How Will the iPad Mini Impact Apple’s Stock Price?

We’re just a few days away from another Apple Media event.  Reporters and news agencies have received an invitation to visit the team at Apple to unveil something new.  The invitation explains that Apple has “a little more to show”.  Since it’s been just over a month since Apple reveled and started selling their iPhone  5 and updated iPods it does seem a bit early for them to be announcing yet another product.  Industry experts and insiders believe that the announcement will be a new smaller iPad, the iPad Mini.

There are a number of rumors circulating about the size and different features of the iPad mini. My guess is that it will be very much like the iPad and iPhone but sized in-between, with an in-between price. I believe, the most important feature will be the iPad Mini price point.

Apple took the tablet market by storm when it first launched the iPad. It succeeded where many other manufacturers failed and created a market around touchscreen computers. Google’s Android operating system has been used for the past few years to try and gain some of this new market share around tablets but failed to make much of a dent. However, when Amazon branched off their own version of Android and combined their large content library with a simple but sexy tablet, the Kindle Fire, heads started to turn.

This smaller screened tablet sold quickly and well and there is no doubt in my mind that Apple took notice. As the Kindle Fire continued to sell, I believe the Apple executive team decided they needed a smaller screen, with a smaller price tag to keep as much control of the tablet market as they can. The iPad Mini is clearly a response to the success of the Kindle Fire.

I expect the iPad Mini to be priced $50 to $99 more than the iPod Touch. This will put the iPad mini at a few dollars more than the Kindle Fire but I believe bring the price to a competing point with the Amazon product. There is no doubt in my mind that holiday shoppers will seriously consider spending a few dollars more to get an Apple product that shares a catalog of apps with their other Apple products. And I expect that Q4 will be filled with iPhone, iPad, iPad Mini, and iPod sales.

Impact on Stock Price

I’m sure that a few day traders are excited about the upcoming announcement as Apple’s stock shifts quickly during these announcements. Those investors still looking to learn to trade may want to avoid Apple for short term investments.

Initially, if the price of the iPad mini is low enough, I imagine the Apple stock will have a quick and significant improvement. You’ll want to watch the stock market on your iPhone during the announcement to see which way the stock shifts.

For the long run, expanding their holding on the continually growing tablet market will have a significantly positive impact on Apple’s profit margins and stock price. Each new device sold leads to more app purchases which leads to an increased likelihood that users stay with Apple for life.

What do you think will be the impact of the iPad Mini on Apple’s future?