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Apple Orders 10 Million Tablets?

Arvisp writes "According to a blog post by former Google China president Kai-Fu Lee, Apple plans to produce nearly 10 million tablets in the still-unannounced product's first year. If Lee's blog post is to be believed, Apple plans to sell nearly twice as many tablets as it did iPhones in the product's first year."

16 of 221 comments (clear)

  1. I was offered one of these in an e-mail today by ciderVisor · · Score: 5, Funny

    10 tablets for $15. Only available in blue.

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  2. Bulk discount by nacturation · · Score: 4, Insightful

    I'm thinking Jobs asked "How much per unit if we're making 10 million of them?" Then after the manufacturer crunches the numbers and comes back with the figures, Jobs will offer to pay that per-unit cost but in increments of 10,000 units.

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    1. Re:Bulk discount by Enderandrew · · Score: 4, Insightful

      Change 10,000 to 100,000 and I wouldn't be shocked. He then states, "you want to be the manufacturer who gets this contract, because we will eventually order 10 million. And you don't want to do try and produce 10 million at once anyways. So give me the 10 million rate, and in you're in the door for 100,000 today."

      The iPhone didn't sell well initially for a couple of reasons. Most individuals didn't think they needed smart phones. Most smart phone users didn't think the iPhone was a real smart phone. It took a while for people to realize the potential of the app store, and what the iPhone could do for them. The iPhone is also tied to one network.

      The tablet could just be a plain wifi tablet with no cell phone support out of the box. You can always add a cellular modem, just like you do for your notebook today. If it isn't tied to a specific carrier, and they can launch it globally overnight (as opposed to fighting for different carrier deals in different countries) then they could easy trounce iPhone's early sales.

      Apple has customers happily paying $2,900 for laptops. If they make a nice tablet for $999, I think people will eat it up.

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    2. Re:Bulk discount by Dog-Cow · · Score: 4, Insightful

      Actually, I refuse to believe Jobs is that short-sighted or stupid. That hoopla over web apps was Jobs telling you what you had while he had the team feverishly working on the SDK in the background.

      He couldn't say nothing. And he couldn't say it was coming later, because if he did, no one would have touched the iPhone for the first year.

    3. Re:Bulk discount by dhovis · · Score: 4, Interesting

      Actually, I refuse to believe Jobs is that short-sighted or stupid. That hoopla over web apps was Jobs telling you what you had while he had the team feverishly working on the SDK in the background.

      He couldn't say nothing. And he couldn't say it was coming later, because if he did, no one would have touched the iPhone for the first year.

      There was more to it than that. I think there was a debate between a native SDK and using a web-based SDK (like what Palm did with WebOS). Apple was clearly working on both tracks, but WebKit was just not ready fast enough. There was evidence of this.

      One of the complaints about the web SDK approach was the lack of local storage for offline use. A SQL interface had been proposed for HTML5, but hadn't been implemented by anyone yet. Apple announced the iPhone native SDK on Oct 17. That weekend (on Oct 19th), quietly on the WebKit Blog, HTML5 client-side SQL storage was quietly checked in. Coincidence? No way.

      The other thing is for certain, the iPhone native SDK was not ready in time for iPhone 1.0. The jailbreakers had to deal with regular app breakage due to Apple changing APIs. Apple wasn't screwing with the jailbreakers, they were refining the SDK. That is much easier to do if you only have a dozen in-house applications to work on. Once it was declared final for iPhone 2.0, Apple had to support it fully. There have been few changes to the public API since, though there were some for iPhone 3.0.

      Oddly enough, I think the people who wish the iPhone to be more open would have been happier if the webSDK approach had won out. It would have made it easy for other companies to support iPhone apps by including a WebKit-based browser.

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  3. no way: scarcity increases demand by je+ne+sais+quoi · · Score: 4, Insightful
    My favorite part of TFA:

    The iSlate is sort of a big iPod, but not really. It performs a lot of notebook-like functions, but it's not really a notebook either.

    And the author knows this how? How do we know it will be a "big iPod", it could be completely different for all we know because nobody has seen it who is allowed to talk about it. Regardless, of what it actually does, the idea that Apple will predict that it will sell 10 million tablets in the first year is hooey. If anything, I would guess they will do the opposite and order too few units in order to increase the demand for the product by creating scarcity. Just ask the Nintendo when the Wii came out or whoever made tickle me elmo how this works...

