Apple Releases New Student iPad, But Rumors Of A $259 Model Prove Unfounded

Apple Inc. AAPL introduced a $299 iPad for students with Apple Pencil support on Tuesday, but Apple enthusiasts hoping for a 3-D powered tablet may need to wait a few more months.

What Happened

Apple's new 9.7-inch tablet includes Touch ID, a high-definition camera, 10 hours of battery life and an 8-megapixel rear camera powered by an Apple A10 Fusion chip, The Verge reported. The tablet is marketed toward students who will receive the discounted $299 price; the tablet will be available for purchase by consumers for $329.

Why It's Important

Heading into Tuesday's event, a rumored $259 iPad was expected to be announced, The Verge said. The student iPad is still "a little more affordable" for students and teachers, the report said. When including add-on options like the Apple Pencil and a keyboard, the iPad geared toward students and teachers could cost $450. This would make it more expensive than rival Chromebook tablets, which include styluses and run on the new Chrome OS.

What's Next

Apple is "not yet ready" to include 3-D sensing on large screen iPads, Rosenblatt Securities' Jun Zhang said in a Wednesday note. The company could launch a new iPad Pro with 3-D sensing capabilities in the third quarter, but this doesn't change the analyst's iPad Pro production estimate of around 6 million units per quarter, he said. 

Rosenblatt maintains a Buy rating on Apple with a $180 price target. 

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Photo courtesy of Apple.