Apple Unveils New iPad, Apple TV (AAPL, VZ, VOD, T, S, AMZN, RIMM, SSNLF)

Investing

Published: March 7, 2012 2:10 pm

Last Updated: March 7, 2012 2:12 pm

Apple Inc. (NASDAQ: AAPL) today announced its latest version of its market leading tablet, the iPad. That’s right — no number, just iPad. The latest iPad will cost $499 for the base 16-GB version, a 32-GB version for $100 more, and a 64-GB version for $200 more. 4G LTE networking also costs an additional $130. The new iPad will be available on March 16th, and pre-ordering is available today.

The new iPad is the first tablet to take advantage of the higher speeds on 4G LTE wireless networks, and is a big shot in the arm for Verizon Wireless, the joint venture between Verizon Communications Inc. (NYSE: VZ) and Vodafone Group plc (NASDAQ: VOD) and AT&T Inc. (NYSE: T), both of which have the high-speed networks. With download speeds of up to 42 megabits/second, the wireless carriers’ profits should get a boost. The two carriers are scheduled to reveal their plans tomorrow. There’s no word on whether or not Sprint Nextel Corp. (NYSE: S) will sell a non-4G version of the new iPad.

The announcement will also put a squeeze on competitive tablets like the Kindle Fire from Amazon.com Inc. (NASDAQ: AMZN), the PlayBook from Research in Motion Ltd. (NASDAQ: RIMM), and the Galaxy Tab 10.2 from Samsung Electronics (OTC: SSNLF). In fact, with the latest iPad now coming to store shelves, Apple will almost certainly drop the price on its existing iPad 2 models to be more competitive with the Kindle Fire’s $199 entry-level price.

The new iPad uses a new quad-core chip, the A5X, which some Apple-watchers did not think would be available in time for this release. The new device also includes the expected retina display and a 5-megapixel camera, similar to the camera in the iPhone 4S. Battery life is said to be equal to that of the iPad 2 — up to 10 hours. The new iPad is also a bit thicker and a bit heavier than the iPad 2.

Verizon Wireless and AT&T will each get a different version of the new iPad because the two companies use different versions of 4G LTE networking.

Apple also announced a new version of Apple TV that supports 1080p high-definition for the same $99 price as the earlier version.

Lower pricing for the earlier versions of the iPad could drive the final nail in the coffin of RIM’s PlayBook and the other tablet wannabes, once Apple lowers the price on its existing models. And that’s not all. Apple sold 15.4 million iPads last year, more than the number of PCs sold by any single PC maker.

It’s a pretty safe prediction to say that your neighborhood Apple Store will see a lot of customers starting next week. And continuing for a long time.

Paul Ausick

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