Tablets running Google's Android tablet have taken advantage of the smaller form factor and price point as a way to differentiate from the iPad. But when Apple enters the space, it's going to hit Android hard, Munster says.
Here's some of what we should expect when it launches — likely at Apple's next phone event, Munster says,
The iPad Mini will force Android tablets to compete on software. Apple has a big advantage here thanks to the iPhone operating system, Munster says.
The iPad Mini will probably cost $299. The iPad 2 costs $399, while the iPod Touch costs $199, so the new tablet will probably fall somewhere around that price point, he said.
The iPad Mini could decimate Android tablet sales. It could take 30 percent of total Android tablet sales in the December quarter.
Here's the money quote from the note:
We had previously expected a smaller iPad in March 2013, but believe the Street generally expected the device this year. We now believe AAPL could sell 4-6 million of the smaller devices in the December quarter, which would be about 20% of total iPad sales in the quarter. Strategically, we believe the launch of a smaller screen, cheaper iPad eliminates the two biggest unique features for Android tablet makers: size and price. Longer term, we remain confident that Apple will maintain a majority, and potentially increasing, share in the tablet space. We reiterate our Overweight rating.