iPad Mini Sales Overtaking iPad Sales Faster Than Apple Expected

[MacRumors]

Sales of the iPad mini are cannibalizing sales of the iPad, according to a report from NPD DisplaySearch. January shipments of tablet panels between 7 and 9 inches eclipsed shipments of larger panels, indicating an unexpected shift in consumer preference for a smaller form factor tablet.

Shipments of 9.7-inch panels (the iPad) fell from 7.4 million in December to 1.3 million in January, while shipments of 7.9-inch panels (the iPad mini) rose to over 5 million. Smaller tablet panels, including those used for the iPad mini, the Kindle Fire, and the Google Nexus, saw total shipments of 14 million.

In December, NPD estimated that Apple would sell 40 million iPads minis and 60 million iPads during 2013, but the January sales numbers suggest that the mini will outsell the iPad.

As we noted in December, Apple had planned to sell 40M iPad minis (7.9") and 60M iPads (9.7") in 2013. However, the reality seems to be the reverse, as the iPad mini has been more popular than the iPad. We now understand that Apple may be planning to sell 55M iPad minis (7.9") and 33M iPads (9.7") in 2013.

For much of December and January, the iPad mini was in short supply due to low yield rates of the mini's display panels, with shipping times up to a week. Apple finally reached supply-demand balance earlier this month, which will facilitate even greater sales of the smaller tablet.

During Apple's January earnings call, Apple executives addressed cannibalization fears, indicating that the company is not worried about iPad mini sales overtaking iPad sales.

Cannibilization is a huge opportunity for us. We never fear it because if we do, someone else will do it. iPhone has cannibalized iPod, that doesn't worry us. iPad has on the Mac, and that doesn't concern us.

Currently, the full-sized iPad is an attractive choice because of its Retina display, but Apple is rumored to be releasing a second generation iPad mini with Retina later this year.

Article Link: iPad Mini Sales Overtaking iPad Sales Faster Than Apple Expected

[shanmugam]

make it lighter, then full size iPad and Mini will split the share.

For longer period of use I go with iPad 4 and for games and simpler stuff i use the iPad mini.

[Chaszmyr]

Doesn't surprise me at all. I've had an iPad since it came out, and always said that a smaller version would be much more suitable for some tasks. Ever since the iPad mini came out, I no longer use my big iPad for anything other than watching video, even though the mini feels underpowered and I wish it had a retina display

[dlewis23]

This doesn't really surprise me. I've seen more use from the iPad mini over the full size iPad and even iPhones in the past 2 months on some of my apps.

[lordofthereef]

The mini was the first iPad I actually wanted for myself (and then ended up getting one for the wife only ). Perfect size in that it still gives me that extra space for when the phone isn't enough, but it is easy to grab a hold of with one hand. The price point is pretty fantastic too!

[camnchar]

When it was first announced, I thought Apple was crazy to price it at $329. Clearly I was wrong.

[Gunny011]

"iPad mini won't sell" they said, "iPad Mini will be a flop" they said...

[b11051973]

I love the mini. I much prefer the size to the 9.7" iPads.

The one thing to remember is they may be eating into sales of the 9.7", but the $200 Nexus 7 was probably eating into them too. So, coming out with something a little cheaper is better than completely losing out to other tablets.

[gmanist1000]

People will buy whatever is cheaper. If they have to settle for a smaller screen, they will.

[BMcCoy]

The most interesting part of that bar chart is the apparently very strong sales of the Galaxy tab 10.1

(But I think there are several 7" tablets..?)

[3N16MA]

- Cheaper
- Lighter
- More portable
- Easier for smaller hands (women, kids)
- Easier to use with one hand
- Works better as an e-reader


Makes sense.

[Pez555]

i thought this was obvious?

you provide a cheaper product of similar quality, its going to sell more.

[georgB]

Hate to say it (well, not really), but I TOLD YOU SO. For years, I've been saying that a smaller Mac, still a Mac, not a Smartphone, would be a dynamite must-have - not just for me. The smaller iPad is the closest, so far, and if they'd only add a real keyboard, they'd have a real blockbuster.

[ArtOfWarfare]

Originally Posted by gmanist1000

People will buy whatever is cheaper. If they have to settle for a smaller screen, they will.

I think numerous people will disagree with you, namely those who bought a 27" iMac instead of a 21", those who bought a iPod Classic over the Nano, those who bought a Mac over a PC, and so on.

Costing less money is nice, but everything has value. Evidently having a screen be 44% bigger and has 300% more pixels isn't worth a price that's 50% higher, for most tablet buyers (and users, based on comments in this thread.)

I wonder if Apple's stock will drop on this news... I imagine they make more per iPad sold vs. iPad Mini sold.

Edit:

Each iPad sold nets Apple $190 while each iPad Mini sold nets Apple only $140.

Old Projection:
40 minis * $140 = $5600M
60 fulls * $190 = $11400M
Total = $17B

New Projection:
55M minis * $140 = $7700M
33M fulls * $190 = $6270M
Total = $14B

Ouch.

[teknikal90]

i dont understand this ipad mini popularity...
i have one but 90% of the time, i reach for my full size ipad...
to me using an ipad mini is like using a big ipod touch..not big enough to give a 'full experience'. browsing on a big ipad to be feels comparable to browsing on a laptop. on an ipad mini, it isnt.

[DipDog3]

Originally Posted by camnchar

When it was first announced, I thought Apple was crazy to price it at $329. Clearly I was wrong.

Seriously, I thought no one would buy it at that high a price.
I guess Apple knew better.

[ziggyonice]

Duh — get the full iPad experience for cheaper than a full iPad?

Sold. (Literally.)

Has very little to do with 7" vs. 10" tablets. It's all about cost when it comes to average, non-techy consumers.

[somethingelsefl]

iPad Mini sells more than iPad?

Then an EVEN SMALLER iPad Mini would sell EVEN MORE!

OH wait....that's an iPhone.

[samcraig]

Better for Apple to cannibalize itself vs another company to take their business away. Which was bound to happen if Apple didn't put out something less expensive and smaller to compete.

[0815]

I own all the iPads models (for development) .... my top favorite is the iPad mini. Why? Weight! It is so super light compared to the big brothers and whenever I pick up one of the older ones (that are now used by the rest of the family), I think: wow, what a brick. I don't mind the smaller screen, it is good quality and also good for reading. First I thought I will hate it (got it mostly for development to test software on the smaller screen) - but it became quickly my favorite iPad (and honestly, I don't miss the retina display)

[slffl]

It's a really hard choice. I like them both. If I only had to chose one it would probably be the iPad 9.7 since it's about to replace my iMac. Otherwise, I'll eventually own both.

[Renzatic]

In before arguments that Apple should drop the iPad Fat because it's not maximizing their profits!

[cloudness]

"Cannibalization"? More like Apple saw a segment of the market they didn't cover, and where they didn't want to be left behind. One sale of an iPad mini might prevent the sale of a iPad, but it moreso can prevent the sale of a similarly sized Samsung Galaxy Note.

[slffl]

Originally Posted by 3N16MA

- Cheaper
- Lighter
- More portable
- Easier for smaller hands (women, kids)
- Easier to use with one hand
- Works better as an e-reader


Makes sense.

Why does it make sense? Yet when people talk about the iPhone they want bigger? It makes no sense at all!

[yesnek]

Not surprised at all.
Next to an iPad mini the original sized iPad looks massively outdated, almost clumsy