Will Apple go for 'kill' with iPad Mini?

SAN FRANCISCO —

Just weeks after its momentous launch of the iPhone 5, Apple is back with what is expected to be another hot gadget a  mini  version of its market-leading iPad tablet.

Apple sent out invitations for an event in San Jose, California, keeping details under wraps as it normally does, saying only: “We’ve got a little more to show you.”

Reports have been swirling for months about the “iPad Mini,” but Apple has made no comment. But blogs which closely monitor Apple say the new tablet could be priced from $249 to $399, which could pressure rivals such as the Amazon Kindle Fire.

The Wall Street Journal has reported that Apple has begun production of 10 million of the new iPads. Some reports say it may be available Nov 2.

The bar has been set by Amazon. Even though the Kindle is not the same kind of device, it does what it does very well. The Kindle Fire proved popular last year, and a new version was launched last month. Meanwhile the small-format Google Nexus 7 joined the Samsung Galaxy in the seven-inch tablet market.

Also in the mix will be Microsoft’s Surface a late entry in the market which has a 10.6-inch screen and starts at $499, challenging the larger-format iPads. With Kindles selling from $199, Apple will be forced to keep its price low for its new model and “will not have its normal profit margin. And some blogs say Google may sell a tablet as low as $99.

The key question is whether Apple decides to price in-line with its margin model, or does it get aggressive to ‘go for the kill’ against competitors?

Jack Gold, analyst with J. Gold Associates, said Apple needs to get into the small tablet segment to maintain its leadership.

Gold said Apple will have to wow consumers with the new device to protect its turf. Apple is a premium brand and they want you to pay a premium price. The only way to sustain that is to offer what the others don’t.