iPad Shipments Lowered Because of iPad Mini Cannibalization?

Discussion in 'iOS Blog Discussion' started by MacRumors, Dec 12, 2012.

  1. MacRumors macrumors bot


    Apr 12, 2001

    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.
    Article Link: iPad Shipments Lowered Because of iPad Mini Cannibalization?
  2. JGIGS macrumors 6502a


    Jan 1, 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.
  3. gnasher729 macrumors P6


    Nov 25, 2005
    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.
  4. gmanist1000 macrumors 68030


    Sep 22, 2009
    Better to be cannibalized by your own products.

    This happened with iPod nano, and the iPod mini as well.
  5. blackburn macrumors 6502a


    Feb 16, 2010
    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.
  6. WhoDaKat macrumors 6502

    May 20, 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.
  7. qtrim macrumors regular


    Oct 7, 2011
    What a dumb observation. That like saying 6ft bed Ford F-150's are cannibalizing the 8ft bed versions. Who cares?
  8. The Bulge macrumors 6502

    Oct 27, 2012
    Up your ass.
  9. teknikal90 macrumors 68030


    Jan 28, 2008
    Vancouver, BC
    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.
  10. pgiguere1 macrumors 68020


    May 28, 2009
    Montreal, Canada
    In other news, the MacBook Pro sales are cannibalized by Retina MacBook Pro sales.

  11. angrynstupid macrumors regular

    Jan 26, 2010
    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.
  12. Szarky macrumors 6502a

    Jul 29, 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. :D
  13. ArtOfWarfare macrumors G3


    Nov 26, 2007
    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.
  14. Patriks7 macrumors 65816


    Oct 26, 2008
    I'm not sure whether this is actually serious or it's magically April 1st?
  15. kas23 macrumors 603


    Oct 28, 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:


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

  16. Capt Underpants macrumors 68030

    Capt Underpants

    Jul 23, 2003
    Austin, Texas
    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.
  17. The Bulge macrumors 6502

    Oct 27, 2012
    Up your ass.
    That's only true if sale of a regular sized ( :D) 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.
  18. lowbatteries, Dec 12, 2012
    Last edited: Dec 12, 2012

    lowbatteries macrumors regular

    Mar 21, 2008
    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.

    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.
  19. gnasher729 macrumors P6


    Nov 25, 2005
    "If you don't cannibalise your own products, someone else will". Don't know exactly who said it.
  20. nagromme macrumors G5


    May 2, 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!)
  21. The Bulge macrumors 6502

    Oct 27, 2012
    Up your ass.
    If the bottom line stays the same or even gets better i really don't know why that would be a problem.
  22. Gasu E. macrumors 601

    Gasu E.

    Mar 20, 2004
    Not far from Boston, MA.
    Not comparable, as the colors will not impact gross margins.
  23. teknikal90 macrumors 68030


    Jan 28, 2008
    Vancouver, BC
    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?
  24. dampfnudel macrumors 68030

    Aug 14, 2010
    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.
  25. Chip NoVaMac macrumors G3

    Chip NoVaMac

    Dec 25, 2003
    Northern Virginia

    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? :D

Share This Page