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Apple suppliers say iPhone 5 demand still strong, iPad mini cannibalizing 9.7" iPad - Page 2

post #41 of 61
12/12/12 at 10:58am
Quote:
Originally Posted by Rayz View Post

The reason is very simple: Apple doesn't design products for cheapskate tech nerds who hang around in web forums wailing about how they'll jump to Android if the next iPhone doesn't have a sixty-inch screen, a fifty-year battery life, runs OSX, fits in a matchbox, and costs $29.99

Apple designs products for busy people with... er... lives.
what you said. 1smoking.gif
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post #42 of 61
12/12/12 at 11:02am

iPad mini sales are cannibalizing iPad sales because 

a) iPad mini is brand new.

b) The quiet refresh of the regular iPad was awkward.

 

I think they need to go back to a one year cycle with iPad, give it it's due roll out, and go back to naming it iPad 3, iPad 3S, iPad 4, etc. If they want people to feel compelled to keep buying new models, they need to make it more clear that the new models are actually major releases. Hell, the newest version is called iPad, and it sells next to iPad 2. It's confusing. Marketing seriously clunked up.

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post #43 of 61
12/12/12 at 11:05am
Quote:
Originally Posted by alcstarheel View Post

My thought has been that they could have priced the mini cheaper, yes. But..I feel they priced in the cost of the retina beforehand. It took them two iterations before they got retina on the iPad Maxi (I had to) where it was still able to keep their margins. No price increase from non-retina to retina. I see that same thing happening for the mini. Yes they could have done retina now but at what cost..plus the reasoning that the mini needed to run current iPad apps with no problems out of the gate. I'm with JeffDM that the retina mini won't be until 2014 but I'm thinking spring instead of fall. People will be itching for it.

And I should add that I love my mini. Easy, light..screen doesn't bother me and I have a 5. My original iPad (I know..long tooth) doesn't really get used anymore.

I believe it was this size that Apple wanted to do all along. I think it was easier for them to come out with the iPad Maxi first and then shrink it (smaller, lighter, lower cost) instead of the upsell they would have needed by coming out with a 7.9" first and enlarging it to 9.7" (bigger but heavier and more costly).
Yeah the price point makes sense now. Not too impactful if it is cannibalizing the iPad. Won't need to increase price when retina version comes out. Also if this gets people to buy an iPad who otherwise wouldn't have and thus increases overall sales of iPad that's a plus for Apple even if the margins are lower.

But rest assured if revenues are lower and margins are compressed because of mini the stock will tank, even though all these "analysts" thought the mini was overpriced when it came out. 1rolleyes.gif
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post #44 of 61
12/12/12 at 12:11pm
The people that couldn't see a reason for the iPad Mini need to have their heads examined. As to cannibalization I don't think that is much of an issue as economic uncertainty, next year will hit a lot of people much harder than they might have considered at election time. The real question isn't how much iPad 4 sales have declined it is rather a question of total iPad sales. If the total number of iPads shipped decline that is a problem but I suspect that it will actually be a net increase.
Quote:
Originally Posted by Rogifan View Post

Perhaps Apple underestimated iPad mini demand? I'm actually surprised at how well the product has been received. I fully expected the iHaters to whine about no retina, A5 chip, etc. but in almost every review I've read th design, form factor battery life and ecosystem out weighted lack of retina. In fact David Pogue at the NY Times said if he was stranded on an island and could only have one gadget with him it would be the mini.
The only thing that is keeping me from updating either my iPad or iPhone is the flash allocation in the machines. Especially with iPad more flash at a given price point is a very important requirement. As for those columnist why bother with the corruption of the printing industry? I mean seriously how can you really trust the opinions of these guys or even bother to quote them?
Quote:
If Apple can find a way to get retina into this form factor with the same great battery life other tablets will be in a world of hurt. Especially if the 5th gen iPad gets thinner and lighter. Game over.

Retina isn't the only thing of importance here.
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post #45 of 61
12/12/12 at 12:49pm
Quote:
Originally Posted by Mazda 3s View Post

I'm sorry, but where is the source link for this story? AI quotes all this information, but doesn't provide a source to where they got it from.
Originally Posted by JeffDM View Post


I think those notes are provided as part of a subscription service. I hope the more investment oriented forum members can clarify that more.
 
