Attention Small Tablet Makers: Apple’s Coming for You

competitionThe market for smartphones and tablets is extremely competitive and fierce, according to my stock analysis. Hundreds of billions of dollars are at stake, and for the market leader, it means riches.

Consider the global market for tablets is estimated to rise to around $31.9 billion this year with over 100 million units delivered, according to business information provider Visiongain. Based on my stock analysis, the market may be much bigger as evidenced by the faltering demand for personal computers (PCs). (Read “Trust Me: Declining PC Demand Is Killing Chip Stocks.”) By 2016, it’s estimated that about 360 million tablets will be sold, according to market research firm IHS iSuppli.

Apple Inc. (NASDAQ/AAPL), which I still consider one of the best stocks in technology, will face increasing competition in the lucrative and surging tablet and smartphone markets, based on my stock analysis. The company is the current market leader in the tablet market.

In a much-anticipated move full of hype, Apple introduced its new “iPad Mini” on Tuesday to glitter and celebration. The new 7.9-inch iPad will be priced from $329.00 for the Wi-Fi–only 16GB version. The smaller tablet is aimed at attacking the market for small tablets to try to open up new revenue flows for Apple. But in my stock analysis, the price point is not that attractive, as the iPad Mini will have to face competition from the $199.00 “Kindle Fire,” made by, Inc. (NASDAQ/AMZN), and other smaller upstarts, including the “Android”-powered “Nexus 7” by Google Inc. (NASDAQ/GOOG) priced at around $300.00.

Of course, my initial stock analysis was that the iPad Mini could also sway current or prospective Apple users to buy the smaller tablet instead of the normal-sized iPad. I can definitely see this happening, as there are likely many users who wouldn’t mind a smaller screen at a lower price point than the $399.00, 10-inch iPad with Wi-Fi and 16GB of memory.

In my stock analysis, Apple remains the king of tablets whose global market share was around 69% in the second quarter, according to ABI Research.

Yet the small-tablet market is intriguing, based on my stock analysis.

It will be interesting to see the reception for the iPad Mini. While many are questioning the price point, which was higher than some had hoped for, Apple has many key advantages, including a loyal following and the greatest number of available applications of any tablet.

While price is important, for many tablet users, the ability to download apps is just as important, based on my stock analysis.

For, the ability to deliver a lower-cost, smaller tablet that allows for frequent applications, such as reading, surfing the Internet, and e-mailing, is picking up steam. The company didn’t want to compete directly with Apple in the large-screen tablet market, but now it has no choice but to mount an offensive, or it will risk losing market share in the small-tablet market. I know Apple is not likely to back down and wants dominance.

My stock analysis is to let the small-tablet wars begin.