Analyst predicts smaller, cheaper iPad for October

Apple’s next device is, according to analyst expectations, a lower-priced, smaller iPad. And it will be out in October, Pacific Crest analyst Andy Hargreaves believes.

The crystal baller has attached a price to his prediction as well: $299.

“We anticipate an entry-level 7.85″ iPad with 8GB of NAND capacity to price at $299 with an initial gross margin of 31%,” he wrote in a recent report.

“We estimate Apple will sell 10.0 million 7.85″ iPads in FQ1 (Dec. 2012) and 35.2 million in all of F2013.”

If such a model were to be released, it would do so at the expense of its bigger brother; Hargreaves cuts down fiscal 2013 predictions from 91.6 million to 65.2 million.

The smaller device is believed to be taking the place of the similarly priced iPad 2.