Investment firms provide research to their customers as a sort of perk, with the understanding that if you like the research you will reciprocate by trading with them, and they get the commission. If you keep doing business with them, they keep giving you access to the research, and the best customers can talk directly to the analysts. I think they also provide research (or highlights in the form of a press release) to the media sometimes, for publicity purposes, but it's not generally available to the public for free.
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post #46 of 61
12/12/12 at 2:09pm
So the iPhone cannibalized the iPod The iPad cannibalized the Mac. The iPad mini cannibalized the iPad. I just hope Apple doesn't get Kuru.

"Blank! BLANK! You're not looking at the big picture!"

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"Blank! BLANK! You're not looking at the big picture!"

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post #47 of 61
12/12/12 at 3:56pm
Why is cannibalization a problem, when it comes from another product of yours?

It is ALWAYS BETTER to cannibalize yourself first, before a competitor does it!
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post #48 of 61
12/12/12 at 4:21pm
Quote:
Originally Posted by paxman View Post

I wonder if the 13" MBP cannibalizes sales of the 15" MBP? 

If so, should there only be one MBP? Personally I think it was inevitable and instead of looking at cannibalization we need to look at overall tablet sales.

I also think Apple suspected this was going to happen and priced the mini accordingly.

Exactly.

Apple has 2 sizes of Macbook Air... 2 sizes of Macbook Pro... 2 sizes of Retina Macbook Pro... 2 sizes of iMac.

Having 2 sizes of iPad seems par for the course.

Since Apple makes a profit on ALL of the aforementioned products... it really doesn't matter which one you buy.
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post #49 of 61
12/12/12 at 6:19pm
Quote:
Originally Posted by DaHarder View Post

"He also added that demand for the iPad mini remains strong, suggesting consumer preferences are simply shifting to the smaller form factor"...
A device that's primarily hand-held, providing near-identical functionality to a larger/heavier/more costly one is doing well in a smaller/lighter/cheaper package... You Don't Say?

 

I prefer the larger iPad. I've used both.

DaHarder just got banned. Let's crack open the champagne.

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DaHarder just got banned. Let's crack open the champagne.

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post #50 of 61
12/12/12 at 6:21pm
Originally Posted by Michael Scrip View Post
Since Apple makes a profit on ALL of the aforementioned products... it really doesn't matter which one you buy.

 

The profit margin on each matters to Apple. Or should, at least.

PhilBoogie
That's Google alright. For a stupid company they sure do dumb things.
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PhilBoogie
That's Google alright. For a stupid company they sure do dumb things.
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post #51 of 61
12/12/12 at 6:42pm
Quote:
Originally Posted by Tallest Skil View Post

The profit margin on each matters to Apple. Or should, at least.

True.. and that goes back to the comment I was replying to. He said "Apple suspected this was going to happen and priced the mini accordingly"

Apple knows what they want to make on each unit... and sets the price.

But yeah... how much they make depends on which model someone buys.

Apple might make $150 on the iPad 4... but only $100 on the iPad Mini.

But ZERO dollars if they buy a competitor's tablet.

In that case... it's better to get someone into the iPad Mini instead of no Apple tablet at all.
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post #52 of 61
12/12/12 at 6:46pm
Quote:
Originally Posted by Michael Scrip View Post

True.. and that goes back to the comment I was replying to. He said "Apple suspected this was going to happen and priced the mini accordingly"
Apple knows what they want to make on each unit... and sets the price.
But yeah... how much they make depends on which model someone buys.
Apple might make $150 on the iPad 4... but only $100 on the iPad Mini.
But ZERO dollars if they buy a competitor's tablet.
In that case... it's better to get someone into the iPad Mini instead of no Apple tablet at all.

I like this comment much better than your previous one as it acknowledges that no sale, or a lost sale to a competitor, could also affect the bottom line in the short and long term.

"Blank! BLANK! You're not looking at the big picture!"

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"Blank! BLANK! You're not looking at the big picture!"

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post #53 of 61
12/12/12 at 9:31pm
If it is stealing share from the iPad iPad, i suspect two reasons. The Mini is a great size for me and many others, and the drawbacks many mention don't bother me at all.

