Apple Updates iPad Pro and Hits New Price Points for iPad, Apple TV 4K. One of Them is a Bargain.

In a series of press releases, Apple launched a new iPad, iPad Pro, and Apple TV box; the top configuration of the Apple TV 4K one that can act as a Matter and Thread hub.

Apple TV 4K Edges Down in Price, But The $150 Version Is the One To Buy

Apple’s streaming media box has long had a difficult position in the market: its core capabilities are fundamentally similar to Roku and Amazon products that cost less than half as much. Apple’s attempt at justifying the additional expense by making Apple TV a casual game console is a tough sell without a game controller or unique content, and its IoT ambitions have always been narrowly focused on its own ecosystem. That still left Apple TV as a reasonable purchase for those who preferred Apple’s user experience, needed specific nerdy functionality (like forcing a TV into Dolby Vision mode), or were deeply enmeshed in Apple’s ecosystem. In particular, the old Apple TV was the best way to remotely control HomeKit devices from outside the house.

With the 2022 Apple TV 4K, Apple doesn’t radically change its competitive position for consumers who just want a quick way to watch Netflix, but the $130 model does bring 4K output down to a new low for Apple. It’s still worth pointing out that Amazon charges just $40 for a 4K Fire TV stick with Dolby Vision, HDR10+, and a voice remote control; Amazon’s most expensive version with WiFi 6 is just $55, and that’s without sale discounts. As capable as the MediaTek chips are inside Amazon’s sticks (and Roku’s, for that matter), Apple’s A15 Bionic undeniably provides more horsepower, though it is hard to imagine most consumers ever using that power. Apple extends its A/V geek cred by adding HDR10+ support – which should unlock significantly better picture quality on Samsung TVs. The Apple TV 4K remote control also gets a small but welcome change that even non-enthusiasts will notice: it now charges via USB-C instead of Lightning.

The $130 model comes with perfectly adequate 64 GB of storage, but the real bargain is the 128GB configuration for just $20 more. Unless you actually use the Apple TV for gaming, it’s hard to recommend the higher end model for its storage capabilities – the vast majority of Apple TV content is streamed, not downloaded. However, the $150 model also includes gigabit Ethernet, Thread networking, and the promise of Matter support in the future. This makes the Apple TV 4K WiFi + Ethernet an affordable and subscription-free way to extend control of HomeKit home automation and security devices to non-HomeKit thermostats, sensors, and other consumer IoT devices in the years to come. Wink and SmartThings have proven that consumers don’t want to buy dedicated IoT hubs, but HomeKit, Thread, and Matter support on top of Apple TV 4K’s prodigious TV streaming capabilities create a strong value proposition. Techsponential looks forward to testing one at launch.

New iPad Slots In Between Old iPad and iPad Air

At one point in time, Apple had iPods at every price point from $69 to $599. Apple’s newest $450 iPad fills the gap between the $330 base model that remains available and the $600 M1-based iPad Air. The new iPad will almost certainly become the base model down the road; for now, it serves as a way for people to get upgraded no-home-button design, USB-C, and a slightly more modern A14 Bionic processor for under $500. The cellular model now includes 5G with extensive band support. Of course, if you kit out the new iPad with a (1st gen) $100 Pencil and the $250 Surface-like keyboard cover with kickstand, the total cost comes to $800. Apple often sells higher volumes of its most expensive products. However, in this case, the base $330 model is still the best value for casual tablet use and may outsell its fancier siblings.

Apple’s iPad line isn’t too hard for consumers to parse, but the accessory situation is a confusing mess. Carriers and retailers will need to make sure that consumers understand what Pencil and case go with each device or they’ll end up with lots of returns.

New iPad Pro Gets a Processor Bump

Apple changed very little on its highest end iPad, the iPad Pro. The display remains the same and, as before, only the 12.9” gets mini-LED backlighting. However, Apple couldn’t let the iPad Air have the same processor as the Pro, so the new iPad Pro now has an M2 processor along with WiFi 6E and 5G on cellular models. It is certainly possible to make the argument that Pro customers are most likely to get the most out of the silicon improvements and iPadOS’ new multitasking features, but nothing in the iPad Pro fundamentally changes its place in the computing landscape. The iPad Pro remains one of the best devices to consume content – provided cost is no object – and a more focused alternative to laptops – although only for some workloads, and with no cost advantages.

To discuss the implications of this report on your business, product, or investment strategies, contact Avi at avi@techsponential.com or +1 (201) 677-8284.