iPad Mini Will Cannibalize Big iPad Sales - InformationWeek
IoT
IoT
Mobile // Mobile Devices
Commentary
10/17/2012
06:25 PM
Jacob Lopez
Jacob Lopez
Commentary
50%
50%
RELATED EVENTS
Faster, More Effective Response With Threat Intelligence & Orchestration Playboo
Aug 31, 2017
Finding ways to increase speed, accuracy, and efficiency when responding to threats should be the ...Read More>>

iPad Mini Will Cannibalize Big iPad Sales

An analyst predicts that 20% of iPad Mini sales will cancel out full-size iPad sales. But that's okay with Apple, because all those iPad Minis will steal sales from the Amazon Kindle Fire and other Android tablets, and increase the "halo effect" for other Apple products.

According to Piper Jaffray analyst Gene Munster, Apple's rumored iPad Mini will cannibalize as many as 1 million current-gen iPad sales during the fourth quarter.

His prediction is that 20%, or one out of every five units sold, will take place of one full-size iPad. Although his prediction might be true, this isn't necessarily bad news for Apple. Every iPad Mini sold is one Kindle Fire or one Nexus 7 that's not in the hands of consumers.

Apple doesn't mind a little cannibalization as long as the product eating the other carries its logo. CEO Tim Cook said so himself during a 2011 first-quarter conference call when asked if the iPad was cutting into Mac sales.

"Yes, I think there is some cannibalization, but I also think there is a halo effect," said Cook, explaining that some of those users will later decide to buy a Mac. "If this is cannibalization, it feels pretty good," he joked.

In the long run, even if an iPad Mini cuts into the iPad's sales, it introduces users to the iOS and apps, which is precisely what Apple wants--anything, as long as it's not Android.

Munster also seems to believe that despite the cannibalization, the iPad Mini will boost Apple's overall tablet sales.

Some, such as BYTE's own Larry Seltzer, disagree. "Apple neither makes nor loses money when someone buys a Kindle Fire. But if the [cannibalization] is true, and they're losing iPad 'Biggie' sales then it's a matter of which is more profitable to Apple."

There are enough consumers to sell plenty of both tablets. As long as it means buying things from the Apple App Store and enticing users to switch to Mac while Android sales slow down, Tim Cook & Co. are a happy bunch. It seems Steve Jobs' desire to kill Android lives on.

The iPad Mini has been rumored for quite some time now, and is expected to debut during an Apple press event on Oct. 23 with a release date of Nov. 2.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll