Apple Inc. (Nasdaq: AAPL) unveiled a new affordable iPad at an education event in Chicago on Tuesday. The company says schools can pay just $299 for the new iPads, while the public can buy the devices for only $329.
The new iPads are designed for education, supporting Apple Pencil and apps for word processing, spreadsheets and presentations. These apps and functions have traditionally only been included in Apple’s higher-priced iPads.
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The new iPads will have a 9.7-inch screen, Touch ID, a HD FaceTime camera, an LTE option for faster wireless data, Apple’s A10 Fusion chip and 10 hours of battery life.
Last year, Apple dropped the price of its previous model 9.7-inch iPad to $329. The new $299 price for students is relatively affordable, but some analysts had speculated that Apple would be able to hit a $259 price point with the new device. When the price of a keyboard and Apple Pencil are factored in, the new iPads will still cost around $450, a higher price than many of the Chromebooks produced by Alphabet ( GOOG, GOOGL) subsidiary Google.
Apple has made schools a priority with its new suite of products as it competes for classroom device market share with Google and Microsoft Corp. ( MSFT).
Apple is making its augmented reality capabilities a centerpiece of its educational push. The company says students can use Boulevard’s AR app to virtually tour museums, while the WWF app allows students to virtually interact with wildlife. The Froggipedia app even allows students to virtually dissect a frog using Apple Pencil.
Apple is also launching ClassKit, a new software development kit for the classroom. In addition, the free Schoolwork app will allow teachers to easily track assignments, progress and grades. Educators also get up to 200 GB of free iCloud storage and a $10 discount on an Apple Pencil.
If they are successful, Apple’s new iPad and education initiatives could be good news for investors. However, analysts say Apple’s stock still lives and dies by the iPhone in the near-term and its services segment in the long-term.
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“We believe near-term demand issues (iPhone X) do not change our long-term bullish thesis on Apple, and the underlying demand/upgrade drivers for the next 12 to 18 months remain intact,” GBH Insights head of technology research Daniel Ives says.
GBH Insights has a “highly attractive” rating and $205 price target for AAPL stock.
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Apple Inc. (AAPL) Targets Schools With New $299 iPad originally appeared on usnews.com
