By Lorraine Luk
HONG KONG- Apple Inc. suppliers have been told to start
production of a larger-screen iPad in the second half of this year
as the U.S. tech giant wrestles with new designs and features for
the enterprise market, people familiar with the matter say.
The Cupertino, Calif., company had originally told suppliers
that it wanted to start mass production of the 12.9-inch iPad in
the first quarter of 2015, the people said.
Apple is now considering adding USB ports and adopting so-called
USB 3.0 technology, a much faster version that promises to transfer
data up to 10 times as rapidly as current USB ports, one of the
people said. It is especially useful when users are transferring
large amounts of data, such as backing up computers to
USB-connected hard disks. Currently, Apple's 9.7-inch iPad and
7.9-inch iPad Mini don't come with a USB port.
"Apple has continued to rework some of the features of the
larger iPad. It is now considering the faster technology for data
synchronization between the larger iPad and other computing
devices," said the person.
"Apple is also working on technology to speed up the iPad
charging time, but it remains uncertain if the final design will
have these new features."
The company has also been considering adding ports to connect to
a keyboard and mouse, the people said.
Apple, which works with suppliers to test new technology and
designs all the time, could opt not to proceed with some of the
features when it starts mass producing the device later.
Apple declined to comment.
"I am optimistic that this (larger-screen iPad) will be a
positive driver (for Apple) to break into the enterprise market,
where much of the tablet growth will come from in the coming years,
" said Peter King, analyst at Strategy Analytics.
Apple's plan for a larger-screen iPad comes as its tablet sales
continue to decline. The company said in January it sold 21.4
million iPads in the three months ended Dec. 27, down 18% from a
year earlier. Strong sales of Apple's larger-screen iPhones has
been cannibalizing its iPad sales, analysts say.
The company's share of the global tablet market slipped to 28.1%
in the fourth quarter from 33.1% a year earlier, according to
research firm IDC. Worldwide tablet shipments also fell for the
first time in the fourth quarter as consumers refrain from
upgrading due to a lack of hardware innovation.
However, the rise of Apple's mobile devices in the workplace
provides opportunities for the company. It has started courting the
enterprise market though its partnership with International
Business Machines Corp. which has agreed to sell iPhones and iPads
to its corporate clients.
In December, Apple and IBM announced the first wave of
made-for-business applications targeting banking, retail,
telecommunications and governments.
Separately, Apple also plans to broaden its product offering
with a new 12-inch MacBook Air, people familiar with the matter
said.
Earlier this year, Apple's suppliers started mass production of
a 12-inch MacBook Air, featuring a higher resolution display, they
said.
The current MacBook Air comes in two different sizes: 11-inch
and 13-inch models.
While suppliers are gearing up to ship the new 12-inch MacBook
Air in large quantities in the second quarter, Apple's launch
schedule remains unclear, the people said.
Daisuke Wakabayashi in San Francisco contributed to this
article.
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