Register FAQ / Rules Forum Spy Search Today's Posts Mark Forums Read
Go Back   MacRumors Forums > News and Article Discussion > iOS Blog Discussion

Reply
 
Thread Tools Search this Thread Display Modes
Old Dec 12, 2012, 10:58 AM   #1
MacRumors
macrumors bot
 
Join Date: Apr 2001
iPad Shipments Lowered Because of iPad Mini Cannibalization?




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.
Quote:
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?
MacRumors is offline   0 Reply With Quote
Old Dec 12, 2012, 11:02 AM   #2
JGIGS
macrumors regular
 
Join Date: Jan 2008
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.
__________________
15" MacBook Pro Retina 2012, Nexus 5 2013
JGIGS is offline   5 Reply With Quote
Old Dec 12, 2012, 11:10 AM   #3
gnasher729
macrumors G5
 
gnasher729's Avatar
 
Join Date: Nov 2005
Quote:
Originally Posted by JGIGS View Post
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.
gnasher729 is offline   9 Reply With Quote
Old Dec 12, 2012, 11:13 AM   #4
gmanist1000
macrumors 68000
 
gmanist1000's Avatar
 
Join Date: Sep 2009
Better to be cannibalized by your own products.

This happened with iPod nano, and the iPod mini as well.
gmanist1000 is offline   4 Reply With Quote
Old Dec 12, 2012, 11:20 AM   #5
blackburn
macrumors 6502a
 
blackburn's Avatar
 
Join Date: Feb 2010
Location: Where Judas lost it's boots.
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.
blackburn is offline   0 Reply With Quote
Old Dec 12, 2012, 11:28 AM   #6
WhoDaKat
macrumors regular
 
Join Date: May 2006
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.
WhoDaKat is offline   0 Reply With Quote
Old Dec 12, 2012, 11:32 AM   #7
qtrim
macrumors member
 
Join Date: Oct 2011
What a dumb observation. That like saying 6ft bed Ford F-150's are cannibalizing the 8ft bed versions. Who cares?
__________________
iPhone4, 4S, iPad2 and iPad
qtrim is offline   5 Reply With Quote
Old Dec 12, 2012, 11:36 AM   #8
The Bulge
Banned
 
Join Date: Oct 2012
Location: Up your ass.
iPad sales cannibalized by iPad. Oh MY GOD.
The Bulge is offline   2 Reply With Quote
Old Dec 12, 2012, 11:36 AM   #9
teknikal90
macrumors 65816
 
Join Date: Jan 2008
Location: Vancouver, BC
Quote:
Originally Posted by qtrim View Post
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.
__________________
Logic Pro and Mainstage 3 User. I use iOS a lot.
teknikal90 is offline   1 Reply With Quote
Old Dec 12, 2012, 11:37 AM   #10
pgiguere1
macrumors 68000
 
pgiguere1's Avatar
 
Join Date: May 2009
Location: Montreal, Canada
In other news, the MacBook Pro sales are cannibalized by Retina MacBook Pro sales.

pgiguere1 is offline   2 Reply With Quote
Old Dec 12, 2012, 11:39 AM   #11
angrynstupid
macrumors regular
 
Join Date: Jan 2010
Location: Michigan
Thanks for stating the obvious

Of course the mini is going to cannibalize iPad sales. That's like saying the white iPhone is going to cannibalize black iPhone sales.
angrynstupid is offline   2 Reply With Quote
Old Dec 12, 2012, 11:47 AM   #12
Szarky
macrumors 6502
 
Join Date: Jul 2010
Funny watching people not read the comments before they post and then go on to say practically the same thing that's been said 10 times before.
Szarky is offline   1 Reply With Quote
Old Dec 12, 2012, 11:53 AM   #13
ArtOfWarfare
macrumors 601
 
ArtOfWarfare's Avatar
 
Join Date: Nov 2007
Send a message via Skype™ to 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.
ArtOfWarfare is offline   2 Reply With Quote
Old Dec 12, 2012, 11:54 AM   #14
Patriks7
macrumors 65816
 
Patriks7's Avatar
 
Join Date: Oct 2008
Location: Batcave
I'm not sure whether this is actually serious or it's magically April 1st?
__________________
iPhone 5 | iPad rMini | iPod Nano
MacBook Pro Unibody 15" | Canon 40D
Soon: rMBP
Patriks7 is offline   0 Reply With Quote
Old Dec 12, 2012, 11:55 AM   #15
kas23
macrumors 603
 
kas23's Avatar
 
Join Date: Oct 2007
We knew this would happen. Not many people were going to buy a Mini in addition to the iPad 4 they just bought.

That said, I don't if this is a problem or not. According to this, the profit margins of the Mini are smaller than the regular iPad:

http://tech2.in.com/news/tablets/ipa...e-model/563432

But, this says they are about the same as the regular iPad.

http://www.computerworld.com/s/artic...een_40_and_55_
kas23 is offline   0 Reply With Quote
Old Dec 12, 2012, 11:59 AM   #16
Capt Underpants
macrumors 68030
 
Capt Underpants's Avatar
 
Join Date: Jul 2003
Location: Austin, Texas
Quote:
Originally Posted by angrynstupid View Post
Of course the mini is going to cannibalize iPad sales. That's like saying the white iPhone is going to cannibalize black iPhone sales.
No it's not.

