Survey cites brand loyalty in iPad mini buyers; 75% keeping their existing iPad, too

Posted:
in iPad edited January 2014
iPad mini buyers surveyed by Piper Jaffray indicate more than half already have an iPad, and three quarters of them plan to keep their full size model alongside their new smaller model.

The small survey of 72 buyers, conducted by Piper Jaffray, seeks to profile who is buying Apple's devices and where those sales may be trending. The firm forecasts Apple will sell 1.5 million iPad minis in its 3 day launch weekend, compared to the nearly one million small tablets per month that Google is now selling.

Piper Jaffray's Gene Munster reported in a note to clients that 72 percent of his small survey of iPad mini buyers cited its compact size as their primary reason for buying the device. He concluded that this "reinforces our thesis that iPad Mini may start slower than some other product launches, but gain momentum as consumers recognize the portability benefits of the smaller size."

In contrast, analyst Walter Piecyk of BTIG stated, "we believe Apple?s first weekend sales of the iPad Mini needs, at a minimum, to top the 3 million first weekend sales of the iPad 3 in order to demonstrate that the management team can execute on ramping supply of new products and to provide some evidence that there is adequate demand for a smaller iPad at these price points."

Piecyk's sales threshold would mean that Apple's iPad mini would need to sell over 30 times faster than Google's mini tablet in order to prove that a market exists for small tablets.

Apple is currently only selling the WiFi-only version of iPad mini; the mobile data version, which supports 3G/4G LTE cellular data and includes GPS features, won't be available until later this month.

That fact led Brian J. White of Topeka Capital Markets to note, ?we are projecting Apple to sell 800,000 to 1 million 7.9-inch Wi-Fi iPad minis over the first three days," adding that "demand will prove to be much greater than the sales that Apple will be able to recognize during this period," citing supply constraints. White estimates Apple will sell 7 million iPad minis by the end of the year.

Who's buying the iPad mini?

Munster's small survey notes that initial buyers of the iPad mini represent many repeat customers. While 54 percent of iPad 3 buyers were new to iPad, only 42 percent of iPad mini were, with 11 percent reporting owning the original iPad, 23 percent claiming an iPad 2, and 25 percent saying they just bought iPad 3.

Of current owners, 75 percent said they plan to keep their existing iPad in addition to their new iPad mini. "We believe this suggests that customers purchasing iPad Minis may intend to do less video consumption and more Internet browsing/reading/app usage, which require less storage," Munster wrote.

Munster expects Apple to sell five million iPad minis in the winter quarter. "Ultimately," he added, "we believe it is possible that the iPad Mini could make up the majority of iPad units, although it will likely be beyond the first iteration of the device (currently modeling 28% of iPads in CY13 to be iPad Minis)."
«1

Comments

  • Reply 1 of 24
    Initial purchases were bound to be iDevice users. This survey taken in a month would be more telling.
  • Reply 2 of 24
    I have purchased a total of three iPad 2's for the kids. I think my oldest will be getting the iPad mini for Christmas as she will probably appreciate the extra portability.
  • Reply 3 of 24
    quadra 610quadra 610 Posts: 6,743member


    Apple's got another blockbuster on their hands. But anything to do with more iPad goodness is going to sell in a big way anyway. 

  • Reply 4 of 24

    Quote:

    Originally Posted by monstrosity View Post



    Initial purchases were bound to be iDevice users. This survey taken in a month would be more telling.


     


    True. Apple people are early adopters of everything Apple... Thank you for that, early adopters.

  • Reply 5 of 24
    Oh, seems that I belong to the 75% group.
    I will definitely keep my iPad 2 since it runs my flat rate data plan and my iPad mini which I am patiently waiting for will be WiFi only.
    Makes perfect sense to keep my still jiucy iPad 2.

    If only Siri was available for the iPad 2, they could babysit each other while I am not around.;)
  • Reply 6 of 24
    apple ][apple ][ Posts: 8,654member


    The survey makes sense. Those people who already have iPads and like them and use them alot, will also see the usefulness in having a smaller and much lighter iPad.


     


    I haven't decided if I'm going to get an iPad Mini or not yet. But if I do get one, I'll be keeping my iPad 3 also. They each have their uses.

