iPad Mini will probably cost $299

Piper Jaffray, analyst Gene Munster, believes iPad Mini will cost $299 and Apple could sell somewhere between 4-6 million iPad minis this year.

• The iPad Mini will force Android tablets to compete on software. Apple has a big advantage here thanks to the iPhone operating system.
• The iPad Mini will probably cost $299. The iPad 2 costs $399, while the iPod Touch costs $199, so the new tablet will probably fall somewhere between.
• The iPad Mini could decimate Android tablet sales. It could take 30 percent of total Android tablet sales in the December quarter.

"We had previously expected a smaller iPad in March 2013, but believe the Street generally expected the device this year. We now believe AAPL could sell 4-6 million of the smaller devices in the December quarter, which would be about 20% of total iPad sales in the quarter. Strategically, we believe the launch of a smaller screen, cheaper iPad eliminates the two biggest unique features for Android tablet makers: size and price. Longer term, we remain confident that Apple will maintain a majority, and potentially increasing, share in the tablet space. We reiterate our Overweight rating."

Both the WSJ and Bloomberg have confirmed rumors that Apple plans to release an iPad mini this year.