Amazon to Get Sideswiped by Apple’s Mini iPad: Analyst
Apple could soon control 90 percent of the tablet market if it succeeds in replicating its larger tablet market share in the smaller category, an analyst told CNBC Tuesday.
The tech giant is expected to launch a smaller iPad with a 7- to 8-inch screen that will compete with existing Android tablets by the end of the year.
If the product arrives by then, Apple could sell 4 million to 6 million of the smaller devices in the December quarter and take 30 percent of total Android tablet sales, said Gene Munster, a senior research analyst at Piper Jaffray.
“We love Amazon stock, but I would say this: If I’m the people who are running their Kindle division, I’m basically bracing for an atomic event as soon as this comes out because they really have the primary market share with those smaller tablets so they’re the ones that are going to get really sideswiped with this,” Munster said.
He told CNBC’s "Squawk on the Street" that he reiterated his “overweight” rating and $910 price target for Apple' stock in a research report released on Monday.
Still, Munster acknowledged the danger of Apple cannibalizing its full-size tablet sales with the launch of the smaller version. He pegged the potential cannibalization rate at around 10 percent.
“I think the reality is that, yes, there is going to be some cannibalization but the net impact is going to be significantly positive for Apple to be in this market,” he said.
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Piper Jaffray was making a market in the securities of Apple at the time this research report was published. Piper Jaffray will buy and sell Apple securities on a principal basis.
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