Apple-created chips to power new tablet?
MacFixIt is not turning into a rumor site, but the compelling nature of a forthcoming tablet from Apple is too much too pass up. Today the Internet is buzzing with news that Apple's recently purchased PA Semi is designing the chips that will power the fab
CNET's Erica Ogg reports, via Venture Beat, that PA Semi will be designing the processors that will be used in Apple's touchscreen tablet device, rumored to appear as early as October. Ogg reminds us that Apple analyst Gene Munster has repeatedly suggested a tablet launching in early 2010.
This news adds to what I am sure will continue to be a speculative frenzy in the coming weeks and months. Every order for new parts, every new hire, every hint in an Apple press release will undoubtedly be connected to the rumored tablet. What is interesting about this particular story is what it could mean for Apple's pricing structure for the device.
Producing the chips in-house allows for a cheaper processor, driving that high-end price point down (hopefully). The rumored $800.00 price tag seems just a bit high, and too close to the full-featured MacBook. Many have suggested this tablet device will be marketed in the netbook sector because of its price. I am thinking this is highly unlikely do to Tim Cook's stance on the subject--essentially, "we have no interest in netbooks."
I expect the "iTablet" to be marketed as a high-end portable device, closer to a smartphone. As a commenter noted on yesterday's article about the rumored tablet, the screen size is equivalent to the Kindle DX, though I do not imagine Apple considers the Kindle as competition. Rather, I imagine Apple is looking to create its own niche market--a portable, touchscreen, gaming and application platform running a premium OS and Internet and 3G-ready.
Do you believe the hype? Is the latest news of Apple producing their own chips relevant? Let us know in the comments!
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Read this CNET News article by Erica Ogg about Apple producing PA Semi chips for a rumored touchscreen tablet.
Read this VentureBeat blog post about PA Semi producing chips for a forthcoming Apple tablet.
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