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  4. Why Blogs Don't Matter by Slash.Poop · · Score: 4, Insightful

    Come on now people. This is obviously bogus. Apple would be sitting on 5 million plus (low estimate) tablets when the technology changes in 6-12 months. No way they are ordering 10 million.

  5. The Apple Product Cycle by Foggiano · · Score: 4, Interesting

    So we're at the first step in the Apple Product Cycle? It's nice to see we're right on track.

    As an aside, I think it makes lots of sense for Apple to produce a tablet product, but I can't imagine them actually producing 10,000,000 of these things for launch.
    First, it's a ridiculously high number, far exceeding the number of iPhones sold in a year and coming close to the number of all types of iPods combined.
    Second, I doubt Apple would ever allow any of their new products to be overproduced. Artificial scarcity only adds to the perceived desirability of Apple products, driving the hype engine even more.

  6. Re:drive down cost by Reason58 · · Score: 4, Insightful

    With the strong following that Apple has for its product lines and the underserved tablet market for personal computing i dont see this as unreasonable. provided they got the bugs out before investing in the hardware. a mass order will help Apple secure a better cost and that should bring about a better retail for the consumer.

    As someone who has used and supported hundreds of tablets and convertibles, let me assure you the "tablet market" is right where it should be. Tablets require the user to give up a large amount of functionality in the form of a physical keyboard and mouse, and the return for this is minimal and extremely niche. While I do not doubt that Apple could do well selling these on brand alone, tablets are simply not a practical replacement for the standard notebook or desktop.

  7. Re:Naysayer by Serious+Callers+Only · · Score: 4, Insightful

    In answer to you naysayers, I have only this to say:

    No wireless. Less space than a nomad. Lame.

  8. Reading comprehension by UnknowingFool · · Score: 4, Interesting

    The author of the article has a hard time believing that Apple ordered 10 million tablets this year. While his logic is sound regarding the numbers, the author isn't quoting Apple. The author's source for this rumor is an ex-Google employee. And this employee is not saying Apple "ordered" 10 million only that Apple "plans to produce" 10 million. There's a huge difference between the two. Like any company building a new product, Apple has ordered X amount while letting their suppliers know that they may want up to Y amount. If the product sells well, Apple will increase their order. If it doesn't Apple will not. Also the Y amount may be an unreachable goal. Sometimes when negotiating contracts, some suppliers are not interested unless you are ordering a large amount. Everyone knows that goal isn't likely but it makes everything look good.

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  9. Apple ___ set to revolutionise electronics by David+Gerard · · Score: 4, Funny

    ONE INFINITE LOOP, Here We Go Again, Sunday (NNGadget) — Apple is reportedly close to launching its long-rumored ____. It could be Apple’s latest billion-dollar jackpot.

    Analyst speculation says the ___ will be launched in September and be in the shops by Christmas. A new mention of the ___ crops up on Twitter around every eight minutes.

    The ___ is rumoured to be any size and scale between the iPod Shuffle and the Macintosh IIfx. Some have described the ___ as a “___-killer.” Analyst speculation suggests the ___ will use a fantastic new interface. “It will be a whole new paradigm,” said Apple blogger Leander Kahney.

    Expectations flared when technology research analysts noted that Taiwanese suppliers had received orders from an unknown buyer for a particular obscure component to be filled by the end of the year. “The only possible conclusion is that Apple will launch a ___ by early next year,” said Kahney. “They’ve been working on the ___ for the past six years. People expect it to be the ultimate Apple surprise. This thing will knock people’s socks off.”

    Apple has refused to comment on the ___ speculation. But Tim Cook, its chief operating officer, recently hinted that the company was working on something “very innovative.” Steve Jobs is thought to have been personally involved in the development of the ___ over the past two years.

    Daniel Eran Dilger noted on roughlydrafted.com that the ___ would need to be fueled on pain, angst, the destruction of the ecology, the torture of kittens and the tears of widows and orphans, but put together a devastatingly convincing and very lengthy explanation as to why Apple’s actions were the only humanly acceptable option for the consumer, the technology industry and the future of humanity, and that Jobs’ Nobel Peace Prize was ridiculously overdue. And that all problems were clearly Microsoft’s fault.

    Illustration: The generic Apple product. Fits everyone!

