Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Apple preparing for cheaper iPad 2 enterprise push?

By | March 1, 2012, 4:08am PST

Summary: Reports suggest that while Apple is ramping up for an iPad 3 launch, a push for an enterprise-focused, cheaper iPad 2 with less memory could also be on the cards.

Rumour mill Digitimes reports this morning that Apple is readying a cheaper, 8GB version of its current iPad 2, alongside the upcoming expected iPad 3 tablet. An announcement is set for March 7th.

“In addition to iPad 3, Apple is also expected to unveil an 8GB iPad 2, allowing the tablet PC series to cover different segments and to defend against Windows 8-based tablet PCs, the sources noted.”

Forget the iPad 3 for now. The chances are it will be priced at the same level as the iPad 2’s 16GB and 32GB models, and will be an expensive device that only the wealthy companies can viably take advantage of.

A cheaper version of its older iPad 2 device may not have been a widely considered option until the report out today. The lesser memory also makes sense, allowing for the cheaper manufacturer of the device to reflect on cheaper volume pricing, and ultimately a lower cost to the business spending. Tablets only need to run a few applications, rather than act as storage device. That’s what servers and datacenters are for.

Apple’s focus on the enterprise market has yet to shine through since Tim Cook’s takeover last year. While consumer focus is still strong, its business focus could be better.

Digitimes is mixed at best. The report cannot be verified but it does not prevent the media from jumping on it as though it is fact. A similar report from the publication said that Apple is delivering samples of a 7.85-inch iPad device, which would aggressively compete with existing mid-sized range tablets already present on the market.

Whether Apple will break away from the usual mould and actively and directly compete with a rival product, it remains to be seen.

It is not Apple’s style to ‘react’ to a rival, in this case the Amazon Kindle or the Barnes & Noble Nook. It could also take a swipe at the upcoming range of business-focused Windows 8 ’slates’.

Apple sticks at what it does, and remains interested but not fixated on market share. While its users still thinks that the company can do wrong, it knows otherwise. Consumers will remain faithful, but the enterprise still requires the ‘cheaper’ factor.

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Topics

Zack Whittaker, a criminologist who studied at the University of Kent, Canterbury, is a journalist, writer and broadcaster.

Disclosure

Zack Whittaker

I worked briefly with Microsoft UK in 2006 but no longer have any connection with the company. Regardless, I remain impartial and unbiased in my views.

I don't hold any stock or shares, investments or industrial secrets in any company, but have signed confidentiality agreements with a number of UK and U.S. organisations, whose names I am not at liberty to disclose.

I was involved with Kent Union, the University of Kent's student union, undertaking voluntary, non-salaried, elected positions between early 2009 and mid-2010.

No other company, body, government department, non-governmental organisation or third sector organisation employs me or pays me a salary in any capacity whatsoever.

As a freelance journalist, whenever expenses are given and taken by a company that is not CBS Interactive, these will be disclosed in each relevant post to ensure transparency.

I currently work with a UK law enforcement unit, but this is an entirely separate position which bears no connection to other work.

(Updated: 23rd October 2011)

Biography

Zack Whittaker

Zack Whittaker, criminologist who studied at the University of Kent, UK, is a journalist, writer and broadcaster.

After studying criminology at university, though still in his early-20's, he has already had a series unconventional work and voluntary positions. He has worked with researchers studying neurological illnesses like Tourette's syndrome (which he suffers from), has given lectures on the nature of disabilities in the public community, and occasionally ends up speaking on television and radio discussing the events of the day.

He first had academic work published at the age of 22, then still an undergraduate, and has been cited by a wide range of publications: from CNN, the Huffington Post, AllThingsDigital, The Atlantic Wire and CBS News.

55
Comments

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Editor’s Choice

Good idea for schools
bradandmary 1st Mar
My school is getting ready to implement an iPad program into its elementary school. A cheaper iPad would only help in getting them into the hands of our students. Here's to hoping the rumor mill is generating something of substance this time...

Just In

@StandardPerson - missing?
Traxxion 17th Mar
Aside from processing power, memory and a screen you can work on comfortably (please do not bring iPhone into this conversation again, lets stick to iPad shall we?), I would also add to the list decent software. Apps in the Apple tradition are not decent software just so you know.
-2 Votes
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Editor’s Choice
Good idea for schools
bradandmary 1st Mar Editor’s Choice
My school is getting ready to implement an iPad program into its elementary school. A cheaper iPad would only help in getting them into the hands of our students. Here's to hoping the rumor mill is generating something of substance this time...
1 Vote
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bad idea for schools
ForeverSPb 1st Mar
our school uses good old desktops and kids are required to have a flash drive (which is listed on their supply list along with pens and erasers). ipads - who is going to support the wireless infrastructure at school? taxpayers. And how exactly wireless computers will add value to education? It all comes down to bragging rights of parents and / or school management.
2 Votes
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Oddly enough
ego.sum.stig@... 1st Mar
People said the same about textbooks. Students should make their own notes, if there's a book with it all in they won't engage/learn etc.

