iPad Mini to drive lower-cost tablets, says analyst

Apple’s iPad Mini.

(Credit: Apple)

The second-generation iPad Mini will force tablet vendors to continue to drop their prices, says J.P. Morgan analyst Mark Moskowitz.

In an investors note out today, Moskowitz raised his 2013 tablet sales forecasts based on a boost from the Mini and other low-cost tablets.

The analyst now expects tablet unit sales to grow by 65 percent this year, up from a prior estimate of 53.5 percent. Overall tablets revenues are likely to rise by 33.2 percent, compared with the previous projection of 32.5 percent.

Apple will be the major beneficiary of those higher tablet sales. In Moskowitz’s opinion, other device makers haven’t been able to cook up a tablet as “compelling” as the iPad, at least not yet. As a result, the rest of the industry will be forced to compete on price.

“In our view, 2013 will be important for the laggards because Apple’s iPad Mini, particularly when the second generation is launched, stands to drive other vendors to even lower price points,” Moskowitz said. “We expect sub-$ 199 price points to be reached this year by other vendors, but we are skeptical the feature sets will be able to establish a sustainable sales pipeline.”

[more @ CNET]

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