Apple's stock rallies on news of probable Apple iPad mini event

Apple's stock rallies on news of probable Apple iPad mini event
Shortly after the launch of the Apple iPhone 5, Apple shares peaked on September 21st at $705.07. The stock then proceeded to tumble 11.5%, hitting a bottom of $623.85 on Monday. On Tuesday, after word spread that the Cupertino based tech titan would be holding an event on October 23rd, the stock popped $15.03 to close just shy of $650. While Apple did not come right out and say so, it is expected that the long awaited Apple iPad mini will be introduced at the event. Apple did hint at the subject of the gala when it wrote, "We've got a little more to show you" on the invitation.

Apple hopes to compete in the fairly new category of low priced 7 inch tablets that consists of the Amazon Kindle Fire HD and the 8GB Google Nexus 7. Both of those devices are priced at $199. Last holiday season, the OG Amazon Kindle Fire outsold the Apple iPad 2, which was the latest Apple tablet at the time. While rumors of a 7.85 Apple iPad mini date back to before last December, the experience might have been the straw that broke the camel's back. During the recent Apple vs. Samsung patent battle, an email was discovered from January 2011 referring to a story in GigaOm called "Why I just dumped the iPad (Hint: Size Matters)". In the email, Eddy Cue, who was head of Apple's Internet software and services at the time, told other Apple execs that Steve Jobs was warming up to the idea of a 7 inch iPad prior to his passing. That was quite a change as Jobs had said in October 2010 that after extensive testing, it was decided that Apple would never produce a 7 inch tablet. One of Jobs' reasons was his belief that a 7 inch tablet could not support great apps.

Apple's stock might have moved too soon. The most important information about the alleged Apple iPad mini, the price, needs to be disclosed. If Apple brings the price to the $200 level to compete with Amazon and Google, Apple will not make any money or will lose money on the device. At $199, Amazon breaks even on the the new Amazon Kindle Fire HD. Analysts say that a price in the range of $299 to $349 is needed to keep the margins the same as with the larger iPad models. And with Apple's stock as sensitive as it is right now, this could be an inflection point. Price the iPad mini too low and the stock could undergo some long needed profit taking to get the weak holders out of the stock. The company is the most valuable firm in the world but nothing grows to the sky forever. For Tuesday, at least, the Apple iPad mini saved the day for stockholders, many of whom are beginning to get nervous.

source: SlashGear

Related phones

iPad mini
  • Display 7.9" 1024 x 768 pixels
  • Camera 5 MP / 1.2 MP front
  • Processor Apple A5, Dual-core, 1000 MHz
  • Storage 64 GB
  • Battery 4440 mAh



1. sum182

Posts: 229; Member since: Nov 19, 2011

Its not an Ipad mini....its called an "Iphone"

13. PhoneLuver

Posts: 481; Member since: Jul 05, 2010

What goes up, must.....

2. wendygarett unregistered

you may grab my money anytime Apple :)

16. SonyXperiaNexus

Posts: 374; Member since: Oct 01, 2012

who the hell wrote this s**t???

21. anywherehome

Posts: 971; Member since: Dec 13, 2011

almost all the newspapers, because of facts ;)

3. OptimusOne

Posts: 694; Member since: May 22, 2012

apple doesn't realize that this "ipad mini" will destroy their ipod touch business right?

4. rahulcena5565

Posts: 57; Member since: Nov 01, 2010

I doubt it will destroy their iPod Touch business because the iPad Mini is suppose to be at around 7.85', the scary part is that it may destroy the Competition in the 7' league.

6. Lucas777

Posts: 2137; Member since: Jan 06, 2011

same was said about ipads and macs...

8. wendygarett unregistered

Don't worry, I decided to get both anyways :)

9. OptimusOne

Posts: 694; Member since: May 22, 2012

well i have both. i have itouch, ipad i like my nexus one and iconia a100 the best thoutgh

5. rahulcena5565

Posts: 57; Member since: Nov 01, 2010

End of the day, the iPad Mini doesn't have my money if it's not Retina.

11. anywherehome

Posts: 971; Member since: Dec 13, 2011

more pixels more Adidas? maybe you should consider usability: maps, voice searching, widgets.....look like usual Apple client: more pixels, more design, more money :)

12. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Style over Substance prevalis in that crowd.

7. nicholassss

Posts: 368; Member since: May 10, 2012

Taking their cues from the recent success of the phablet craze apple is actually going to drop a 7.85in iPhone on us.

14. theindianguy

Posts: 90; Member since: Sep 30, 2011

I have a feeling that the Ipad mini will probably be selling for 399. Goes well with the ipad starting from 499.

18. jmoita2

Posts: 930; Member since: Dec 23, 2011

You are probably right. If they price it that high, it will surely be a flop...

15. pikapowerize

Posts: 1869; Member since: May 03, 2012

i actually love the size of the iPad mini than the nexus or any other 7" tablet... not too small and not too big!! thats why i love to hold galaxy tab 7.7 coz of its size! (yes, even i hate samsung, i love the size of galaxy 7.7..)

17. jmoita2

Posts: 930; Member since: Dec 23, 2011

I'm buying kettle popcorn in anticipation of the giant crash on Apple's shares...

19. hamboza

Posts: 25; Member since: Oct 17, 2012

I hate for anyone to crash be it Apple or otherwise, cause my Tech-Rush feeds off competition...

20. InspectorGadget80 unregistered

It's going to called a GIANT IPOD TOUCH and will look the same year after year after year till people realize Apple can't change their design then their stock will drop

* Some comments have been hidden, because they don't meet the discussions rules.

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