Who knows if tablets will get traction, but it's a cop out to just nay say them from the start. And this from me who'd rather bite a kangaroo than have a mobile.
0 Votes
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Combine this
Pete "athynz" Athens 1st Mar
With the new iBooks initiative in schools this is an excellent idea for schools - a low cost iPad to display the new multimedia iBook textbooks. Schools that already supply laptops to their students already have the support infrastructure in place - the schools that do not have a template for such an infrastructure.
0 Votes
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Infrastructure
davelca 1st Mar
When all of the technology fails, and it will, there will not be a paper version to take its place. What then? Send the kids home? This has way too many flaws.
0 Votes
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And from the look of things
Traxxion 1st Mar
@ego.sum.stig@
... there is quite a lot of evidence to suggest that the naysayers were right. Every developed cuontry in the world is struggling with poor student stats.

I'm not against moving forward with technology, but we didn't even get laptops out to every student and you can pick up one of those for less than 200 $/quid/whatever. Along comes Apple-mania and suddenly every student MUST have an iPad or they will get left behind. Give me a break - an iPad isn't even a proper computer and will certainly teach you nothing about computing.

If its just for taking notes, then I'm afraid poor students with pen and paper will have the advantage.
0 Votes
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davelca: "When all of the technology fails, and it will, there will not be a paper version to take its place. What then?"

How on earth will "all this technology fail"? Do you foresee a Neutron-bombing or EMPing of North America and Europe for some reason? If so, why?

"When all of the technology fails, and it will.."

Why will it fail? Also, if all tablet and WiFi technology is doomed to "fail" then I assume desktop PCs and data centres will go the same way, and we'll be plunged back into the world of forty years ago.

If this happens, tablets in classrooms will be the least of our worries!
0 Votes
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Traxxion: "an iPad isn't even a proper computer"
StandardPerson Updated - 1st Mar
Traxxion: "..an iPad isn't even a proper computer and will certainly teach you nothing about computing."

It looks like a "proper computer" to me. What, precisely, is missing?

If your complaint concerns the inability to write iOS Objectice-C code on iPads, I'd suggest that these are poor languages for school-aged kids to be learning computer languages.

However, iOS on iPhones and iPads will let you write and run code written in C++, Pascal, Perl, Java, Scheme and Lua, not to mention create and run finite state machines.

The only limitations with these languages is that the I/O must be textual, as with a UNIX commands, rather than graphical, but generations of UNIX-taught students have had no trouble making the textual-to-graphical transition.

With the possible exception of C++, these are the sorts of languages that high school students should be exposed to, in a course about computer programming.

It's not doing students any favour to teach them proprietary languages that are (largely) tied to a particular IDE (e.g. .NET languages on VisualStudio). To do this would be to teach students about an ephemeral *technology* (as opposed to computer *science*) that hides the vast majority of the code. Just create a TextBox in VS and then look at all the code that's automatically generated by the IDE for you and then hidden! That's not teaching you anything about computer science, unless you already understand the VS language you're using and the design patterns that Microsoft has chose for VS.
0 Votes
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@StandardPerson - missing?
Traxxion 17th Mar
Aside from processing power, memory and a screen you can work on comfortably (please do not bring iPhone into this conversation again, lets stick to iPad shall we?), I would also add to the list decent software. Apps in the Apple tradition are not decent software just so you know.
1 Vote
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Terrible idea for schools
Johnny Vegas 1st Mar
No school should buy any etextbooks that aren't in an open standard format that has readers available on all platforms and aren't available for purchase from multiple competing sources. Then these etextbooks will offer the exact same functionality on $99 Kindle Fires and $99 W8 tablets and $99 android tablets.
0 Votes
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If you think eTextBooks have to be in an open source format, then shouldn't regular dead tree textbooks also be available in an open source format, say through Project Gutenburg... But all those pesky book publishers have to stay in business. Oh darn!
Yet we've seen thousands of posts at ZDnet saying that until iPads & Macs offer MS Office - rather than iWork with not quite perfect MS Office compatibility - they have no place in the workplace or even universities.

