This Day On The Street
Continue to site
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

Here's How Much the iPad Mini Won't Cost

NEW YORK ( TheStreet) -- It's all but certain now that Apple (AAPL - Get Report) is going to announce an iPad Mini later this month, but what isn't certain is how much it will cost.

Leaked images show that the iPad Mini will start at $249 for the 8 GB, then go all the way up to $649 for a 64 GB version of the device with cellular connectivity, presumably through AT&T (T) and Verizon (VZ). ( Sprint (S) carries the iPhone, but not the iPad).

TheStreet recently ran a poll asking readers how much they think the iPad will cost. Just more than 30% of those surveyed expect Apple will charge $349 for the iPad Mini.

While there may be multiple sizes of the iPad Mini and perhaps even ones with cellular connectivity, it's hard to see Apple going as high as 64 GB for the device, namely since it would cannibalize sales of the iPad that much more.

Barclays Capital analyst Ben Reitzes, among several other Wall Street analysts, have made that point.

"Ten million units at a $250 ASP would amount to about $2.5 billion in revenue for Apple, not including some cannibalization of existing iPad and iPod Touch sales," Reitzes wrote in a analyst note. He rates Apple overweight with a $810 price target.

There is already going to be some cannibalization of the traditional 9.7-inch iPad by the smaller tablet. That much is assumed.

Apple has traditionally cannibalized its own products (iPhone/iPod, iPad/MacBook), but that's either been feature cannibalization or price cannibalization based on a different form factor. Pricing the iPad Mini as high as $649 would cannibalize the larger iPad, as well as make less competitive with other 7-inch tablets, such as those from Amazon (AMZN - Get Report) and Google (GOOG - Get Report).

Apple has by and large never competed with competitors on price, so launching a 7-inch tablet isn't going to be about pricing itself to match competitors. It just doesn't make sense to cannibalize one of its own products at essentially the same price. That isn't the Apple way.

One thing that is certain is that Apple is placing bets on the iPad Mini becoming its next hit product. Reports earlier this month suggested that Apple has placed orders for more than 10 million units of the iPad Mini. Barclays' Reitzes also used the 10 million figure, so there appears to be credence to this level.

It looks like we'll have to wait until Oct. 23 to find out for sure.

Interested in more on Apple? See TheStreet Ratings' report card for this stock.

-- Written by Chris Ciaccia in New York

>Contact by Email.

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $111.31 0.00%
AMZN $537.48 0.00%
GOOG $645.44 0.00%
FB $92.80 0.00%
TSLA $241.46 0.00%


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs