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Old Apr 21, 2014, 09:18 AM   #1
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Cannibalization of iPad Mini by iPhone 6 Unlikely to Negatively Affect Apple's Overall Sales




Apple is expected to introduce a large-screened iPhone 6 with a 4.7-inch model arriving this fall and a 5.5-inch version debuting early next year. Though this large iPhone may cannibalize iPad mini sales, Piper Jaffray analyst Gene Munster does not believe this shift in sales will have a net effect on Apple, reports CNET.

In a Monday note to investors, Munster argues that many iPhone owners will accelerate their upgrade to buy the iPhone 6 instead of the iPad mini, while other customers will purchase a bigger iPhone and pair it with an iPad Air. The net effect on Apple is an equal amount of sales even though the distribution among iPad and iPhone models may change with the debut of a larger iPhone.
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We note that even at a 5" screen size, the viewable area of an iPad Mini at 7.9" would still be 150% larger than the iPhone 6. Net-net we believe any potential cannibalization would be roughly neutral overall to the model as we believe in some situations users might accelerate their phone update instead of buying an iPad Mini and keep an old phone, while in other cases we might see consumers that purchase an iPhone 6 decide to purchase an iPad Air instead of Mini to increase the utility difference between the devices.
Similar to other analysts, Munster believes Apple will report earnings at the higher end of its own guidance for the second quarter of 2014 with revenues of $44 billion, iPhone sales of 38.5 million units and iPad sales of 21 million units. Munster predicts the current quarter, which will end in June, will be slow for Apple with only 5 percent year over year growth.
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"We continue to believe that June numbers are too high given our expectation that there will be no new products in the quarter. We note that given the company's history with guidance, the high-end of Apple's guide is all that matters and we expect the company's high-end of guidance to imply no more than 5% y/y revenue growth. Most importantly, while iPhone will benefit from China Mobile in the first full quarter of iPhone availability, we believe that iPhone unit sales may remain in the low single digits in Jun-13 ahead of the iPhone 6 launch."
Apple will announce its earnings for the second fiscal quarter (first calendar quarter) of 2014 on Wednesday, April 23. The earnings release usually is released around 4:30 PM ET following the close of regular stock trading. The conference call to discuss the earnings report is scheduled to follow at 5:00 PM Eastern / 2:00 PM Pacific.



Article Link: Cannibalization of iPad Mini by iPhone 6 Unlikely to Negatively Affect Apple's Overall Sales
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Old Apr 21, 2014, 09:19 AM   #2
Lionel Messi
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Doubt it.
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Old Apr 21, 2014, 09:19 AM   #3
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“If you don’t cannibalize yourself, someone else will”
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Old Apr 21, 2014, 09:20 AM   #4
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Can't wait for a 13-inch iPhone. I'll sell my MacBook Air then.
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Old Apr 21, 2014, 09:20 AM   #5
StoneJack
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The 4.7 and Air combo may make sense.
I currently have Macbook Air, iPhone and iPad mini with me, usually.
But if they going to bring iPad Air Pro 12 inch?...
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Old Apr 21, 2014, 09:21 AM   #6
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Really doubtful with a 5.5 inch screen phone...
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Old Apr 21, 2014, 09:30 AM   #7
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With the different screen ratios, the iPad mini is far more than 150% larger in viewable area than an iPhone at 4.7". If they miss out on details like that...why would I even begin to have any faith in this crap?
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Old Apr 21, 2014, 09:34 AM   #8
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Doubtful that iPhone 6 will run iPad specific apps, so there is a clear differentiation. No reason for me to upgrade from 4s rMini combo.
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Old Apr 21, 2014, 09:35 AM   #9
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I'm finding myself more interested in a larger iPod touch as an iPad mini replacement due to extra convenience and lower price for more storage.
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Old Apr 21, 2014, 09:35 AM   #10
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I don't understand why a slightly bigger phone would cannibalise the iPad Mini. After trying out some of the competitions phablets and owning the iPad rMini since launch, I can confidently say that a bigger phone cannot replace the experience you get from an actual tablet.

I'm still of the opinion that these phablets are too small to comfortably do anything on them, but they're also too big to comfortably have them on you at all times. That's why I'm hoping Apple doesn't go with anything bigger than the rumoured 4.7, otherwise I'll be staying with my iPhone 5 for a long time.
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Old Apr 21, 2014, 09:49 AM   #11
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I still have my doubts about Apple making a 5.5 inch phone. 4.7 inch sounds perfect and I doubt will have any effect on the iPad Mini 7.9 inch. The iPad Mini is still nearly double the screen size of a 4.7 inch phone. I own both the Air and the iPad Mini and the Mini is always my go to device. I hardly notice a difference in screen size. I do however notice going from my iPhone to the Mini.
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Old Apr 21, 2014, 09:51 AM   #12
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Options, that's what consumers want. It's a good thing.
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Old Apr 21, 2014, 10:08 AM   #13
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I do not think that the iPhone 6 will Cannibalize iPad mini sales because even at 5.0 screen the mini screen is still >150% larger. Also even at 5.5 screen it still would be >140% Larger.
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Old Apr 21, 2014, 10:13 AM   #14
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no cannibalization, just more options
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Old Apr 21, 2014, 10:14 AM   #15
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A near $1000 phone/phablet outright or on a locked contract for 2 years will cannibalise $299 iPad Mini? Anyone who believes that is dreaming. They both are in two totally different market segments. The most that will happen is people who want an Apple phablet probably wont buy an iPad mini as well.