When the world at large is required to accept documents in some open format (PDF?) then I'll start worrying about the format used by eBooks in schools.
0 Votes
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I'm sure...
Tea.Rollins 1st Mar
It'll be just as good as those useless imacs and other computers that cost 3x as much for the school as comparable windows boxes and taught children absolutely nothing useful for their professional lives.
0 Votes
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Certainly all the executives and the sales people now have them.
0 Votes
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It seems to me that there is little reason for an employee to use ipads at work unless they go to the customer's site. Then they wear a business suit, a tie, an expensive watch and show off an ipad as part of an overall business image.
0 Votes
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We've got demo versions of several of our products on the iPad, and also we have images of other products and services as photos they can scroll through.

Business suits, by the way, are expected in our industry.

The execs use them the way they used to use laptops.
0 Votes
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StoryDesk
mgroy 12th Mar
Would love tot alk about your pilot program. Sounds really cool, and ties into what we are doing at www.storydesk.com
1 Vote
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I disagree
Jean-Pierre- 1st Mar
Our sales reps have been using ipads since the original ipad came out and the biggest problem we have is managing the devices. Buying app in bulk, pushing app to devices remotely, an easier method to move files to and from the ipad. That's what our entreprise want, not 200$ rebate on the device.
0 Votes
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Seconded
happyharry_z 1st Mar
There needs to be a central administrative structure for this to work. We can't have our client contacts going out to the App Store developers now can we.
@Jean-Pierre, happyharry_z,
I think you both will find the answers you looking for in the following document images.apple.com/iphone/business/docs/iOS_Business.pdf.

Page 17 details most of your concerns
"Managed apps.
An MDM server can manage third-party apps from the App Store, as well as enterprise in-house applications. Designating an app as managed enables the server to specify whether the app and its data can be removed from the device by the MDM server. Additionally, the server can prevent managed app data from being backed up to iTunes and iCloud.

This allows IT to manage apps that may contain sensitive business
information with more control than apps downloaded directly by the user.
In order to install a managed app, the MDM server sends an installation command to the device. Managed apps require a user???s acceptance before they are installed. For more information about managed apps, view the Mobile Device Management Overview at www.apple.com/business/mdm."
0 Votes
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Apple has an entreprise program and its pretty good. It allows complete control by IT over apps and they can bypass the app store...
0 Votes
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@YaBaby
Tea.Rollins 1st Mar
Yeah, Microsoft has had that for years, in 10 different flavors. Fact remains, the ipad is still insecure and impossible to lock down. There's also the caveat that if you want to write real applications for it, you have to write C. Most developers I've known can barely manage java.
I'm angling for a bigger & better job here doing just that.
Fully managed in the enterprise and at a far lower price. There's no reason any business should be thinking about iPads (2 or 3) now with W8 tablets so close.
-1 Votes
+ -
Reasons?
z2217 1st Mar
I would think that leaving Windoz behind would be reason enough...
0 Votes
+ -
StoryDesk
mgroy 12th Mar
Jean-Pierre,

We can help. www.storydesk.com. Check us out.
-6 Votes
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Apple preparing for cheaper iPad 2 enterprise push?
Loverock Davidson- 1st Mar Below threshold | Show anyway
Doubtful, not when people are already paying $700 for for an iPad 2. They would have no reason to put in lower specs.
0 Votes
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Unless they feel that Windows 8
William Farrel 1st Mar
on a tablet may impact Enterprise purchasing decisions?
-4 Votes
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Oh it will
Loverock Davidson- 1st Mar
But that won't change things, they know their current customers will still upgrade every year.
  • Flagged
-2 Votes
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If their current customers upgrade every year, how does the number of new iPads/iPhones continue to grow? It would be the same number all the time, not more.

Once again I've proven you WRONG.
  • Flagged
0 Votes
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Clueless
SamWilkinson 1st Mar
-7 Votes
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Looked at the site
Loverock Davidson- 1st Mar Below threshold | Show anyway
and I admit, I was wrong. They are selling for $829 which is $129 more than I thought.
  • Flagged
1 Vote
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No, you're clueless
SamWilkinson 1st Mar
And you just proved it by your lack of reading comprehension.

$499 16 GB
$599 32 GB
$699 64 GB

Care to see a screenshot? Or is that something beyond your technical expertise since you have none.
-1 Votes
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$829 is for 3G 64 GB
SamWilkinson 1st Mar
So again..you're clueless.

You can't and won't win this argument. The same way your baseless argument that tablets are a fad have been proven wrong time and time again.
-5 Votes
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Thanks
Loverock Davidson- Updated - 1st Mar
Your last post just verified what I said, iPad 2 is selling for $829. Now that you read it for yourself you have no more argument. I don't expect to hear from you anymore on this topic.
  • Flagged
$829 is for the 64GB 3G model...

Tell me what the base 16GB model goes for without 3G...tell me that Loverock...you can't because then you'd prove yourself WRONG.