  • Reply 7 of 24
    Off topic


    What's up with aapl? It's plummeting like crazy without any obvious reason.
    Is this still the aftermath of Sandy? Or is there something I am completely unaware of?
  • Reply 8 of 24
    LOL about the analyst that says they have to sell at least 3 million this weekend! As pointed out this is 30 times what Google is selling...is Google a failure?? They are not even selling the 4G version for 2 more weeks! 3 million or more a month, not a weekend with half a product available would be a market dominating success. I am tired of the analysts building up expectations and causing the stock to drop when they don't meet trumped up and unreachable expectations. It was a crime when they had a blowout quarter ending in September and everyone is disappointed...despite growing their earnings at twice their PE ratio.
  • Reply 9 of 24
    gqbgqb Posts: 1,934member

    Quote:

    Originally Posted by Rabbit_Coach View Post



    Off topic

    What's up with aapl? It's plummeting like crazy without any obvious reason.

    Is this still the aftermath of Sandy? Or is there something I am completely unaware of?


    Institutional investors and their 'analyst' lackeys have to periodically drive the price down to get a buy-in point, otherwise they're locked out.


    So we've seen the phoney maps issue, 'missed' earnings (i.e. the analyst 'missed', not AAPL), 'inability to meet demand (such a problem to have), and the always handy "Steve Jobs never would have..." idiocy, this time around the re-org.


    The big boys will make a killing on this dip. Well played, but it can be stomach churning for us small fries.

  • Reply 10 of 24
    analogjackanalogjack Posts: 1,066member


    "provide some evidence that there is adequate demand for a smaller iPad at these price points"


     


    "price point"? I can't believe they are still using that tired cliché, Apple is not about 'price points', there's a frikken iPod touch at that 'price point' (almost)

  • Reply 11 of 24

    Quote:

    Originally Posted by Rabbit_Coach View Post



    Off topic

    What's up with aapl? It's plummeting like crazy without any obvious reason.

    Is this still the aftermath of Sandy? Or is there something I am completely unaware of?


     


    This is what happens when Zacky and Cramer open their mouths :) Load up as much as you can.

  • Reply 12 of 24

    Quote:

    Originally Posted by monstrosity View Post


     


    This is what happens when Zacky and Cramer open their mouths :) Load up as much as you can.



     


    Cramer is the worst I think. Not surprising that he manipulates given that he was a hedge fund guy who openly admitted this.


    Now he has a network at his disposal to pump and short away.

  • Reply 13 of 24

    Quote:

    Originally Posted by GQB View Post


    Institutional investors and their 'analyst' lackeys have to periodically drive the price down to get a buy-in point, otherwise they're locked out.


    So we've seen the phoney maps issue, 'missed' earnings (i.e. the analyst 'missed', not AAPL), 'inability to meet demand (such a problem to have), and the always handy "Steve Jobs never would have..." idiocy, this time around the re-org.


    The big boys will make a killing on this dip. Well played, but it can be stomach churning for us small fries.



     


     


    Buy more


     


    I did.

  • Reply 14 of 24
    alexnalexn Posts: 119member
    I notice that Mr Piecyk says "we", not "I", which suggests that he is either a chicken or has delusions of royalty. At any rate, he (or they) appears to be inhabiting Cloud Cuckoo Land, judging by the comment in the article about Apple needing to outsell Google's figures by 30 times to "prove that there is a small tablet market". If that conlusion is valid, of course - and I'm not the person to confirm that.
  • Reply 15 of 24


    Here it is, your moment of Zen:


     


    Walter Piecyk of BTIG says the iPad Mini MUST sell 3 million units (THREE MILLION!!) at a MINIMUM in its FIRST WEEKEND, as the PROOF that there is adequate demand for a smaller iPad at these price points.


     


    So, anything less is … "fail sauce"? Of course the implications are, if it doesn't sell at least 3 million the stock will be given another downward shock and, if it say, only sells 2 million in the first weekend, APPLE is DOOMED because that will PROVE there isn't "adequate demand" for a smaller iPad at these prices.


