"Why" an iPad "Nano?"

There are several questions that have to be answered, from Apple's perspective, about why it would want to release a smaller iPad, such as the rumored eight-inch device. 


Even if there is a perceived market,  there are some technology questions, such as battery life, or the ability to support Retina display. Perhaps the biggest issue is whether Apple believes there is a substantial incremental opportunity, though. 


The precedent is the iPod, of course. For all rival suppliers, it will matter greatly whether the tablet market develops on the iPod or iPhone model. If the former, Apple "owns" and "defines" the market. In the latter case, there is room for other suppliers. 


For everybody but Apple, the issue is whether competing with Apple is actually feasible, not in the sense of ability to produce and sell a tablet, but whether any other supplier will be able to displace Apple in the "tablet" market in terms of mind share or market share. 


Today, Apple has about 78 percent market share in the MP3 market.