The unveiling of the iPad Mini has left some industry analysts wondering whether a smaller iPad could cut into Apple's sales of its full-size 10in iPad.
Analysts were impressed by the hardware packed inside the newly revealed fourth generation iPad, but many questioned whether an iPad Mini could steer customers away from the traditional 10in tablet.
Managing director at Greenwich Consulting Fred Huet says that Apple needs to be careful not to cut into sales of the traditional iPad following the release of the iPad Mini.
"The nightmare scenario for Apple would be if their latest device was so convincing that it substituted potential new iPad customers to a smaller model on a lower price tier, effectively cannibalising existing sales," said Huet.
But research director at Gartner, Brain Blau, sees it a different way.
Blau told V3 that he sees the release of the iPad Mini as potentially opening up the door for consumers looking to buy multiple tablets.
He specifically points to the idea that the iPad Mini and the regular iPad are in different use classes.
"With the smaller iPad you have better travel usage, [but] with the larger iPad there is a performance advantage," said Blau.
Blau also noted that while the iPad Mini may not be priced in line with competing tablets, like the Android-powered Nexus 7, customers may be willing to pay up.
Blau said that Apple has a history of pricing its products in the high-end category, but it can do that because its products are designed so well.
"Apple does a great job on design. They really appeal to the sweet spot of [device] design," continued Blau.
"I'm continually amazed at how much they pack in to their devices."
Francisco Jeronimo, research manager IDC, said that although the firm had previously shied away from the smaller end of the tablet market, it had to make the move to compete with Google and Amazon - and its rivals should be concerned by their entry to the market.
"Despite the position that Steve Jobs took against the 7in tablets, Apple needed to respond, otherwise would risk losing an important share of the tablet market. This new product from Apple will disrupt the market again," he said.
"The iPad Mini is now the new category killer. Competitors will need to return to their R&D centres and find ways to develop even cheaper versions of their products and figure out how to profit from the content, while Apple will continue to make a profit from the hardware and the content."
The new iPad Mini will go on sale from pre-order on Friday and then ship on 2 November.
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