• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

2

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

3

As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales

1

As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

2

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

3

As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales

Apple’s newest iPad: What to expect on Oct. 23

By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
October 21, 2012, 11:25 AM ET

The press invitation. Source: Apple Media Events

FORTUNE –It’s the worst-kept secret in Silicon Valley.

Even before Apple (AAPL) issued press invitations for Tuesday’s special event in San Jose, anybody who was paying attention seemed to know that the company was preparing to launch a new, smaller iPad in time for this year’s holiday gift-buying season.

Every day the Apple rumor sites are filled with fresh speculation about what the new device looks like and how much it might cost. But to get ready for Tuesday’s unveiling, we thought we’d stick to what the Wall Street analysts are saying. A sampling:

Name: Although the bloggers have toyed with a variety of names — from iPad Mini to iPad Air to simply iPad — all the analysts’ notes we’ve read call it the iPad mini. The only disagreement is whether or not to capitalize the M.


Click to enlarge. Source: Cult of Mac

Dimensions: Piper Jaffray’s Gene Munster is still hedging his bets, calling for a device with a 7-to-8-inch display, but most analysts — and all the tech press — have zeroed in on a screen measuring precisely 7.85-inches on the diagonal, yielding an area 40% larger than Amazon’s (AMZN) Kindle Fire and one third smaller than the original 9.7-inch iPad.

Screen resolution: No disagreement here. To keep the price down, the smaller iPad will sport fewer pixels (probably 1024 x 768 @ 163 dots per inch) than the “Retina” display (2048 x 1536 @ 264 dpi) of the third-generation iPad.

Memory: There’s general agreement that the entry-level model will come with 8GB of flash memory — barely enough to hold the operating system, a smattering of apps, a handful of songs and maybe a video or two. (By comparison, the entry-level iPhone starts at 16GB and the iPod touch at 32GB.) To be as useful as the previous generations of iPads, customers will probably want to step up to 32GB or 64GB, which may be what Apple is counting on to achieve its customary profit margins (see below).

Entry price: There is considerable disagreement about how low Apple has to go for the smaller iPad to become what Sterne Agee’s Shaw Wu likes to call “the competition’s worst nightmare.” Wu doesn’t believe it has to sell for as little as $199 — the price of Amazon’s Kindle Fire HD and Google’s (GOOG) Nexus 7. He’s looking for something in the $299 to $349 range for 8GB, Wi-Fi only. Piper Jaffray’s Munster and Topeka Capital’s Brian White think the company might, in Wu’s words, “go for the kill” with an entry price as low as $249. Janney’s Bill Choi follows what seems to be the Street’s consensus: “a premium product at a premium price point” of $299-$399.

Extras: None of the analysts we read addressed the cost of adding extra memory or a cellular radio, but if history is any guide this is where Apple will look to fatten its profit margins. We’ve seen hypothetical price charts in which Apple charges $100 for every bump up in memory (to 32GB and to 64GB) and from $100 to $130 for LTE. In one scenario, the top-of-the-line iPad mini with 64GB of memory and a cellular radio would cost $659 before tax.

Sales: Estimates for first-quarter sales range from 3-4 million units (Wu) to 5 million units (Munster and Choi) to 10 million (Stifel Nicolaus’ Aaron Rakers, Pacific Crest’s Andy Hargreaves and Credit Suisse’s Kulbinder Garcha).

Cannibalization: Munster is looking for an iPad cannibalization rate of 20% (in other words, for every 5 million iPad minis customers buy, Apple sells 1 million fewer 9.7-inch iPads.) Choi sees a lower rate — 15% — but one that cuts into sales of both the larger iPads and the iPod touch.

Other announcements: Wells Fargo’s Maynard Um is expecting Apple to use the event to unveil new iMacs, a new Mac mini and a 13-inch MacBook Pro with a Retina display. Wu thinks there may be also be a refreshed Mac Pro. The rumor sites are also calling for a new third-generation iPad that sports the same updated (“Lightning”) port used in the iPhone 5, the newest iPad and, presumably, every iOS device from now on.

The event that will settle all these issues is scheduled to begin Oct. 23 at 10 a.m. Pacific (1 p.m. Eastern). JP Mangalindan will be covering it for Fortune.com and I’ll be monitoring the live blogs from Brooklyn.

About the Author
By Philip Elmer-DeWitt
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Surging Treasury yields expose a brutal truth: America has no margin for error on its $39 trillion debt
EconomyGovernment
Surging Treasury yields expose a brutal truth: America has no margin for error on its $39 trillion debt
By Shawn TullyMay 30, 2026
2 hours ago
America finally crushed smoking—then defunded the playbook
HealthTobacco
America finally crushed smoking—then defunded the playbook
By Mike Stobbe and The Associated PressMay 29, 2026
10 hours ago
Reverse Health App Review (2026): Our Honest Thoughts
HealthWorkouts
Reverse Health App Review (2026): Our Honest Thoughts
By Emily PharesMay 29, 2026
12 hours ago
Green Chef Review (2026): Opinions from Testers and Experts
Healthmeal delivery
Green Chef Review (2026): Opinions from Testers and Experts
By Christina SnyderMay 29, 2026
13 hours ago
Best certificates of deposit (CDs) for May 2026
Personal FinanceCertificates of Deposit (CDs)
Best certificates of deposit (CDs) for May 2026
By Glen Luke FlanaganMay 29, 2026
13 hours ago
Dan Rogers speaking on stage.
AIAsana
Asana was battered by the AI boom. Now it’s betting its future on humans and agents working together.
By Beatrice NolanMay 29, 2026
14 hours ago

Most Popular

As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens
Magazine
As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens
By Emma HinchliffeMay 27, 2026
3 days ago
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
9 days ago
As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales
Success
As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales
By Emma BurleighMay 28, 2026
2 days ago
UBS says Ron DeSantis has a problem with his plan to help 92% of homeowners save on property taxes: His own state's data
Personal Finance
UBS says Ron DeSantis has a problem with his plan to help 92% of homeowners save on property taxes: His own state's data
By Nick LichtenbergMay 28, 2026
2 days ago
Researchers let AI models run a simulated society. Claude was the safest—and Grok committed 180 crimes and went extinct within 4 days
AI
Researchers let AI models run a simulated society. Claude was the safest—and Grok committed 180 crimes and went extinct within 4 days
By Jake AngeloMay 28, 2026
2 days ago
Current price of oil as of May 29, 2026
Personal Finance
Current price of oil as of May 29, 2026
By Joseph HostetlerMay 29, 2026
20 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.