As stated before, Apple's margins on iPad mini are lower than on iPad. So cannibalization of the iPad by iPad Mini = less profit for Apple, and potentially unhappy investors.
__________________
Love.
Capt Underpants is offline   0 Reply With Quote
Old Dec 12, 2012, 12:04 PM   #17
The Bulge
Banned
 
Join Date: Oct 2012
Location: Up your ass.
Quote:
Originally Posted by Capt Underpants View Post
No it's not.

As stated before, Apple's margins on iPad mini are lower than on iPad. So cannibalization of the iPad by iPad Mini = less profit for Apple, and potentially unhappy investors.
That's only true if sale of a regular sized ( ) iPad is replaced by a sale of iPad Mini ( which we have no proof for or against), but i doubt it's the case. I think Apple is selling way more iPad Minis.
The Bulge is offline   0 Reply With Quote
Old Dec 12, 2012, 12:32 PM   #18
lowbatteries
macrumors regular
 
Join Date: Mar 2008
Quote:
Originally Posted by gmanist1000 View Post
Better to be cannibalized by your own products.

This happened with iPod nano, and the iPod mini as well.
Well, you can't really be cannibalized by other people's products, can you?

----------

Quote:
Originally Posted by The Bulge View Post
That's only true if sale of a regular sized ( ) iPad is replaced by a sale of iPad Mini ( which we have no proof for or against), but i doubt it's the case. I think Apple is selling way more iPad Minis.
This is what is meant by cannibalization. People buying the iPad Mini instead of an established product from the same manufacturer.

Most companies try not to do this, but I really don't think Apple cares much. I'm sure they'd prefer everyone bought an iPad and an iPad mini, but it's more important that you buy any iPad instead of a Kindle/Nexus.

Last edited by lowbatteries; Dec 12, 2012 at 12:37 PM.
lowbatteries is offline   3 Reply With Quote
Old Dec 12, 2012, 12:32 PM   #19
gnasher729
macrumors G5
 
gnasher729's Avatar
 
Join Date: Nov 2005
Quote:
Originally Posted by Capt Underpants View Post
No it's not.

As stated before, Apple's margins on iPad mini are lower than on iPad. So cannibalization of the iPad by iPad Mini = less profit for Apple, and potentially unhappy investors.
"If you don't cannibalise your own products, someone else will". Don't know exactly who said it.
gnasher729 is offline   2 Reply With Quote
Old Dec 12, 2012, 12:48 PM   #20
nagromme
macrumors G4
 
nagromme's Avatar
 
Join Date: May 2002
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!)
nagromme is offline   0 Reply With Quote
Old Dec 12, 2012, 12:56 PM   #21
The Bulge
Banned
 
Join Date: Oct 2012
Location: Up your ass.
Quote:
Originally Posted by lowbatteries View Post
Well, you can't really be cannibalized by other people's products, can you?

----------



This is what is meant by cannibalization. People buying the iPad Mini instead of an established product from the same manufacturer.
If the bottom line stays the same or even gets better i really don't know why that would be a problem.
The Bulge is offline   0 Reply With Quote
Old Dec 12, 2012, 01:58 PM   #22
Gasu E.
macrumors 68020
 
Gasu E.'s Avatar
 
Join Date: Mar 2004
Quote:
Originally Posted by gnasher729 View Post
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.
__________________
Please stop boring me.
Gasu E. is offline   1 Reply With Quote
Old Dec 12, 2012, 02:51 PM   #23
teknikal90
macrumors 65816
 
Join Date: Jan 2008
Location: Vancouver, BC
Quote:
Originally Posted by gnasher729 View Post
"If you don't cannibalise your own products, someone else will". Don't know exactly who said it.
That quote was said in context of new innovative products, not so much cost cutting.

cannibalize yourself by introducing better products. sure. iPhone > iPod. This is good.
but introducing a cheaper iPad to cannibalize a more profitable iPad?
__________________
Logic Pro and Mainstage 3 User. I use iOS a lot.
teknikal90 is offline   0 Reply With Quote
Old Dec 12, 2012, 04:41 PM   #24
dampfnudel
macrumors 6502a
 
Join Date: Aug 2010
Location: Brooklyn, NY
There would be even more iPad mini cannibalization if it had a retina display. Wait until next year. The iPad 5 better be a half pound lighter with a smaller bezel to get rid of that bulk.
__________________
iPhone 5s (64GB) | iPad Air (128GB)
dampfnudel is offline   0 Reply With Quote
Old Dec 12, 2012, 07:23 PM   #25
Chip NoVaMac
macrumors G3
 
Chip NoVaMac's Avatar
 
Join Date: Dec 2003
Location: Northern Virginia
Quote:
Originally Posted by Szarky View Post
Funny watching people not read the comments before they post and then go on to say practically the same thing that's been said 10 times before.
Amen!

Yes, the mini cuts in to regular iPad sales... Yet iPhone 5 yields are higher so revenue is cut "slightly" while gross margins will increase...

Captain Obvious where are you?
__________________
It is fast approaching the point where I don't want to elect anyone stupid enough to want the job. - Bombeck
Chip NoVaMac is offline   0 Reply With Quote

Reply
MacRumors Forums > News and Article Discussion > iOS Blog Discussion

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -5. The time now is 10:17 PM.

Mac Rumors | Mac | iPhone | iPhone Game Reviews | iPhone Apps

Mobile Version | Fixed | Fluid | Fluid HD
Copyright 2002-2013, MacRumors.com, LLC