     


    What? Who other than this bonehead says it must sell 3 million in a weekend to show the demand is "adequate"?



    Seriously. How much more ridiculous do these 'analysts' need to be before we just tune them out completely?

  • Reply 16 of 24
    mac_128mac_128 Posts: 3,433member
    "Apple wrote:
    [" url="/t/154021/survey-cites-brand-loyalty-in-ipad-mini-buyers-75-keeping-their-existing-ipad-too#post_2225909"]Those people who already have iPads and like them and use them alot, will also see the usefulness in having a smaller and much lighter iPad.

    I haven't decided if I'm going to get an iPad Mini or not yet. But if I do get one, I'll be keeping my iPad 3 also. They each have their uses.
    With all due respect, and sincerity ... How do you plan to use your iPad mini differently than your iPad 3?

    I'm just curious how the average user sees the strengths in day-to-day use as justification for having both.

    This survey is staggering to me, as I can't really figure out how someone who has a $500+ iPad could justify buying a $330+ mini, for singular personal use, without some pretty task specific applications for which one or the other is poorly suited. Unless of course money is no object and you just collect Apple "toys" because you can ...

    It just seems excessive to me, that's all. I have an iPhone 4, and an iPad. That's pretty much all I need. I prefer the iPad for just about everything, and don't really see wanting to use a smaller tablet for the same tasks. I feel like Apple got it right with the original dimensions. Do I see a market for a small tablet? Sure. But I have a hard time understanding how someone who already has an iPad also NEEDS this too. A replacement? Sure. But in addition to ...? Not sure I see it. My MacBook has a specific use, it does things the iPhone and iPad can't. The iPad is my primary interface these days. The iPhone is for everywhere I can't take my iPad. If I had a mobile device in-between those two iDevices, I'm not sure when I would make the decision to carry it ... It doesn't replace a phone, so I wouldn't carry it instead of an iPhone, and I prefer the bigger iPad screen when using it as an iPad. But then, maybe I haven't thought about how the average consumer might benefit from having all three devices ... I said before it came out it seemed the logical replacement for the Touch. In fact several reviews have said it does everything the Touch does better as it is slightly bigger, and by the same token, more effective than the iPad for games, etc. due to being slightly smaller. Sounds like the perfect place to be if you're also not going to offer an incorporated phone. And I'm not aware of too many average people with an iPhone and iPod Touch, and an iPad.

    Seriously, I wanna know. These things are not inexpensive. What could possibly justify the investment in both, especially if you already have an iPhone?
  • Reply 17 of 24
    philboogiephilboogie Posts: 7,438member
    mac_128 wrote: »
    With all due respect, and sincerity ... How do you plan to use your iPad mini differently than your iPad 3?

    I'm just curious how the average user sees the strengths in day-to-day use as justification for having both.

    This survey is staggering to me, as I can't really figure out how someone who has a $500+ iPad could justify buying a $330+ mini, for singular personal use, without some pretty task specific applications for which one or the other is poorly suited. Unless of course money is no object and you just collect Apple "toys" because you can ...

    It just seems excessive to me, that's all. I have an iPhone 4, and an iPad. That's pretty much all I need. I prefer the iPad for just about everything, and don't really see wanting to use a smaller tablet for the same tasks. I feel like Apple got it right with the original dimensions. Do I see a market for a small tablet? Sure. But I have a hard time understanding how someone who already has an iPad also NEEDS this too. A replacement? Sure. But in addition to ...? Not sure I see it. My MacBook has a specific use, it does things the iPhone and iPad can't. The iPad is my primary interface these days. The iPhone is for everywhere I can't take my iPad. If I had a mobile device in-between those two iDevices, I'm not sure when I would make the decision to carry it ... It doesn't replace a phone, so I wouldn't carry it instead of an iPhone, and I prefer the bigger iPad screen when using it as an iPad. But then, maybe I haven't thought about how the average consumer might benefit from having all three devices ... I said before it came out it seemed the logical replacement for the Touch. In fact several reviews have said it does everything the Touch does better as it is slightly bigger, and by the same token, more effective than the iPad for games, etc. due to being slightly smaller. Sounds like the perfect place to be if you're also not going to offer an incorporated phone. And I'm not aware of too many average people with an iPhone and iPod Touch, and an iPad.

