CUPERTINO, Calif. (TheStreet) -- Apple (AAPL) may be planning to launch a low-price "mini" iPad in early 2012, according to Ticonderoga Securities analyst Brian White, who says that the tablet could present a challenge for Amazon's (AMZN) new Kindle Fire.
"Our research is pointing to the unveiling of a lower-priced iPad in first few months of 2012," White explained in a note. "That is aimed at expanding the company's market potential by tapping into a more price sensitive consumer segment."
|Apple may launch a low-price iPad in 2012, according to Ticonderoga Securities analyst Brian White.|
"Essentially, this 'iPad mini' will also fend off the recently announced Amazon Kindle Fire that addresses the low-end tablet market with a $199 price tag," he wrote.
Amazon CEO Jeff Bezos aimed some careful digs at Apple's iPad during the Kindle Fire launch earlier this month. The Internet giant, he explained, is "building premium products at non-premium prices."Apple's cheapest iPad 2 is $499. White, however, does not expect Apple to launch a smaller tablet than the 9.7-inch touchscreen iPad. "The 'mini' refers to a reduced price point of this iPad and not necessarily the size of the device," he said. "We believe this lower-priced iPad could be priced in the mid-to-high $200 range." The low-price iPad will likely be followed by a more powerful, standard price iPad 3 in the second quarter of 2012, he added. Apple has typically avoided offering cut-price versions of its products, although the gadget maker recently cut the price of its iPhone 4. The company also announced that its iPhone 3GS will be free with a two-year contract. Up to this point, though, Apple has given no hints of lower-end tablets or changes to its iPad pricing. The consumer tech giant has already sold more than 28 million of the devices and enjoys a dominant position in the tablet space. Shares of Apple rose $4.26, or 1.06%, to $406.45 on Thursday. Apple declined to comment on this story when contacted by TheStreet. --Written by James Rogers in New York.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV