This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple's iPad Mini: What It Means for Investors (Update 1)

Updated from 9:47 a.m. EST to provide additional comments regarding prospects for Apple's stock in the tenth and twelfth paragraphs.

NEW YORK ( TheStreet) -- If you needed anymore proof that an iPad Mini exists, you're about to get it.

Apple (AAPL - Get Report) is reportedly getting ready to announce its iPad Mini soon. The Wall Street Journal is reporting that Apple's Asian suppliers have started production on the 7.85-inch tablet, which is rumored to be announced later this month. Apple may send out invitations as soon as Oct. 10 for the event, with the actual announcement coming Oct. 17.

Apple iPad Mini Rumor Roundup

With Apple announcing so many products this year (iPhone 5, new Macs, new iPad and now an iPad Mini), what does the new tablet mean for investors?

It could be big for investors, said Sterne Agee's Shaw Wu. "Like other products, lower price points tend to drive sales. An iPad Mini we think would likely drive incremental iPad buyers," Wu said in a phone interview with TheStreet. "There's going to be some cannibalism of iPad sales, but we think it makes a lot of sense." Wu rated Apple shares buy with price target of $840.

The smaller tablet may also be slightly thinner than the iPad 2, and have a similar thickness to the iPod Touch. It's also possible that Apple includes its new A6 chip, which is in the iPhone 5, or may use the A5X, which is in the new iPad.

Given cost constraints, it's possible that the smaller device will not have Long Term Evolution (LTE) capabilities or Retina Display, but Ironfire Capital President Eric Jackson doesn't think that will be a big deal.

"Selling more units equals more profits, which should be a boost to the stock," Jackson said in an email to TheStreet.

Former Apple CEO Steve Jobs once said there wasn't a market for a 7-inch tablet, that the reason Apple wouldn't make it is because "...we think the screen is too small to express the software." However, recent internal documents showed that Apple's senior vice president of Internet software and services, Eddy Cue, argued for a smaller tablet in early 2011, as there was shown to be a market for it.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMZN $425.47 0.00%
AAPL $129.62 0.00%
BKS $23.16 0.00%
GOOG $532.32 0.00%
FB $79.34 0.00%

Markets

DOW 18,041.54 -190.48 -1.04%
S&P 500 2,104.20 -21.86 -1.03%
NASDAQ 5,032.7510 -56.6110 -1.11%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs