iPad Shipments Lowered Because of iPad Mini Cannibalization?

[MacRumors]

Sterne Agee's Shaw Wu has issued a new report on Apple, raising his iPhone unit estimates while lowering iPad estimates reports Apple 2.0. Additionally, Wu has cut his revenue estimates slightly while increasing his gross margin estimates for Apple's holiday quarter.

Wu says iPad mini demand is strong but sales are limited by supply constraints and he sees the mini cannibalizing full-sized iPad sales. iPhone sales will grow because of improving manufacturing yields and increased availability.

We believe AAPL shares will likely continue to be volatile until year end due to non-fundamental factors including profit taking as AAPL as been an outstanding performer in 2012 where many are opting to lock in gains and fears of higher "fiscal cliff" tax rates next year. However, we believe as we enter 2013, investor sentiment will likely shift back to fundamentals. We are at the beginning of two big product cycles that will likely last 3-5 quarters and see margins poised to improve with greater scale and improving yields.

Article Link: iPad Shipments Lowered Because of iPad Mini Cannibalization?

[JGIGS]

Duh, Of course the mini is going to canibalize regular ipad sales. Just like releasing any new different sized or optioned model of product would do.

[gnasher729]

Originally Posted by JGIGS

Duh, Of course the mini is going to canibalize regular ipad sales. Just like releasing any new different sized or optioned model of product would do.

There was a rumour that the next iPhone comes in six different colours. I bet that will cannibalise sales of black iPhones and white iPhones.

[Gasu E.]

Originally Posted by gnasher729

There was a rumour that the next iPhone comes in six different colours. I bet that will cannibalise sales of black iPhones and white iPhones.

Not comparable, as the colors will not impact gross margins.

[gmanist1000]

Better to be cannibalized by your own products.

This happened with iPod nano, and the iPod mini as well.

[blackburn]

What about the iPod touch? The new gen 32 gigs price is almost the same as the iPad mini. I haven't seen any the new iPods in circulation yet.

[WhoDaKat]

As long as they stay in or become part of the eco-system, Apple is satisfied. They know people like me will get all my content in one place and not want to move it.

[qtrim]

What a dumb observation. That like saying 6ft bed Ford F-150's are cannibalizing the 8ft bed versions. Who cares?

[The Bulge]

iPad sales cannibalized by iPad. Oh MY GOD.

[teknikal90]

Originally Posted by qtrim

What a dumb observation. That like saying 6ft bed Ford F-150's are cannibalizing the 8ft bed versions. Who cares?

why don't you guys get it??
8 foot beds cost more than a 6 foot bed.
iPad mini has a lower profit margin than a full size ipad. Of course people would care.

[ArtOfWarfare]

I, for one, am interested in the iPad mini but wasn't ever interested in the full sized iPad. I feel like the mini could make a great ereader... Now if only iBooks contained any of the textbooks I need for school, I might get one.

My point is, not every sell of an iPad mini means one fewer full sized iPad sell.

[Patriks7]

I'm not sure whether this is actually serious or it's magically April 1st?

[nagromme]

Cannibalization beats predation any day.

The 8” Mini will outsell the 10" iPad going forward I believe. I tried one and am convinced. The screen width/height are over 80% as big as the full iPad, which just doesn’t feel that much different. Not cramped the way I’d feared. But the DEVICE still does feel super small and light. That’s a great combination. (And much better than a 7” plastic device that is super narrow in portrait mode—yet bulkier!)

[SurferPup]

I would like a navy blue iPhone 5S as think that would look really classy. I never had or wanted a regular sized iPad / tablet other than an iPad 3 which I won then gave to my partner. However I love my iPad mini so believe the iPad mini kept the product life cycle alive and that Apple tapped into a new market segment.