Will Apple launch a cheaper iPad?

An analyst says a more affordable model could be in the works for early 2012 that could challenge Amazon's Kindle Fire.

By TheStreet Staff Oct 13, 2011 2:22PM

By James Rogers, TheStreet TheStreet


Apple (AAPL) may be planning to launch a low-price "mini" iPad in early 2012, according to Ticonderoga Securities analyst Brian White, who says that the tablet could present a challenge for Amazon's (AMZN) new Kindle Fire.


"Our research is pointing to the unveiling of a lower-priced iPad in first few months of 2012," White explained in a note. "That is aimed at expanding the company's market potential by tapping into a more price sensitive consumer segment."


"Essentially, this 'iPad mini' will also fend off the recently announced Amazon Kindle Fire that addresses the low-end tablet market with a $199 price tag," he wrote.


Amazon CEO Jeff Bezos aimed some careful digs at Apple's iPad during the Kindle Fire launch earlier this month. The Internet giant, he explained, is "building premium products at nonpremium prices."


Apple's cheapest iPad 2 is $499.


Related Articles

White, however, does not expect Apple to launch a smaller tablet than the 9.7-inch touchscreen iPad. "The mini refers to a reduced price point of this iPad and not necessarily the size of the device," he said. "We believe this lower-priced iPad could be priced in the mid-to-high $200 range."


The low-price iPad would likely be followed by a more powerful, standard-price iPad 3 in the second quarter of 2012, he added.


Apple has typically avoided offering cut-price versions of its products, although the gadget maker recently cut the price of its iPhone 4. The company also announced that its iPhone 3GS will be free with a two-year contract.


Up to this point, though, Apple has given no hints of lower-end tablets or changes to its iPad pricing. The consumer tech giant has already sold more than 28 million of the devices and enjoys a dominant position in the tablet space.


Shares of Apple were rising $4.26, or 1.1%, to $406.45 on Thursday.

Apple declined to comment for this story.

Oct 13, 2011 3:57PM
Oct 13, 2011 9:44PM
its not an ipod touch. if you read it its a lower grade i pad. so its the same screen size. How Hard is That To Understand. 
Oct 13, 2011 10:39PM
So, its an ihalfPad.  Interesting.  I might  buy one unless I get the kindle Fire first.
Oct 13, 2011 5:37PM
So what they are making an Ipod touch???? Ipads are overgrown Itouch so what they going to meet in the middle???? I dont get why people waste money on this crap. Hell while apple is at it why dont we do a Super pad make it 65" touch screen tv with the iOS
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


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.


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.

125 rated 1
264 rated 2
485 rated 3
679 rated 4
640 rated 5
617 rated 6
632 rated 7
493 rated 8
276 rated 9
153 rated 10

Top Picks

TAT&T Inc9



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.