In addition to expectations over the iPad Mini hurting the PC market, the tablet's price is also expected to negatively impact Windows 8 devices.
Sterne Agee analyst Shaw Wu said in an investor's note that the iPad Mini's main rivals are not 7-inch Android tablets, but rather Windows 8-powered tablets and PCs.
"We continue to believe iPad Mini is the competition's worst nightmare and will likely slow down adoption of competitor tablets," Wu said. "In particular, we believe this could end up being a very tough holiday season for Windows 8."
The analyst believes the iPad Mini's $329 price tag will attract consumers more when compared some of the new Windows 8 devices that have higher prices. He referred to Microsoft's $599 Surface RT tablet that is "arguably overpriced." While consumers may believe the iPad Mini is overpriced when compared to other 7-inch tablets such as Google's Nexus 7, Wu suggested that Apple is just following its usual strategy.
"This controversy reminds us of what happened with iPod Mini and iPod Nano," he said. "Both predecessors were criticized as being overpriced but went on to do much better than expected. The key reason being high quality at a reasonable price, and we see something similar here."
The iPad Mini, which launches in several territories today including the U.S. and UK, sold out of its initial pre-order inventory in 23 minutes. As for its price, Apple believes the tablet's quality warrants the premium price tag.
