With the invites for Apple's Oct. 23 event sent out, where the company is expected to launch its highly-anticipated iPad Mini, analysts speculate that the latest iPad Mini will cannibalize 15 to 20 percent sales of its previous iterations.

Analysts suggests that iPad Mini will increase Apple's overall tablet sales, but will also result in potential buyers of older iterations of iPads to buy latest iPad Mini which will be smaller and expected to be cheaper than its predecessors.

"We view the smaller iPad as mostly an incremental opportunity" for Apple, said Bill Choi, an analyst at Janney Capital Markets. Choi further added "The iPad Mini likely will attract more women and younger users (eight to 16 years old). But (we) see some modest cannibalization risk to the iPad and iPod Touch."

Choi predicts that Apple will sell 25.5 million iPads in the December quarter, which is a net increase of five million units related to the iPad Mini. Choi also forecasts that the iPad Mini will sell six million units and cannibalizie one million iPad sales.

"The smaller device will pave the way for iPad to become a bigger part of the Apple story," said Gene Munster, an analyst at Piper Jaffray. Munster further added "We believe lower priced iPads will result in more adoption in education, emerging markets, and retail."

Munster indicates in his report that the iPad Mini could account for five percent for the company's sales in fiscal 2013 and 25% of Apple's overall tablet sales in 2013. Munster further estimates that Apple will sell five million iPad Minis in the December quarter.

"We believe that the smaller iPad could cannibalize 1 million regular iPad units in December or a rate of cannibalization at 20% (i.e. for every 5 million smaller iPads, you lose 1 million standard iPads), implying 25 million units for December from our prior 21 million," reported Munster.

Rumors of iPad Mini indicate that the latest Apple offering will pack impressive features at a very competitive price, which may pull the rug from underneath rival tablet manufacturers.

On Oct. 23, Apple will put to rest all the speculations when it finally unveils the iPad Mini.