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Apple Doubles iPad Mini Display Orders
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PJS880
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PJS880,
User Rank: Apprentice
12/17/2012 | 8:26:30 PM
re: Apple Doubles iPad Mini Display Orders
I am actually surprised that the sales with the ipad mini are this successful. I guess I have to eat my words on that one. Great job Apple and keep up the great work, now if they will just make a reasonably priced laptop.

Paul Sprague
InformationWeek Contributor
deasys
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deasys,
User Rank: Apprentice
12/17/2012 | 7:05:18 AM
re: Apple Doubles iPad Mini Display Orders
Not quite, gtigerclaw. Walmart--with Apple's approval--is selling the only entry-level iPhone 5 and the iPad 3 16 GB at discounted prices. Those devices make terrific loss leaders/traffic generators for Walmart.

(By the way, given the way Wall Street prices profitless Amazon's stock, it seems to me that the price of AAPL should increase on this news...)
deasys
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deasys,
User Rank: Apprentice
12/17/2012 | 6:55:29 AM
re: Apple Doubles iPad Mini Display Orders
@ jescott418 wrote, "So we wonder why Apple's stock is dropping? Its because of these lower margin Apple product selling better then the higher ones."

Actually, iSuppli's BOM cost analysis of the iPad mini indicates that margins on that model are in line with Apple's average margins.

Then he wrote, "Apple is losing sales to Android, their is absolutely no doubt about it."

Yes, unit sales, but not profits. In fact, Apple makes the bulk of the cellphone manufacturing industries profits. I'm no businessman, but I've heard that it's profits that are the most important thing...
gtigerclaw
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gtigerclaw,
User Rank: Apprentice
12/16/2012 | 12:48:45 PM
re: Apple Doubles iPad Mini Display Orders
Well, Wall-Mart slashed iPad and iPhone 5 prices. An international discount chain like Wal-Mart don't generally discount already discounted products unless the Apples are about ready to hit the 'sell-by date.'

The Wal-Mart move to deep discount Apple products is a major blow to Apple's bloated ego, and most likely will drive Apple's stock prices down even further next week - doesn't inspire investor confidence.
Johnnythegeek
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Johnnythegeek,
User Rank: Strategist
12/16/2012 | 12:15:00 PM
re: Apple Doubles iPad Mini Display Orders
So we wonder why Apple's stock is dropping? Its because of these lower margin Apple product selling better then the higher ones. The iPhone 4S is doing better then the 5 in many markets. Obviously many are choosing iPads over Mac's. The lower priced Apple products are getting more consumers into a Apple product. But it has to be hurting Apple's bottom line at some point.
Its what most of us have said about Mac's for years. Make a cheaper Mac and more will come.
Apple did for a while, the cheaper White plastic Macbook. But then Apple decided a higher margin product would be a small Macbook Air with less of everything then a Macbook but margins are probably better. Apple is losing sales to Android, their is absolutely no doubt about it.For a lot of people who do not worship Apple and prefer instead to let price dictate their purchases. I think Apple is going to have to start being much more competitive or risk losing customers.


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