Consumer electronics giant Apple (AAPL) has unveiled a new iPad mini that’s aimed at budget-conscious consumers. It’s the first update to the company’s smallest tablet since 2021.
In launching the device, Apple said that its new iPad mini comes with a faster A17 Pro processor, the same chip that is used in the iPhone 15 Pro. Management said the newest iPad mini will be able to support “Apple Intelligence,” the term used to describe the company’s artificial intelligence (AI) features.
The latest iPad mini will be available to buy online and at Apple Stores beginning on Oct. 23 of this year. It has a starting price of $499, making it one of Apple’s most affordable devices. The iPad mini has a devoted fanbase among consumers who appreciate not only its price but its utility and compact 8.3-inch screen that makes it ideal for reading books.
Moving Beyond the iPhone
The new iPad mini is being released at a time when sales of Apple’s signature iPhone are slowing down after years of brisk growth. For this year’s second quarter, Apple reported that its iPhone sales declined 1% from a year earlier, continuing a downward trend that has been ongoing for more than a year.
While the iPhone continues to generate the most revenue for Apple, accounting for 46% of the company’s total sales during Q2 of this year, the company is seeing more growth from other areas of its business, such as “services” that include warranties, cloud storage, and subscriptions.
The strongest growth in Apple’s most recent quarter came from the company’s iPad division, which saw sales grow nearly 24% year-over-year to $7.16 billion. Apple released a new full-sized iPad this spring, and it was the first new version of the tablet since 2022, leading to a wave of upgrades among consumers.
AAPL stock has gained 22% so far this year.
Is AAPL Stock a Buy?
Apple stock has a consensus Moderate Buy rating among 34 Wall Street analysts. That rating is based on 23 Buys, 10 Holds, and one Sell issued in the last three months. The average AAPL price target of $248.90 implies 6.48% upside from current levels.
