Apple's stock took a hit Tuesday and it could be because the iPad mini might be priced too high.
This morning the company announced its new 7.9-inch tablet, but since then Apple's stock has fallen more than 3%, or more than $20. It closed at $613.36.
Typically after new product announcements, Apple's stock falls as people sell on the news, but this time it may be tied to the iPad mini's pricing, according to Value Walk.
The iPad mini starts at $329 for a 16 GB model. By comparison, the iPad mini's competitors, the Google Nexus 7 and the Amazon 7-inch Kindle Fire HD, offer their tablets at $250 and $200 for 16 GB models, respectively.
Analysts reiterated the point, saying Apple may be leaving a gap for its competitors to fill.
"We believe a price point of $250-300 would have gone a long way in keeping competition at bay," Mizuho Securities said in a note Tuesday.
Google and Amazon are counting on the sales of digital goods purchased on the tablets to make up for the low, or in Amazon's case non-existent, margins to make a profit. Apple may instead be counting on the sale of its device.
Pre-orders for the iPad mini start Friday and the device will be available in stores Nov. 2.