The iPad Mini is alive and well. And the huge difference in price ensures this.

Stupid article really. The cannibalisation the article talks about will be negligible. Worth nothing but it wont even come close to affecting the bottom line. it's a tiny tiny issue.

(US prices)
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Old Apr 21, 2014, 10:24 AM   #16
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Apple isn't going to release a major product that doesn't have a net positive effect on their bottom line. These analysts are worrying their little heads over nothing.
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Old Apr 21, 2014, 10:26 AM   #17
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Right now product categories are collapsing and changing.

Why not have the innards in the cloud and just have everything else be screens?

The Mac watch tablet and phone should be the same thing.

Otherwise how many gizmos are we doing to be encouraged to buy/carry?

The phablet seems like the best fusion of: tablet phone camera phone and iPod.

Last edited by 512ke; Apr 21, 2014 at 10:30 AM. Reason: Sloppy thumbs
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Old Apr 21, 2014, 10:32 AM   #18
iisdan
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****, people don't know how to innovate anymore so the only thing they can think of is reshaping the phone even if it doesn't make sense. Im so sick of these stupid rumours by sheep forcing Apple to do it.
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Old Apr 21, 2014, 10:36 AM   #19
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iPad air is a silly name

It's as bad as the "new" iPad 3G
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Old Apr 21, 2014, 10:59 AM   #20
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Quote:
Originally Posted by iZollo View Post
I do not think that the iPhone 6 will Cannibalize iPad mini sales because even at 5.0 screen the mini screen is still >150% larger. Also even at 5.5 screen it still would be >140% Larger.
This picture overlay is nice. It makes me believe that even a larger iPhone 6 won't be replacing my iPad Mini. At least for how I like to use it.
http://www.displaywars.com/7,9-inch-...-5,5-inch-16x9

----------

Quote:
Originally Posted by FrankySavvy View Post
I still have my doubts about Apple making a 5.5 inch phone. 4.7 inch sounds perfect and I doubt will have any effect on the iPad Mini 7.9 inch. The iPad Mini is still nearly double the screen size of a 4.7 inch phone. I own both the Air and the iPad Mini and the Mini is always my go to device. I hardly notice a difference in screen size. I do however notice going from my iPhone to the Mini.
The screen ratios (16:9 on the iPhone vs 4:3 on the iPad) also makes a huge difference when comparing how many inches. Just take a look at the link I provided above.
And that's looking at a 5.5" phone, so the 4.7" will be even less of an issue. There's just no way a 5.5" screen would take over my casual surfing and what not on the couch.
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Old Apr 21, 2014, 11:01 AM   #21
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Add Touch ID to the iPad mini (and Air) and integrate it with user profiles and the masses will literally line up around the block to buy them.

Just sayin'...
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Old Apr 21, 2014, 11:03 AM   #22
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Quote:
Originally Posted by 512ke View Post
The phablet seems like the best fusion of: tablet phone camera phone and iPod.


You either failed at a joke or if you're serious you really don't get things. A phablet is jack of all trades and master/good at nothing.
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Old Apr 21, 2014, 11:05 AM   #23
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People like these analysts always seem to forget one key point about the iPad. They think having a larger screen on your phone satisfies every reason someone might buy an iPad or iPad Mini. They always forget the software. Its not just about having a larger display, its about the apps. iPad apps and iPhone apps are not the same, even if the iPhone got a larger display.

Granted, I'm sure there are some people who would be satisfied enough with just a larger screen on their iPhone. But I imagine most of the people buying iPads buy it for more reasons than just the simple fact of it having a larger display than an iPhone. It's just a different experience. One is held in your palm, the other is held with two hands like a book/magazine.
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Old Apr 21, 2014, 11:21 AM   #24
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Originally Posted by peteullo View Post
“If you don’t cannibalize yourself, someone else will”
"But sir, they are going to eat us alive..."

"Not If I eat me first!!!"

"That sounds just crazy enough to work..."

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Old Apr 21, 2014, 11:40 AM   #25
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Quote:
Originally Posted by darkslide29 View Post
This picture overlay is nice. It makes me believe that even a larger iPhone 6 won't be replacing my iPad Mini. At least for how I like to use it.
http://www.displaywars.com/7,9-inch-...-5,5-inch-16x9

----------



The screen ratios (16:9 on the iPhone vs 4:3 on the iPad) also makes a huge difference when comparing how many inches. Just take a look at the link I provided above.
And that's looking at a 5.5" phone, so the 4.7" will be even less of an issue. There's just no way a 5.5" screen would take over my casual surfing and what not on the couch.
Great Link showing the size difference and I agree the 5.5" iPhone still will not replace my iPad mini.
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