Would an iPad Mini Take a Bite Out of Apple?

"Ultimately, we view the potential addition of the"iPad Mini" as a long-term positive for Apple's iPad franchise and necessary to keep competitors from trying to control the lower price point segment of the market," White wrote in his research note. The analyst rates Apple shares "buy" with a $1,111 price target.

There's still plenty of skepticism from consumers on an iPad Mini. Twitter user rigso tweeted that he wouldn't buy one, but others might. "I know people who can't afford regular iPad and most likely would. Think mini iPad will be a winner," he wrote. Locallylove, MillarAllan, BostonSportsBum and TxbetaZesty all tweeted they wouldn't buy an iPad Mini.

There's always the issue of self cannibalization, though. Apple has experienced this before, with iPad sales cutting into Mac sales, but never with the same form-factor. White estimates the iPad Mini could cannibalize iPad sales by 10% to 20%, but noted the "the market opportunity could eventually be larger for the 'iPad Mini' given the growth trends in developing countries.

If Apple does indeed come out with an "iPad Mini," this would be a clear sign Apple is deviating from the culture and DNA it had under Jobs, despite CEO Tim Cook saying otherwise. Some shareholders, though, may take some convincing about a scaled-down iPad.

Shares of Apple are higher in Thursday trading, up 0.86% to $604.55.

Apple has not yet responded to TheStreet's request for comment on this story.

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--Written by Chris Ciaccia in New York

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