7-inch iPad by Christmas can be Very Good News for Apple and Bad News for Others

Submitted by lalit on August 18, 2010 - 1:04am.

Rumors about Apple developing a 7-inch tablet (iPad) model have been going around for more than two years now. However, for past few weeks these rumors have gained additional momentum, as many tech website have reported that the 7-inch iPad is coming soon. Today, PC World added fuel to the fire by posting a news piece reported by Chinese language newspaper Economic Daily. The website posted:

The Economic Daily reports that Taiwanese companies have won a number of component contracts for the iPad 2. Chimei Innolux will supply 7-inch LCD screens, which use the same IPS (in-plane switching) technology found in the original iPad, which improves viewing angles and color on LCD screens. Touchscreen technology for the screens will come from Cando Corporation, the report says.
Apple has also tapped Compal Electronics, one of the world's largest contract laptop computer makers, to assemble the new iPad, the report says.

According to the Chinese newspaper, the above-mentioned 7-inch iPad will ship as early as end of this year. This can be very good news for Apple, as the company is not able to meet 9.7-inch iPad demand because of LCD supply shortage. LG supplies the LCD for 9.7-inch model and their CEO has already said that LG won’t be able to meet iPad LCD demand till first half of 2011. Which almost guarantees that iPad will be in short supply till then.

By introducing a 7-inch model Apple would offer customers who are waiting for iPad an option, thereby increasing iPad availability and reducing shortage. This could in theory increase iPad’s growth further, which could mean bad news for all upcoming iPad cloners including Android tablets.