Will the Kindle ignite Apple's tablet strategy?
Amazon's success could prompt a major redesign of the iPad.
According to DigiTimes, Apple could come up with a 7.85-inch iPad next year in order to overcome the challenge posed by the 7-inch Kindle Fire tablets, even as other competitors such as Research in Motion (RIMM) and Motorola Mobility (MMI) continue to struggle in the tablet market.Do 7-Inch Tablets Stand a Chance?). This theory stemmed partly from the perception that the 7-incher is a tweener -- too big to be a smartphone and too small to be an effective tablet. If Apple indeed comes up with a 7- to 8-inch tablet, it will be a significant design change from the current 10-inch screen of the iPad.
Speculation around the specifications of upcoming iPads has picked up in the last few weeks with various sources claiming that Apple could come up with a revamped iPad 3 and a cheaper iPad mini next year. (See New iPads Could be the Next Trigger for Apple Stock)
We believe that the iPad 3 will be a high performance iPad with some attractive features such as voice recognition service Siri, presently a key feature of iPhone 4S. The new iPad might also have a high resolution screen. On the other hand, Apple could launch a cheaper version of the iPad with fewer features without reducing the screen size dramatically.
Our $500 price estimate for Apple stock is about 30% above market price.
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.
The solid report comes a month after the retailer closed all of its Canadian operations.
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.