Whatever Apple does will significantly affect its bottom line, as smaller tablets are expected to comprise the majority of sales not only this year, but capture ever-larger shares in the near future.
Earlier this week, NPD DisplaySearch updated its tablet forecast, saying that devices with screens smaller than 8-in. will account for 59% of the market this year and climb to 63% of all sales in 2015.
"Smaller tablets are important, because they will encourage adoption in emerging regions," said DisplaySearch analyst Richard Shim in a statement. "Smaller screen sizes translate to lower-priced options, since display panels tend to comprise just over a third of the total cost of a tablet, which makes them attractive in price-sensitive markets."
Sign up for Computerworld eNewsletters.