The 7 inch iPad

All these ~7" iPad discussions seem to me to be really fantasies about a cheap iPad that try to justify it with a size argument that reckons if it were smaller it must cost less. Most forget that a 32 GB iPod touch costs $299 and there is not a 16 GB touch that costs $100 less – it’s an 8GB model, and a 16GB iPad 2 (non-retina display) is $399.

The 32GB wifi retina iPad is $599 and a 32GB wifi retina iPod touch is $299. I’m going to scale cost in between linearly with display area, which isn’t perfect, but it roughly captures display size and battery size. I get $434 for a 7" 4:3 display, so call it $399-$449. If we use iPad flash price deltas, then you could say a 16GB model could be $299-$349. A flaw in my reckoning is that new iPad has an A5X and 1GB RAM and the touch has an A4 with 256MB RAM. A hypothetical iPad mini might use just an A5 and 512MB RAM, so we’ll go with the higher end of the range and say $349.