Report: Apple Tablet Will Be a Hit, Run iPhone OS

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An iTablet mockup from Graham Bower of Mac Predictions: http://www.macpredictions.com/2009/04/ipod-tablet-mockup.html

Apple’s upcoming iTablet will be a hit and run the iPhone operating system, according to new report out of Wall Street.

Analysts at Piper Jaffray say the upcoming iTablet will be released in 2010, will cost about $600, and will shift about 2 million units in its first year.

“Last week we spoke with an Asian component supplier that has received orders from Apple for a touch-screen device to be fulfilled by late CY09,” the report says. “This data point underscores our thesis that a tablet will likely launch in early CY10.”

The tablet will also run the iPhone/iPod Touch OS — not OS X, the report predicts. CoM believes the tablet will run OS X, which will be the “killer app” that cements the tablet’s success. Apple appears to be prepping Snow Leopard, the next version of OS X, for touchscreen devices.

“Apple could choose to simply run the current App Store apps on the larger device, with enough usable space for multiple apps to run (multi-tasking),” says the investment firm.

The report continues: “Key apps, like Safari and Mail, could be made larger to make use of the larger screen resolution, making Apple’s tablet appealing for more extended use, and the company could continue to leverage its primary asset in mobile computing, the App Store, in this scenario. We believe this is the most likely scenario given the success of the multi-touch platform and the App Store ecosystem, which could be accelerated with a tablet device.”

The analysis says Apple will reap extra revenue from the tablet that hasn’t been included in most forecast models.

“While at first glance this may appear to address a niche market, we believe the addressable market is larger than that of the Apple TV, of which Apple sold about 1.2m in its first year,” the report says.

Via AppleInsider.