Apple could Price Mini iPad at $299

Apple could price an 8-in. iPad as low as $299, an analyst said today, as part of a strategy to "crush the opposition."

Rumors of a smaller iPad resurfaced earlier this week after the Wall Street Journal, citing unnamed sources, reported that Apple was contemplating a tablet with an 8-in. display.

Then, several experts expressed skepticism that Apple would introduce a tablet with a screen smaller than the current 9.7-in. size of the current iPad.

Apple is sitting on a mountain of cash. It has money to burn and could easily cut into the iPad profit margin, or even sell the devices at a loss just to squash the competition and dominate the market. If the iPad has dominant market share, Apple can make up the difference in the long run through revenue from apps and other services.

Apple would also benefit from the sort of self-feeding vicious circle created by iOS and OS X. The ecosystem Apple has created with iOS devices and iCloud and extending that with even more integration with the upcoming OS X 10.8 “Mountain Lion” form a cohesive unit that works quite well together, and makes it compelling to get other Apple devices once you have the first one. A spike in iPad sales could very likely spark a dramatic rise in Mac sales as well.