New iPads help Apple keep tablet lead

The company will continue to dominate the tablet market, despite competition from Amazon, Research in Motion and others.

By Trefis Nov 28, 2011 2:16PM
According to a report by BGR Media, Apple (AAPL) could launch a smaller iPad mini and an iPad 3 next year.

However, news reports conflict over the timing and the specifications of these devices. One report suggests that suppliers are already shipping millions of panels for the iPad 3. Another says that Apple will launch the iPad mini early next year and the more powerful iPad 3 by the second quarter.

We believe that irrespective of the specifications and timings, Apple will continue to dominate the tablet market despite competition from the likes of Amazon (AMZN), Research In Motion (RIMM) and Hewlett-Packard (HPQ) in the tablet market. The iPad accounts for around 12% of our $500 price estimate for Apple stock, and our price estimate is about 30% above market price.


See our complete analysis for Apple stock here


Trefis Break-Up of Apple Stock

iPad mini competes on lower price


Recently, companies have introduced lower-priced tablets to compete with Apple in the tablet market. Amazon introduced a $199 tablet named Kindle Fire while RIM also slashed its basic tablet pricing to $199 a few days back. This $200 tablet price point has become a different segment altogether in which Apple would like to compete. The iPad mini might be introduced by Apple keeping this in mind.


iPad Units Sales
iPad 3 to be more powerful?


We believe the iPad 3 will be a high-performance iPad with some attractive features such as voice recognition service Siri, presently an important feature of iPhone 4S. The new iPad might also have a high-resolution screen, as suggested by a few reports. Though unconfirmed, both the iPad mini and iPad 3 could ensure that Apple's dominance in the tablet market will continue and could provide a trigger for Apple's stock are more information emerges.


0Comments

DATA PROVIDERS

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.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

124
124 rated 1
282
282 rated 2
455
455 rated 3
624
624 rated 4
642
642 rated 5
665
665 rated 6
610
610 rated 7
460
460 rated 8
287
287 rated 9
167
167 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
KOGKODIAK OIL & GAS Corp10
TWXTIME WARNER Inc10
BBBYBED BATH & BEYOND INC10
FOXATWENTY-FIRST CENTURY FOX Inc CLASS A10
COPCONOCOPHILLIPS9
More

VIDEO ON MSN MONEY

ABOUT

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.