'Insatiable demand' for iPad mini drives stock-outs in China

Posted:
in iPad edited January 2014
Customers in both Hong Kong and China have demonstrated considerable interest in Apple's newly launched iPad mini, leading to stock-outs and limited availability.

Brian White of Topeka Capital Markets said his checks in China and Hong Kong have found there is "insatiable demand" for the iPad mini. While Apple's smaller iPad launched in Hong Kong on Nov. 2, nearly all models of the 7.9-inch tablet were completely sold out this week.

And in mainland China, the iPad mini went on sale Dec. 7, where it was also met with strong interest. The iPad mini has also been out of stock at Apple's retail stores in China this week, White said.

"Prior to the China launch, we indicated that the iPad mini would be the 'next big thing in China' and we believe this phenomenon is starting to develop," he said. "In our view, the smaller form factor and lower price point will allow Apple to sell the iPad mini in more meaningful volumes versus the regular-size iPad."

In fact, his checks in both Hong Kong and China have found that the iPad mini has already proven more popular with consumers than the fourth-generation iPad.

iPad mini


As for the iPhone 5, Apple's latest smartphone debuted on Sept. 21 in Hong Kong and Dec. 14 in China. Over the past week, iPhone 5 stock has improved and is now more widely available for walk-in customers in both Hong Kong and mainland China.

"After the Galaxy S III and Galaxy Note I/II became more popular than the iPhone 4S in recent months, our discussions now indicate that the iPhone 5 has recently become the most popular high-end smartphone at the resellers that we spoke with," he said.

Topeka Capital Markets has maintained its 12-month price target of $1,111 for AAPL stock. White is especially bullish on Apple, with a price target nearly twice the company's current trading price, and significantly higher than an average target of $740 among major analysts.
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Comments

  • Reply 1 of 48


    Butbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbut… one guy in line!

  • Reply 2 of 48


    small hands ?

  • Reply 3 of 48


    It's funny how popular enormous phones and tiny tablets are becoming.

  • Reply 4 of 48
    Butbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbut… one guy in line!

    That was the fool who thought he was getting a mini

    1000
  • Reply 5 of 48

    Quote:

    Originally Posted by Tallest Skil View Post


    Butbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbut… one guy in line!



     


    Must quote this. 


     


    Works every damn time.    :)

  • Reply 6 of 48


    I like to imagine it's like Build a Bear workshop, since they're building for the local market.  You get to walk in, select the specs, build it yourself, name it...


     


    Happy times.

  • Reply 7 of 48
    jungmarkjungmark Posts: 6,647member


    This is good news so that means Apple stock will fall...wait a sec.

  • Reply 8 of 48
    Shouldn't this article include at least quotes from 3 other analysts claiming Apple has peaked?
  • Reply 9 of 48
    The seemingly 'insatiable demand' is actually global, isn't it? Apple can't make enough to meet demand worldwide yet. That China is low on stocks just means other people in the world want them too...

    Also, since we're right in the midst of an otherwise mostly-global gifting holiday season at the same time as these "checks", it's not surprising stocks might be a bit low pretty much everywhere at the moment. it'll be awhile before Apple satisfies the world's 'insatiable demand' for these products. It isn't only China/Hong Kong...
  • Reply 10 of 48
    lkrupplkrupp Posts: 6,702member


    Well we know one thing for sure now. Analysts are lying through their teeth. So which ones are lying? The bulls or the bears? That's what we need to find out. For every positive analyst there is a negative one. Personally I think analysts should be open to lawsuits if their "advice" hurts investors. But I'm pretty sure they can hide behind the old "it's just my opinion" argument.

