Analysts are continuing to bet on the much rumored iPad Mini, and those rumors have spiked after the announcement of Google’s seven-inch tablet, the Google Nexus 7.
Andy Hargreaves of Pacific Crest is predicting that the little 7.85-inch tablet will come equipped with 8GB of memory, a $299 price tag, and a fourth quarter release date.
According to Hargreaves research note, the $299 price will have a gross margin of 31 percent and will cannibalize 25 percent of the sales of the third generation iPad. He also predicts that Apple will do away with the $399 iPad 2 in favor of a 16GB iPad Mini.
“We estimate that Apple will sell 10 million 7.85” iPads in FQ1 (December 2012) and 35.2 million units in all of 2013,” he wrote. “Based on estimated component order volume, we believe our iPad Mini unit estimates are well within Apple’s production capacity.”
Hargreaves is also betting on a slight refresh to the new iPad in October, updating the screen, the camera, and the battery. Such an update would be highly unusual, as Apple has stuck to a yearly March/April release for all of its iPads, with no minor updates.
What do you think of his predictions? Is the iPad Mini coming this fall, and will Apple break tradition to update the iPad twice within the same year?