Apple's new, smaller iPad, dubbed the iPad Mini, may cannibalize demand for its existing tablet computers, according to Tim Daniels, technology, media and telecommunications strategist at Olivetree Securities.
"It is not clear to me at the moment that consumers have the disposable income to upgrade their smartphone, and to buy an iPad, and to buy an iPad Mini. They might buy one, or at a stretch two, but I don't think they will buy all three," Daniels told CNBC Europe's "Squawk Box" on Tuesday.
"Given the pressure you can see on the consumer and the higher-end retailer — and let's face it, Apple is priced as a premium product — I suspect at the margin, you are going to see cannibalization."
Most analysts expect Apple to unveil a smaller version of the iPad at an event on Tuesday in San Jose, California, though no name or details have so far been revealed for such a product.
Daniels said that from an investor perspective, he was more interested in the iPad Mini's price point than its functionality.
"You are getting tablets out from people who are actually prepared to sell the tablets at a loss, like Amazon, because it leads onto other revenues that they generate," he said.
"I think Apple is always trying to walk a fine line between maintaining or growing its market share, but at the same time, not sacrificing its margins... The market, given the pull back in the stock recently, is getting increasingly skeptical about how well it is going to manage that balance going forward."
Apple's stock has rallied 56 percent year-to-date, but has fallen nearly 10 percent since its record high last month of $705.07.
Apple (along with Amazon ) will report third-quarter earnings on Thursday. The tech giant posted its best trading day in nearly five months on Monday, after Goldman Sachs reiterated its "buy" rating on the stock.