Rumored iPad mini could make a splash
The $200 tablet has become a niche market -- and Apple may be looking to compete in it.
According to one report, an iPad with a smaller screen is undergoing tests. We believe a smaller and cheaper iPad could be a good strategy and would help Apple compete with low cost tablet vendors like Amazon (AMZN).
The iPad accounts for about 13% of our $550 price estimate for Apple stock. Our price estimate is about 5% above the current market price.
Companies like Amazon and Research In Motion (RIMM) have introduced lower-priced tablets to challenge Apple in the tablet market. Amazon's Kindle Fire costs $199, and RIM slashed its basic tablet pricing to $199 a few weeks ago. The $200 tablet has become a niche segment, and Apple might introduce an iPad mini to specifically target it.
We believe the iPad 3 will be a high-performance iPad with new features like voice-recognition service Siri -- presently an important element in the iPhone 4S -- and a high-resolution screen. Both an iPad mini, though unconfirmed, and the iPad 3 would ensure Apple's continuous dominance in the tablet market and may provide a trigger to Apple's stock as more information emerges.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.