Will Apple's (AAPL) iPad Mini Be Good for Competitors? Or, Even Good for Apple?

Earlier in the session Thursday, rumors that Apple (Nasdaq: AAPL) is building a smaller iPad got a little more solid, with the WSJ, Reuters, and Bloomberg all chirping about it.

There's a few news bits here and we're not going to get too deep. First, what does it mean for Amazon.com (Nasdaq: AMZN), Google (Nasdaq: GOOG), and Barnes & Noble (NYSE: BKS)? Although the iPad has been eating other tablets' lunch, a new, smaller iPad might be welcome to the competition. Really, Amazon and Barnes & Noble haven't been selling nearly as many tablets as Apple and the reality is that those companies simply want to get more content into consumers' hands so there are more purchases made. Generally, Amazon itself might be okay ceding the tablet sphere, where margins are cramped anyway. Barnes & Noble also has a ton of e-books in its library that it would be more than happy to sell via a new iPad mini app.

Google is just getting into the segment, so there's no real room for evaluation here. Google has its Google Play marketplace and plethora of books as well, but Apple has been adamant about trying to steer clear of the search giant.

Next, there's the potential for lagging sales if it's released in conjunction with the next iPhone. Though this seems like a viable case, it can also be argued that folks consuming Apple products aren't going to decide between one or the other. In addition, the release of the regular-sized iPad happens in the spring, giving about six-months between two major releases.

(Side note: will the release of a smaller iPad hint at what's to come for the bigger iPad? Hmm...)

But, this could all fall apart on pricing. The entry level new iPad starts at $499 with the older iPad 2 model at $399. If an iPad Junior isn't priced at $250 or lower, it might not have the same impact.

There's a few things we can draw from the aforementioned data::

• Looking at smaller versions of competing tablets, will Apple be sacrificing quality for quantity? Will Apple's name suffer as the result of making a "cheaper" tablet?
  
  
• Will there even still be an iPad 2 option for buyers if the iPad mini is priced at $250 to $300? Having consumers choose simply between a small and large version might make the best sense.
  
  
• How many iPad mini versions will there be in terms of memory size and features? Will the most expensive iPad mini cost the same as a regular-sized entry-level iPad?
  
  
• Will Apple focus more in the smaller iPad to work in conjunction with a potential TV set release in 2013?

Either way, nothing is set in stone yet. This will be a rare case of Apple reacting to the market, where it normally is a trailblazer.

Shares of Apple, Google, and Barnes & Noble are all higher on the session Thursday, while Amazon is trading lower.

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