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Apple Preparing New 12.9-Inch IPad for Early 2015

By Tim Culpan, Adam Satariano and Ian King
August 27, 2014 2:30 AM EDT 97 Comments
Apple Chief Executive Officer Tim Cook is working to shake up the iPad line. Sales of the tablets, which are Apple’s second-biggest product by revenue after the iPhone, have declined for two straight quarters amid a lack of new models.
Photographer: Andrew Harrer/Bloomberg
Apple Chief Executive Officer Tim Cook is working to shake up the iPad line. Sales of the tablets, which are Apple’s second-biggest product by revenue after the iPhone, have declined for two straight quarters amid a lack of new models.

Apple Inc. (AAPL)’s suppliers are preparing to manufacture the company’s largest-ever iPad, with production scheduled to commence by the first quarter of next year, according to people with knowledge of the matter.

The new iPad will have a screen measuring 12.9 inches diagonally, said the people, who asked not to be identified because the details aren’t public. Apple currently produces iPads with 9.7-inch and 7.9-inch displays. The Cupertino, California-based company has been working with suppliers for at least a year to develop a new range of larger touch-screen devices, said the people.

Trudy Muller, a spokeswoman for Apple, declined to comment.

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Apple Chief Executive Officer Tim Cook is working to shake up the iPad line. Sales of the tablets, which are Apple’s second-biggest product by revenue after the iPhone, have declined for two straight quarters amid a lack of new models and as consumers have instead gravitated to smartphones with bigger screens. Apple’s suppliers recently started manufacturing an updated 9.7-inch screen iPad, and were also set to enter production of a new version of the iPad mini, people familiar with the plans have said, with the devices set to be available later this year in time for the holiday season.

Tablet Growth

Apple is also increasing the screen size of the iPhone, people with knowledge of the plans have said. The company is holding an event on Sept. 9 to debut new bigger-display iPhones, the people have said. Those smartphones went into mass production in July, Bloomberg News reported in June. The iPhones will come in two new models: one with a 4.7-inch screen and another with a 5.5-inch screen, the people have said.

Shares of South Korea’s LG Display Co. (034220) and Taiwan’s AU Optronics Corp. climbed to their highest levels since 2012 in Asia trading. LG Display rose 1.4 percent to close at 35,200 won in Seoul. Innolux Corp. (3481) climbed its 6.8 percent daily limit to close at NT$15 in Taipei and AUO climbed 6.6 percent to NT$14.65.

Mobile Computing Escapes From the Phone

Apple is working on a bigger-screen iPad even as much of the growth in tablets has recently come from low-end, smaller-screen models. That helped Google Inc.’s Android mobile operating system become the top tablet operating system last year, with 62 percent of the market, according to researcher Gartner Inc. IPads that use Apple’s iOS mobile software had a 36 percent market share at the end of 2013, down from 53 percent a year earlier, according to the researcher.

IBM Partnership

Potential customers for larger-screen iPads are businesses, where the device could take on more tasks of a traditional laptop computer. In July, Apple unveiled a partnership with International Business Machines Corp. (IBM), and Cook said part of the pact’s rationale was to sell to corporations so they could “be a catalyst for future iPad growth.”

Jitesh Ubrani, an analyst at researcher IDC, said while tablet sales growth has slowed, he projects businesses, schools and governments will become bigger buyers of the devices. Those groups accounted for 16 percent of tablet sales in the second quarter this year, up from 13 percent a year earlier, he estimated.

“We’re expecting larger tablets to do better” in the enterprise market, Ubrani said in an interview.

To contact the reporters on this story: Tim Culpan in Taipei at tculpan1@bloomberg.net; Adam Satariano in San Francisco at asatariano1@bloomberg.net; Ian King in San Francisco at ianking@bloomberg.net

To contact the editors responsible for this story: Michael Tighe at mtighe4@bloomberg.net Pui-Wing Tam, Jillian Ward

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