Apple’s stock suggests a soon coming Apple iPad mini event
Shortly after the launch of the Apple iPhone 5, the company’s shares peaked on September 21st at $705.07, yet then the stock slowed down by 11.5%, hitting a bottom of $623.85 on Monday. On Tuesday, however, news spread that the Cupertino based tech titan would be holding an event on October 23rd. Naturally, the stock popped $15.03 to close at $650. That’s how it goes in the world of big businesses, one would say.
Now, even if Apple has not stated it officially yet, it is expected that the announced event is to be dedicated to the long expected Apple iPad mini. It would be right on time!
By introducing the iPad mini, Apple clearly hopes to compete with the other low priced 7 inch tablets, such as the Amazon Kindle Fire HD, and the 8GB Google Nexus 7. Both of those devices are priced at $199. Now, we’re waiting for Apple to disclose the price of their iPad mini. Would it be competitive enough? If Apple brings the price to the $200 level to compete with Amazon and Google, they will not make any money, or may even lose money. Analysts predict that a price in the range of $299 to $349 is needed to keep the margins the same as with the larger iPad models. Therefore, if they price the iPad mini too low, the stock could undergo some long needed profit taking to get the weak holders out of the stock.
Tuesday news about the launch of the Apple iPad mini however, saved the day for stockholders.