Where's Microsoft's tablet? Oh wait, NOWHERE TO BE SEEN.

I'll be getting my iPad 3...and you'll still be stuck using your garbage.
-1 Votes
+ -
Lower specs
deusexmachina  2nd Mar
@LD
Lord, you're dumb.
"Doubtful, not when people are already paying $700 for for an iPad 2. They would have no reason to put in lower specs."
Your point here is CLEARLY wrong, because they sell machines with lower specs ALREADY.

But tell you what, how about you stick around here after March 7th? I already know the answer, because every time I challenge you to put up, you disappear like the coward you are.
0 Votes
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Not possible
AdnanPirota 1st Mar
For the first time in my life I see words Apple and cheaper together in one sentence, maybe the end of world is nearing ...
0 Votes
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Apple is often cheaper
deusexmachina  2nd Mar
Which is why no one has been able to successfully under cut Apple on tablet specs, and why Windows-centric magazines like PC Magazine and Byte ROUTINELY listed various iMac models as best buys.
-2 Votes
+ -
Everything in this country is overpriced as it is.
About time prices drop. LONG LONG time overdue.
.
Where's your current income at verses, say, ...
10 years ago? (mine, no change)
20 years ago? (mine, no change)
30 years ago? (mine, I made $4 hr. more back then)
NOW look at the cost of living over the last 30 years.
Yah we're in NEED of prices dropping. A LOT!!!
.
0 Votes
+ -
No offense, fm-usa, but that seems odd. My income has more than doubled in the past decade alone... quadrupled in the past 20 years. If your current income is LESS than your 1982 income level (as you state above), there is something seriously wrong!
0 Votes
+ -
Apple Slumming?
windozefreak 1st Mar
This article covers more than just the read. (1) The WOAs must come at a real price deal. (2) They got Apple's attention. (3) They will likley be competitive. Just saying!
1 Vote
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Its for the textbook program
herbapou 1st Mar
The 8g ipad2 at 299$ is for the textbook program and requires a student ID to buy. It may have a micro-SD expantion slot too.

It may go retail at 349$ and that will be great competition over low price tablets indeed. But 8g is too low for business used imo.
0 Votes
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8gb too low for business?
Gritztastic 1st Mar
Depends on the use for business- 8GB is plenty if you are mainly using it for email/docs2go/web/accessing cloud data (which is the primary use in our org, w/ approx 90 ipads deployed). OTOH, 8GB is waaaaaay too small if the primary use is movies/games/music/photos, etc (home/consumer primary usage scenario).
0 Votes
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Why is 8GB too small?!?
deusexmachina  2nd Mar
One word:
iCloud.
0 Votes
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Really not seeing it
rhonin 1st Mar
Going forward ALL new apps and functionalities will be designed for the iPad3 - not the iPad2.

This will kill the iPad1.

Extrapolate that out, by 2014 the iPad2 will be dead. Why would I significantly expand this into my enterprise?

Btw - this very question came up at my place of work. No good answer was decided upon but we did decide to significantly expand the use of Android. The question on Win8 will be looked at next year once we have real devices.
What fraction of Androids delivered in the last couple of years are running the latest version of the Android OS? Every single iPad ever sold can run the latest version of iOS, and the upgrade is free, fully supported and very nearly automatic.

If you are concerned about tablet obsolescence, I would think Android devices would be at the absolute bottom of your list...
0 Votes
+ -
Backwards compatibility
Gritztastic 1st Mar
I find the device restrictions most common among games or other proc/memory intensive apps, or in apps that require a certain hardware component (eg Facetime front camera for video chat).

For mail/contacts/calendar, google apps, docs2go, VNC apps, etc (primary business use case scenarios), those tend to be very backwards compatible with earlier hardware revisions.

From an app developer's POV, especially if your app is targeted at the enterprise, it pays to ensure that it will work on earlier devices. Enterprise can be slow to upgrade, and the devs don't want to lose a few hundred sales due to hardware restrictions (if it can be avoided).
0 Votes
+ -
Because you are blind
deusexmachina  2nd Mar
Since this would be targeted at corporations and schools that side-loaded their own apps, what on EARTH do other people's apps have to do with anything?!?
More importantly, you have NO proof whatsoever to support your initial statement, so if you "place of work" made decisions based on this supposition, the person making it should be fired immediately
0 Votes
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Memory Costs are cheap
neil.postlethwaite@... Updated - 1st Mar
Wonder why, as memory costs are cheap.

Waiting on a Class 10 32Gb MicroSDHC coming. Delivered, inc sales tax, $25. USB sticks are even cheaper as 32Gb is less than $20.

Both, retail. Wholesale, Apple must pay almost nothing.

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