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New part makers join in making iPad 3 to help drop prices

updated 07:40 am EDT, Tue July 26, 2011

iPad 3 may be more cost efficient with Taiwan ICs

Manufacturing sources said Tuesday that Apple was turning to new integrated circuit suppliers to help in "adjusting the cost structure" for the iPad 3. Capella Microsystems, Integrated Memory Logic, Novatek Microelectronics, and Richtek Technology have all supposedly been asked to supply key chipsets, Digitimes heard. Capella would provide ambient light sensors, IML would provide gamma/Vcom buffers, Novatek would provide LCD drivers, and Richtek would supply integrated power management chips.

The aim would be to better compete against a rush of rival tablets arriving in the second half of 2011. It's implied that Apple would either be lowering the price or using any cost savings to allow for more feature upgrades. Many expect the next iPad to introduce a 2048x1536 display that could put pressure on Apple to keep costs in check.

Apple may be pressured from both the high and low ends of the tablet market. Amazon is going low with a frugal design that could cost significantly less in return for less features. Others are expected to start using quad-core processors like NVIDIA's Kal-El (Tegra 3) and will put pressure on Apple to upgrade to processors like the A6 as soon as possible.

No mention has been made of when the component makers would come into play, but without indication of the companies being in active production soon, the expected early 2012 release is more likely.

by MacNN Staff



  1. Inkling

    Joined: Dec 1969


    Apple v. Amazon

    Amazon won't just undercut the iPad's price. They'll build on their strengths. Apple stresses both creation and consumption. After all, it has lots of third-party apps. Amazon will probably stress consumption because it has more content. Amazon's tablet may not be as good for writing a book or creating a home movie, but it might offer a better total total ecosystem for reading ebooks and watching movies. The former is already true for the Kindle.

    My guess is that there'll be some equivalent of the Kindle's free cellular data. With so many Netflix users ticked off at the recent price increases, free streaming of some movies could prove popular. And Amazon could offer to store the movies you've bought and deliver them on-demand. That's what they already do with ebooks.

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