Ryan Jones presents an interesting look at the iPad’s pricing umbrella and why it points to a new 7.85"-inch model.
He notes that Apple has used three main options to fill such an umbrella in the past - retain old hardware at lower cost, find partners to subsidize the hardware, or build a new device. Where does that leave Apple with the iPad?
They’ve already used the older hardware strategy, so the remaining two strategies are 1) get subsidies or 2) create a new product line.
My bet - new iPad.