Analysts have cautioned that Apple's (Nasdaq: AAPL) iPad Mini could cannibalize the full-sized iPad by 10 to 20 percent, by most estimates. However, Sameer Singh of Tech-Thought says the number could be much higher - at closer to 50 percent. If true, this would significantly impact Apple earnings since Apple's margins are estimated to be significantly lower for the iPad Mini versus the full-sized version.

Singh arrived at the 50 percent canalization rate by analyzing data extracted from the Samsung trial, which showed the iPad 2 was the most popular iPad following the release of the iPad 3, with a cannibalization rate of around 60 percent. This cannibalization was obviously the result of lower pricing on the iPad 2, which points to high levels of price sensitivity.

If Singh is correct, Apple could see its margins come under pressured, as the iPad Mini eats into profits.

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Noted Analyst Sees Apple (AAPL) Slinging Up to 1.5M iPad Minis Over the WeekendNovember 2, 2012 11:33 AM