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PeterQVenkman

macrumors 68020
Mar 4, 2005
2,023
0
Yes, but the mini is a lot cheaper than an iPad 4. This is not good cannibalization.

This has all happened before. Steve Jobs wasn't worried then:

Someone from the audience asked whether Apple was concerned about cannibalization of business from the iPod with the introduction of the iPhone, and Steve answered that if there's going to be cannibalization of Apple, they want it to be by Apple.

http://arstechnica.com/apple/2007/0...os-x-and-off-the-charts-macs-in-the-pipeline/

They are Apple customers one way or another. Apple's making quite a profit off the mini, too, so don't fret!

If Apple isn't worried, I am not worried about it in the least.
 

Aluminum213

macrumors 68040
Mar 16, 2012
3,597
4,707
I hope iPad 4 sales are sluggish, it would motivate them to release a "real" update in March, (e.g. thinner, lighter, new form factor, IGZO display.)

Lol, another iPad update in less then an year time will make people even more hesitant to buy an iPad then they already are

They refreshed the cycles to fall
 

Dmunjal

macrumors 68000
Jun 20, 2010
1,533
1,542
This has all happened before. Steve Jobs wasn't worried then:



http://arstechnica.com/apple/2007/0...os-x-and-off-the-charts-macs-in-the-pipeline/

They are Apple customers one way or another. Apple's making quite a profit off the mini, too, so don't fret!

If Apple isn't worried, I am not worried about it in the least.

The goal of the iPad Mini was to get share in low-priced, smaller tablets that they weren't getting with the iPad. If customers buy the Mini instead of the Nexus 7 or the Kindle HD, than that is a good thing for Apple. If customers buy the Mini INSTEAD of the iPad, then that is a bad thing for Apple. The margin on the Mini is much smaller than on the regular iPad. This is what seems to be what is happening.
 

Mr Fusion

macrumors 6502a
May 7, 2007
841
1,061
Lol, another iPad update in less then an year time will make people even more hesitant to buy an iPad then they already are

They refreshed the cycles to fall
In case you didn't notice, Apple's in the business of making money. They realized the iPad 3 wasn't going to get them enough Holiday sales so they spec bumped it to make it to March. The mini's release has only emphasized how outdated and overweight the big iPad is, and there's no way Apple will keep the current design for an entire year.

And I'm not buying the "people are scared about buying now" argument: If people need an iPad, they'll buy it now. No one's freaking out about a change in release cycles except a few fanboys.

:cool:
 

coldpower27

macrumors regular
Aug 1, 2009
109
1
Toronto, Canada
I just came back from the Apple store, and boy was it crowded!

First I checked out the iPod Touch, then the iPad 4, then the iPad Mini.

I'd really like to get a 5th gen iPod Touch to replace my battery failing 3rd gen. But the idea of plunking down over $400 for a 64GB model makes me hesitate. Apple REALLY charges TOO MUCH for it's memory. Still the Touch is very attractive, has that great sharp Retina display, great cameras, is light and handy.

The iPad 4 was next. As I reached for it my hand could already sense the heat emmanating from its toasty innards. The beast IS really much faster than the iPad 3. And I couldn't detect any trace of the yellow tinge reported by others. But of course this was a display model.

Then there is the iPad Mini. At last I was able to actually try one out. I was very pleased with it, overall. The size and weight are perfect and it has stereo speakers. What really sold me though, was the fact that I could tuck the iPad Mini into my jacket pocket. Oh happy day! The only downer was the somewhat inferior screen. It's good and quite serviceable, mind you, but it just doesn't pop with sharpness and brilliance like the Retina screen does. However since the processor doesn't have to contend with extra graphics duties, it doesn't hang or stutter at routine tasks as the iPad 3 does.

So I'm stuck on the horns of a dilemma - what to buy. I didn't expect it to be the case, but I'm seriously considering buying the iPad Mini. It's portable, light and large enough to read books comfortably.

Yeah that $100 Upgrade from 32GB to 64GB is now way too much. It's 2012 32Gb MicroSD can be gotten as cheap as $20-25 64GB is holding at around $60. I no longer use my iPod Touch much for anything besides music so the my Third Gen still serves as a good music player, but that is pretty much all I use it for.

----------

The goal of the iPad Mini was to get share in low-priced, smaller tablets that they weren't getting with the iPad. If customers buy the Mini instead of the Nexus 7 or the Kindle HD, than that is a good thing for Apple. If customers buy the Mini INSTEAD of the iPad, then that is a bad thing for Apple. The margin on the Mini is much smaller than on the regular iPad. This is what seems to be what is happening.

Yeah there has to be product segmentation. I prefer more choice, but this option may reduce margins overall.

I still want a 16GB Mini for taking out though, my more powerful iPad can remain at home and be used there.
 

BvizioN

macrumors 603
Mar 16, 2012
5,701
4,819
Manchester, UK
True but in a few months we will be closer to the iPad 5th gen. I think the next update will focus on size/weight and that is more important to me as a 3rd gen owner.

In a few months? I believe this time is going to be more like a year. I wouldn't hold my breath for a march new launch.
 

iSunrise

macrumors 6502
May 11, 2012
382
118
Because most iPad 3 owners won't be stupid enough to pay twice.
Exactly. And there´s practically no reason, too. If you look at the minor changes, it´s not worth it at all.