But I also see the next iPad in the Mini. If it looks like that (so thin and light for its size, but larger screen) I am buying one. Thus I suspect many others are waiting as well. The weight will drop and it will be a pleasure to hold and use.
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post #54 of 61
12/12/12 at 9:56pm
Quote:
Originally Posted by SolipsismX View Post

I like this comment much better than your previous one as it acknowledges that no sale, or a lost sale to a competitor, could also affect the bottom line in the short and long term.

Thanks!
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post #55 of 61
12/12/12 at 11:25pm
Quote:
Originally Posted by Rogifan View Post

Quote:
Originally Posted by Rayz View Post

The reason is very simple: Apple doesn't design products for cheapskate tech nerds who hang around in web forums wailing about how they'll jump to Android if the next iPhone doesn't have a sixty-inch screen, a fifty-year battery life, runs OSX, fits in a matchbox, and costs $29.99

Apple designs products for busy people with... er... lives.
what you said. 1smoking.gif

+1
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post #56 of 61
12/12/12 at 11:45pm
Apple is damned if it does and damned if it doesn't. I've stopped taking any notice whatsoever of what these so-called "analysts" spew forth. Viewing entrails would probably be more accurate. "...a bunch of mindless jerks...", to quote the late Douglas Adams. Or a bunch of paid shills.

I liked the iPad Mini, but when it came time to actually get one, I went with the 4th Gen iPad with LTE/GPS instead. As I use the iPad (and its iPad1 predecessor) largely for web browsing (at the moment), I found the Mini, great though it is, to be a bit constraining. That's my own preference, and I haven't regretted my choice. If someone upped and gave me a Mini I wouldn't say no, though 1wink.gif.

The new iPad is super cool, in my opinion.

(Hmmm...As an aside, I just caught the auto-corruptor "correcting" "its" (wrongly inserting an apostrophe). What _ing illiterate programmed the so-called "auto-corrector"? No wonder people have trouble with apostrophes.)
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post #57 of 61
12/13/12 at 10:34am
Quote:
Originally Posted by Tallest Skil View Post

The profit margin on each matters to Apple. Or should, at least.

 

Both profit margin and absolute profit matters to Apple.  Hence the lack of an xMac and the way the mini is carefully positioned against the iMac.  Apple wants both high margins and high ASPs.

 

Of course the profit on the iPad mini regardless of which way you look at it is far greater for Apple than on the Nexus 7.

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post #58 of 61
12/13/12 at 11:13am

This was easy to see coming.  Apple effed up big time by gimping the iPad Mini's display, if it had been retina, then a higher price would have been justified and cannibalization of the larger iPad wouldn't have been an issue.  

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post #59 of 61
12/13/12 at 11:17am
Quote:
Originally Posted by wizard69 View Post


The only thing that is keeping me from updating either my iPad or iPhone is the flash allocation in the machines. Especially with iPad more flash at a given price point is a very important requirement. 

 

Flash allocation is of minor importance given the robust iCloud integration.  A lack of a retina display affects usability far more, and places the iPad Mini below much of the competition.  It's selling based on the iPad brand and name, but handle one next to an Android tablet with higher resolution, and the mini is pretty mediocre.

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post #60 of 61
12/13/12 at 11:19am
Originally Posted by Junkyard Dawg View Post
This was easy to see coming.  Apple effed up big time by gimping the iPad Mini's display, if it had been retina, then a higher price would have been justified and cannibalization of the larger iPad wouldn't have been an issue.  

 

Except nothing here is correct.

PhilBoogie
That's Google alright. For a stupid company they sure do dumb things.
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PhilBoogie
That's Google alright. For a stupid company they sure do dumb things.
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post #61 of 61
12/13/12 at 12:11pm
Quote:
Originally Posted by Junkyard Dawg View Post

This was easy to see coming.  Apple effed up big time by gimping the iPad Mini's display, if it had been retina, then a higher price would have been justified and cannibalization of the larger iPad wouldn't have been an issue.  

 

Folks would have paid for a more expensive iPad Mini Retina but a more expensive, heavier and bulkier iPad Mini?  Not so much I think.

 

I doubt Apple made the decision based on price but performance...in this case critical performance metrics included size and weight.

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