    Seriously, I wanna know. These things are not inexpensive. What could possibly justify the investment in both, especially if you already have an iPhone?

    It is weird, huh? I find myself looking at the mini online, and even though I don't need one, it looks so good and because it's pocketable in my winter coat I'm actually contemplating on buying one. Not because I need one. Heck, I bought the iPad3 while still using the 2010 model (in the kitchen, easy for morning news while making an espresso).

    Gees, there was nothing wrong with my 4 and yet still bought the 5. These products are just desirable.
  • Reply 18 of 24
    kevtkevt Posts: 195member

    Quote:

    Originally Posted by PhilBoogie View Post





    It is weird, huh? I find myself looking at the mini online, and even though I don't need one, it looks so good and because it's pocketable in my winter coat I'm actually contemplating on buying one. Not because I need one. Heck, I bought the iPad3 while still using the 2010 model (in the kitchen, easy for morning news while making an espresso).

    Gees, there was nothing wrong with my 4 and yet still bought the 5. These products are just desirable.


     


    I went to have a look at the Apple Mini in an Apple Store yesterday. It was interesting listening to the comments of other shoppers/browsers. Very favourable reaction, but most already had a 9.7" iPad and still wanted a mini.


     


    After seeing them in the flesh, I changed my online order from white to black.

  • Reply 19 of 24
    mstonemstone Posts: 11,510member

    Quote:

    Originally Posted by TeeJay2012 View Post




     


    Cramer is the worst I think. Not surprising that he manipulates given that he was a hedge fund guy who openly admitted this.


    Now he has a network at his disposal to pump and short away.



    Actually he is smarter than that. If he had any conflict of interest like you suggest he would be fired and also arrested. That is why he has his stock portfolio in a fund which he doesn't directly control.

  • Reply 20 of 24
    mac_128mac_128 Posts: 3,433member
    philboogie wrote: »
    It is weird, huh? I find myself looking at the mini online, and even though I don't need one, it looks so good and because it's pocketable in my winter coat I'm actually contemplating on buying one. Not because I need one. Heck, I bought the iPad3 while still using the 2010 model (in the kitchen, easy for morning news while making an espresso).
    Gees, there was nothing wrong with my 4 and yet still bought the 5. These products are just desirable.
    Absolutely! No denying that ... I'm already thinking how great a mini might be as a dedicated remote control for my Apple TV!! But again, that is a complete luxury item if you already have an iPad ... though I recall paying over $100 for a Sony integrated remote control and remember even more expensive touch screen options being available at my local home theater specialist in the late 90s .,.

    I'm just trying to figure out where it fits realistically in the eco systems for those who already have an iPhone/Touch and iPad.

    I too have kept my original iPad when I bought my iPad 3, which I did primarily for the retina display. I kept the original as a backup, and for traveling to places where there is a legitimate fear of damage or theft. But it otherwise sits idle, and is really a luxury. I certainly would not have replaced it with a mini, however, as the screen real estate is so valuable and the mini not so much smaller as to make a difference in traveling with it.

    The success of the mini will not be as a niche product for users who already have an iPad, nor as a replacement or likely an upgrade. At least I find it hard to imagine it being a 1:1 duplicate purchase for those who already have an iPad. It seems to me that in order to be as successful, it really will have to be adopted widely by those who otherwise couldn't afford an iPad, but wanted one, or adopted by those who have task specific uses which justify a smaller iPad by the average user who cannot otherwise afford the luxury of dropping $330+ on a "toy" to make interfacing with their TV easier. Aside from duplicate purchases by those who already have iPads, it seems to me anybody who would buy an iPod Touch would opt for the mini instead. In which case it will canibalize that entire product line (which seems unconscionable even if Apple can afford it), but as some reviewers have speculated, the Touch appears to be in its final life-cycle anyway and this may indeed be Apple's plan, along with cutting into Android's sub-10" tablet market and adding new customers who couldn't afford an iPad anyway, nor wanted to buy the cheap crap offered by other manufacturers.
Sign In or Register to comment.