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Apple company is upgrading its 9.7-inch iPad with a quicker ARM model and is publishing a smaller 7-inch iPad in 2011, relating to rumors. Digitimes information that Apple is set to release “an improved 9.7-inch iPad using a new ARM Cortex-A9-based processor and 512MB RAM in the first quarter of 2011.” Apple company is also prepping “a 7-inch iPad using the Cortex-A9 processor and an IPS panel with a resolution of 1024×768.”

What’s the New Technology?

The first iPad featured an A4 processor that Apple created on its own. If Digitimes’ rumors are true, Apple will switch to the latest ARM technology and integrate the Cortex-A9. ARM increased the Cortex-A9′s processor speed up to 2GHz last year, which could make the iPad a seriously effective system. The new processor also draws much less energy, thus improving the iPad’s so-so battery life.

The second update is the reuse of IPS (in-plane switching) panel technology for the iPad’s screen. In July, Digitimes stated that Apple was switching to OLED screens for the most recent iPads … that story has apparently transformed. IPS is a great kind of LCD for the iPad, as it gives the iPad an impressive wide viewing-angle of up to 178 degrees, whereas other LCD technologies tend to have narrower viewing angles, especially in the vertical direction. Plus it’s more affordable than OLED, allowing Apple to cut iPad costs.

What About the Costs Structure?

A 7-inch iPad will probably price a lot less than its first-generation brethren, as Apple is known for slashing item prices as the technology changes. Fast Organization notes this business pattern by reminding readers about the unique $500 to $600 iPhone that had no native apps. Then came the $200 cheaper 3G model with native app support. Then came the 3GS that had the same cost as the 3G upon its introduction but a quicker processor, which knocked the 3G’s price down to $100. Fast Company also says that people who buy first-generation Apple products are “suckers” and “lemmings with no self-control and extreme disposable income.” Ouch — but possibly true.

There was a big fallout from the iPhone cost cuts too — something Apple company will want to avoid if it overhauls the iPad pricing structure. In 2007 Steve Jobs announced that the iPhone would be $200 cheaper, setting off a slew of protests. A lawsuit was even filed over the price cuts. So if Apple wants to reduce prices on its iPad line, it better do so carefully, as early adopters have a tendency to lash out.

How Trusted Is the Source?

Digitimes is known for Apple rumors, some of which have proven blatantly false. Last November it claimed that the Apple tablet would have a $2,000 price tag. It’s also worth noting that Digitimes is quoting its own internal source — Digitimes’ senior research analyst Mingchi Kuo — therefore, it could be creating its own news and hype.

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