Quote:
Originally Posted by ezkcdude
The problem is the margin. If Apple is getting into that segment of the market because they are losing share to Kindle, that means, by definition, the 7" iPad will cannibalize the larger (and more profitable) 10" iPad sales. Apple doesn't want that.
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Apple has said repeatedly that they don't mind cannibalization as long as it is them cannibalizing their own products. It's better than having someone else steal those sales.
And how would selling a 7.85" iPad to someone instead of them buying a Kindle Fire cannibalizing Apple? That would be cannibalizing Amazon Kindles.
And why exactly are we to assume that Apple can't maintain worthwhile margins on a 7.85" iPad? Just because Amazon reportedly isn't? I'd very strongly suggest that Apple is leaps and bounds ahead of everybody in the manufacturing/profiting business - especially Amazon.