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  10. Re:How many times do I need to say this by nine-times · · Score: 5, Informative

    Obligatory: http://www.misterbg.org/AppleProductCycle/

    It explains everything you need to know about the Apple rumor mill.

  11. A Tablet isn't a PC replacement, it's an add-on. by Jason+Pollock · · Score: 4, Interesting

    As we're seeing with the Kindle, and the iPhone, many people can find uses for additional computers in our lives. I can definitely see a use for a tablet device sitting on my coffee table, waiting to be used by anyone walking in as both a media selector (iTunes to an AirPort Express/Apple TV), or as a general device to answer "Who is in that movie?", "What's on tomorrow", "You're talking BS" questions. I already use my iPhone for that, this would just be a general device, whereas the iPhone is "personal".

    Add to that the ability to use it as a general book reader, and you've got a winner.

    Tablets aren't laptop replacements, they are secondary displays for the living room, secondary devices that enhance your ability to use the compute power you _already_ have in your house.

  12. Re:drive down cost by Serious+Callers+Only · · Score: 4, Insightful

    As someone who has used and supported hundreds of tablets and convertibles...tablets are simply not a practical replacement for the standard notebook or desktop.

    Good thing they won't be building a 'tablet or convertible' then, and won't be trying to shoe-horn a desktop OS into a tablet form factor like other tablets mentioned here which run Windows. Those are attempts at replacing the laptop, which I doubt we'll get from Apple. But this isn't about revolutionary hardware (which we will not see), or devices which run Windows (which are frankly irrelevant). The Kindle is probably a more apt comparison, though it's also very different, or the as yet unreleased MS Courier concept.

    What this sort of bullet point comparison to currently shipping products completely ignores is that if the software is sufficiently well thought out, the device transcends its list of features. I imagine the hardware will be as simple as possible, ARM based slate format with a touchscreen, long battery life, and perhaps one button to turn it on. But the hardware doesn't really matter; it's not going to be the first, or the fastest, or the smallest, or the lightest, or the biggest, tablet, though I'm sure Jobs will come up with some superlatives to try and sell it.

    The magic sauce that Apple can provide here is in the software; the integration with a massive store selling every kind of media you can imagine, straight to the device, the integration with your desktop computer and phone, calendar and address book, the integration with your existing media library in iTunes, an existing catalogue of apps and games, and finally the pleasure of interacting with a UI which has actually been designed from the ground up for a touch screen interface, instead of grudgingly adapted for it. Good design matters, as Apple products demonstrate. All that stuff is available in pieces from other people, but it's quite hard to put together in a nice package.

    The iPhone OS is actually pretty revolutionary as operating systems go - it removes a lot of chrome we've become used to over the years - menus, window widgets, overlapping windows (save alerts), and replaces it with something simpler, and I expect the next evolution of it will take things a little further along this path.

    However the greatest potential this device has to shake things up is not in the hardware or software, but in promoting the transition from paper to pixels which began with the www and has been accelerating ever since. If they provide the tools to package and sell snippets of html based content in the style of iTunes LP packages, they could provide the micro-purchase web that content producers have been waiting for, and many consumers who prefer their content not to be infested with ads are willing to pay for. I hope it supports epub, pdf, plain html and other common formats too, just as the iPod supported MP3, and if iPhone software is ported, it will.

  13. Re:Apple rumor double-speak by dangitman · · Score: 4, Insightful

    At some point they'll just end up picking off their own product sales and they will become their own worst enemy,

    I think that's Apple's old way of thinking. The new Apple realizes that to move forward, it needs to compete with its own products, rather than fearing cannibalism. If the possibility for something better exists, and you don't make it for fear of competing with your own products, then somebody else will, and take that business away from you.

    This attitude is clear with iPods, where Apple produced new models at a rapid pace, including variations such as the mini and nano which competed with the more expensive full-size iPod. And finally, it happened with the iPhone, which in many ways makes the iPod obsolete. Apple realized it couldn't rely on the iPod being relevant forever, so came up with the next big thing, and finding extra revenue streams such as the App Store.

    We also see it to a lesser degree with the Macs. In earlier times, Apple would deliberately cripple its low-end computers so as not to compete with the more expensive models. However, recently, we've seen Macbooks that are nearly as good as the more expensive Macbook Pros, just without the fancy aluminum case. Sure, there are some spec differences, but it's not like the Macbooks are being hobbled out of fear of cannibalism like they were in the past.

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