Yes, the iPad mini is indeed going to be competitors’ worst nightmare. But Apple’s new 7.9-inch tablet won’t be terrorizing Android tablets as much as the last vestiges of PCs – many now with Microsoft’s new Windows 8. On the eve of sales of Apple smaller tablet, the Sterne Agee analyst said Apple has its bulls-eye on PCs and Windows. Clarifying his earlier “nightmare” comment, Wu said observers who believe the new device is chiefly aimed at Android tablets such as Amazon’s Kindle Fire HD or Google’s Nexus 7 “miss the point”

“In particular, we believe this could end up being a very tough holiday season for Windows 8,” Wu told investors, according to AppleInsider. Microsoft’s Surface RT, the software giant’s latest attempt at getting tablets right, should be especially nervous. The Surface’s $599 price tag is “arguably overpriced” compared to the mini’s $329, the analyst claims.

Wu dismissed concerns that the $329 mini is overpriced, calling such nail-biting “overdone”. Indeed, in the iPod mini and iPod nano there is precedence for Apple introducing a new member of the iOS device family. Both initially seemed too pricey. Both the iPods sold well, because they offered “high quality at a reasonable price”, Wu writes.

There is something to be said for high quality trumping low prices. Apple is not trying to compete in the bargain basement class of computer sales. In some ways, the iPhone maker has made design and ease-of-use features of its products as much as a touchscreen or how many pixels a device’s camera offers.

In the end, it doesn’t really matter whether the mini threatens mostly Android tablets or Windows 8 PCs. For Apple, the mini fills a void which allowed competitors to rule. Until now, if you wanted a smaller tablet, you had to buy Android.

That’s changed now.

What say you?

Will the iPad mini steal some sales originally meant for Microsoft or Windows 8 PCs?