost devices running Google's Android system, but Apple may be more concerned about the threat from the high-end market.

"In the tablet PC space, they see Microsoft as a bigger threat than Android," said Gartner analyst Carolina Milanesi. "In the future, the iPad Air will compete with the Surface Pro, not Android tablets."

In 2010, Apple revolutionized the tablet market with its first iPad, but now it is facing challenges from other manufacturers. The iPad is under pressure from low-cost devices like Amazon's Kindle Fire and Samsung's Galaxy Note.

Despite the iPad's market share being eroded by competitors, analysts still believe that higher-quality apps and content will allow the iPad to maintain its leading position over the next few years. At Tuesday's event, Cook dismissed his competitors' products as "lacking direction":

"Our competitors are different from us: they are confused. Now they are busy combining PCs and tablets and then combining tablets and PCs. Who knows what they will do in the future?"

Wall Street Journal: Apple Responds With New Products

Apple's "holiday gift" has dropped below $300 for the first time; last year's iPad mini now starts at just $299, while the top-of-the-line iPad Air starts at $499.

During the launch event, Apple announced that the iWork suite would be free, directly competing with Microsoft. Meanwhile, the iLife suite, which includes photos, movies, and music, was also announced as free, previously priced between $4.99 and $9.99.

Analyst Patrick Moorhead commented that hardware upgrades and free software would help Apple attract more users, especially students and small businesses. "You don't have to pay extra fees anymore; you'll get the real technology that supports it."

For Apple, the new iPad and free software come at just the right time. In the third quarter, iPad sales saw their first year-over-year decline, with competitors continuously challenging Apple's dominance in the tablet market.

Gartner predicts that Apple's tablet market share will fall below 50% this year, while Android tablets will break through the 50% mark for the first time. Nokia also launched its first tablet on the same day, and Microsoft hopes it will become a second choice besides Surface.

Apple responded with new products. The new iPad features the latest A7 processor, making the 9.7-inch iPad lighter, and the iPad mini's screen sharper. The iPad Air will be available in the U.S. and other countries starting November 1, while the new iPad mini will be released later in November.

"I can't think of any other product shipped so quickly," Tim Cook said at the event. To date, Apple has sold 170 million iPads.

Forbes: Free OS X Mavericks and iWork Suite Continues Pressure on Microsoft

Analysts had long urged Cook and Apple to accelerate new product releases to boost sales and counter attacks from Amazon, Google, and Samsung. The former two have already introduced high-resolution small tablets, while the latter beat Apple to the punch with a smartwatch.

This time, Apple redesigned the 9.7-inch iPad and upgraded the iPad mini, adding the A7 processor and Retina display. The new iPad mini starts at $399 and will be available in November. The 9.7-inch iPad Air also features the A7 processor, weighs only one pound, and will go on sale on November 1, starting at $499.

Analyst Jan Dawson praised the new technology used in the iPad Air, saying it would boost overall iPad sales and promote product shipments. Apple's pricing strategy across different products wouldn't push users toward low-cost Android tablets.

"This is where Apple excels. The hardware and price gaps between the iPad mini, iPad 2, and the new iPad show that Apple aims to cover more markets. In the future, the tablet market will be filled with Apple devices, leaving Google and Amazon to target the sub-$400 market."

The free iWork suite forces Microsoft to reconsider its software pricing. Dawson said, "Microsoft generates 96% of its revenue from operating systems and office software. Now Apple is telling people that these don't have to cost money. This will inevitably disrupt Microsoft's business strategy and continue to pressure Windows and Office."

Bloomberg: Apple Unfazed by Competitors

As the holiday shopping season approaches, Apple has timely updated its iPad lineup. The new iPad mini boasts a higher screen resolution, while the larger iPad Air is lighter and thinner.

"This is just the beginning for iPad," Cook said. "We're already developing the next generation of iPads."

Over three years after Steve Jobs launched the iPad, the growth of tablet computers has begun to slow down. According to research firm Counterpoint Research, tablet shipments are expected to grow by only 28% next year. IDC reports show that the iPad's market share fell to 32% in the second quarter of this year, compared to 60% a year ago.

Analyst Benedict Evans said that the high pricing of the new iPad mini shows that Apple is not afraid of these competitors. The tablet market is now divided into two parts, with Apple dominating the high end with exclusive premium apps for the iPad, while low-cost Android tablets are mainly used for web browsing and video watching.

"A lighter tablet allows you to use it for more purposes," Flipboard co-founder Mike McCue praised the iPad Air. "Often, people can throw it in a backpack, carry it in hand, or simply use it directly."

The title image comes from iMore.