Will Apple Strike iPad Mini Gold?
Deutsche Bank analyst Chris Whitmore has said Apple (NASDAQ:AAPL) was making a well-timed entry into the low-priced tablet segment with its iPad Mini and that at a possible starting point of $250, the new product would be incredibly successful.
“The next wave of growth in tablets will be characterized by lower price points and mass adoption,” Whitmore wrote in a note to clients on Monday, according to CNN Money. “If Apple is able to price the iPad Mini at ~$250, the product will be a barnburner; especially during this holiday season.”
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Apple is expected to unveil the smaller iPad at a media event today. While Google (NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) already have seven-inch tablet devices that start at $199, Apple’s market leading full-sized iPad starts at $499.
“Apple is uniquely positioned in terms of brand, ecosystem, developer support, etc. to capitalize on the next wave of tablet adoption and capture the lion’s share of industry profits,” Whitmore added. “We believe the iPad Mini will enable Apple to extend it competitive lead as Android remains fragmented, Microsoft (NASDAQ:MSFT) RT is not compatible with Windows 8, and PC OEMs haven’t put forth an iPad killer.”
Whitmore reiterated his buy rating and an $850 price target on Apple stock.
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