Really great analysis about why, come October, we’re likely to see a smaller-form factor iPad from Apple. The current betting pool looks like it will be a 7.8 inch screen, and given this chart, you can be sure it’s going to fill in that lower-end range for Apple.
My guess? They will probably have an 8GB version that starts at $199, and extends to the $350 or so range at a range of storage sizes. I’m curious what that means for the iPod Touch, long-term…but for now, I think they will likely just maintain the line. If anything, it might put a bit of downward pressure on the Touch price. I can see Apple dropping the lowest spec Touch down to $99, and the going up from there.
Apple is very, very good at taking the oxygen out of a market.