The worst thing for Apple this time is that even their usual early adopters that normally would buy the newest iPad, don´t buy an iPad 4, because it is almost the same as an iPad 3. Their´s no serious issues with an iPad 3 I can think of that would want you to upgrade to an iPad 4. The small increase in speed when using it doesn´t justify buying an iPad 4. It´s simply not cool enough to upgrade.

They are re-using almost everything they´ve built for an iPad 3 and sell it as a new model. Customers don´t like that.
 
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croooow

macrumors 65816
Jul 16, 2004
1,044
206
Found it! I will now no longer have to see his annoying posts...
 
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haruhiko

macrumors 604
Sep 29, 2009
6,529
5,875
Exactly. And there´s practically no reason, too. If you look at the minor changes, it´s not worth it at all.

The worst thing for Apple this time is that even their usual early adopters that normally would buy the newest iPad, don´t buy an iPad 4, because it is almost the same as an iPad 3. Their´s no serious issues with an iPad 3 I can think of that would want you to upgrade to an iPad 4. The small increase in speed when using it doesn´t justify buying an iPad 4. It´s simply not cool enough to upgrade.

They are re-using almost everything they´ve built for an iPad 3 and sell it as a new model. Customers don´t like that.

Well Apple did that with the iPhone 4S - twice as fast, upgraded camera, looks mostly the same. The only difference is there was a 18-month interval between the 4 and 4S... Apple lost a lot of grounds in the smartphone war against Android by this. The rest is history.
 

croooow

macrumors 65816
Jul 16, 2004
1,044
206
Exactly. And there´s practically no reason, too. If you look at the minor changes, it´s not worth it at all.

The worst thing for Apple this time is that even their usual early adopters that normally would buy the newest iPad, don´t buy an iPad 4, because it is almost the same as an iPad 3. Their´s no serious issues with an iPad 3 I can think of that would want you to upgrade to an iPad 4. The small increase in speed when using it doesn´t justify buying an iPad 4. It´s simply not cool enough to upgrade.

They are re-using almost everything they´ve built for an iPad 3 and sell it as a new model. Customers don´t like that.

You have great points but there is another angle: Yes, the iPad 4 isn't going to be purchased by a lot of iPad 3 owners as upgrades since it isn't really much of an update.

Apple isn't targeting those people, they are selling this to holiday shoppers. It did not cost them as much to develop the new iPad as it would if it was a new design. The new iPad has the new lightning connector which helps support the newer iPods and iPhones. This isn't a "headline grabbing" "long line" type product, it's a steady seller for Christmas.

People walking into an Apple store see they have a "brand new" tablet instead of an 8-9 month old one (even if there isn't much difference, a lot of people just don't know)

----------

In a few months? I believe this time is going to be more like a year. I wouldn't hold my breath for a march new launch.

Just in time for Christmas 2013!
 

Jetson

macrumors 6502a
Oct 5, 2003
596
50
I wish that Apple had addressed the iPad 3 heat issue with the iPad 4.

I mean if they were going to improve it they should have tried to fix that.
 

PeterQVenkman

macrumors 68020
Mar 4, 2005
2,023
0
The goal of the iPad Mini was to get share in low-priced, smaller tablets that they weren't getting with the iPad. If customers buy the Mini instead of the Nexus 7 or the Kindle HD, than that is a good thing for Apple.

No doubt.


If customers buy the Mini INSTEAD of the iPad, then that is a bad thing for Apple. The margin on the Mini is much smaller than on the regular iPad. This is what seems to be what is happening.

I think you're reaching quite a bit to make an Apple purchase seem like a bad thing. I doubt Apple is worried when this happens in other product lines with multiple tiers (iPhones, laptops, desktops), much like I doubt Toyota considers me buying a Corolla is cannibalization of a potential Camry sale.

Apple wouldn't have done it if they couldn't make money. They'll be fine.


Well Apple did that with the iPhone 4S - twice as fast, upgraded camera, looks mostly the same. The only difference is there was a 18-month interval between the 4 and 4S... Apple lost a lot of grounds in the smartphone war against Android by this. The rest is history.

Here's your history:
Apple_NonApple_ProfitandEBIT.png


Apple is at 77.1% of the profits, with Samsung at 29%. Apple lost ground to Samsung. Everyone else gets to split the crumbs left on the table. Most of the android manufacturers are in the red.
 
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TallManNY

macrumors 601
Nov 5, 2007
4,742
1,594
What you are saying boils down to Apple doing what it does in order to maximize total profits. I don think that we disagree much.

Yes, Apple does attempt to maximize profits. They have, in my opinion, been too conservative in their expectations of sales. I think they are deathly afraid of having unsold inventory. So they project sales for a period of time and set up the factories and orders to fulfill that demand. They'd rather have shortages (and thereby lose out on some sales) then run the risk of occasionally having surpluses. This leaves Apple with very high margins. However, I think Apple has under delivered on a few items. The original iPad was one that it really seemed to me that Apple could have devoted more resources to manufacturing it and still have sold every one they could make. But if the device had flopped Apple would have been left with a ton of unsold inventory. So they were a little cautious and you continued to see shortages six months after its introduction.
 
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