  • Reply 11 of 48
    antkm1antkm1 Posts: 1,441member


    Man, did I ever call this a month ago.


    http://forums.appleinsider.com/t/154670/apples-ipad-dominates-with-71-share-of-chinas-growing-tablet-market#post_2238678


     


     


    I paraphrase myself:


    Quote:


    I too see this in china...so I have no doubt that the iPad and especially the iPad mini and iPhone 5 are going to be a huge hit. Traveling to Beijing on business 50% of the year for me, I can see this daily when there. I don't see a lot of tablets on the subways, but when I do they are iPads [infrequently] or other 7"er's [much more frequently]. with the addition of the mini, I can easily see a huge increase in tablets in china. The mini will also be a huge hit mainly because personal space in public is such a premium. i recall my last trip in particular...daily commutes on the subway having other riders leaning on each other because of the sardine-can like situations at rush hour.



    ...mini is going make those sales number substantially greater...


  • Reply 12 of 48
    apple ][apple ][ Posts: 8,360member


    Based on this news, I expect shares of AAPL to tumble at least 4.5%.

  • Reply 13 of 48
    jungmarkjungmark Posts: 6,647member
    M
    "Apple wrote:
    [" url="/t/155231/insatiable-demand-for-ipad-mini-drives-stock-outs-in-china#post_2251883"]Based on this news, I expect shares of AAPL to tumble at least 4.5%.

    Good Apple news = sell
    Record breaking Apple news = hold
    Earth shattering Apple news = cautious buy
  • Reply 14 of 48
    ksecksec Posts: 1,549member
    It's funny how popular enormous phones and tiny tablets are becoming.

    Yes. I am still thinking the fundamental design for User Experience; Hardware Wise should be different from Eastern Part of the world to Western Part of the world.
    Due to culture difference etc...

    I would argue Chinese are used to bigger phones simply because Chinese is a complex languages in terms of Fonts. Where Default Font Size is 10 in English most would start with 12 in Chinese. Reading with Small Fonts, no matter how smooth the fonts are, will just causes headache. And that is why Samsung, Or Large screen Phones sold much better in China. In Korea and Japan where the fonts are less complex the pick up rates are better.

    Not to mention Asians Play Hell a lot more Console like Video Games in Portable Devices then any other part of the world. Small Screen just dont work on these usage patterns. Of coz these could be solved if apple decide to use the left / right part next to top speaker as buttons and Around the Home Button as Direction Pad. But the chances of Apple doing this is likely zero.
  • Reply 15 of 48


    Originally Posted by ksec View Post

    Not to mention Asians Play Hell a lot more Console like Video Games in Portable Devices then any other part of the world. Small Screen just dont work on these usage patterns.


     


    Never had a GameBoy, did you?

  • Reply 16 of 48
    hmmhmm Posts: 3,405member

    Quote:

    Originally Posted by Tallest Skil View Post


    Butbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbutbut… one guy in line!





    You puzzle me at times. We don't get a lot of troll responses on here, yet you imagine what they might be.


     


     


    Quote:

    Originally Posted by Tallest Skil View Post


     


    Never had a GameBoy, did you?



     


    Those didn't rely on a touch screen. They used analogue control pads and a couple buttons. I disagree with the idea that games don't work on an iphone when iphone games are ridiculously popular among kids.

  • Reply 17 of 48
    adamcadamc Posts: 566member

    Quote:

    Originally Posted by ksec View Post





    Yes. I am still thinking the fundamental design for User Experience; Hardware Wise should be different from Eastern Part of the world to Western Part of the world.

    Due to culture difference etc...

    I would argue Chinese are used to bigger phones simply because Chinese is a complex languages in terms of Fonts. Where Default Font Size is 10 in English most would start with 12 in Chinese. Reading with Small Fonts, no matter how smooth the fonts are, will just causes headache. And that is why Samsung, Or Large screen Phones sold much better in China. In Korea and Japan where the fonts are less complex the pick up rates are better.

    Not to mention Asians Play Hell a lot more Console like Video Games in Portable Devices then any other part of the world. Small Screen just dont work on these usage patterns. Of coz these could be solved if apple decide to use the left / right part next to top speaker as buttons and Around the Home Button as Direction Pad. But the chances of Apple doing this is likely zero.


    No wonder the iPhone 5 is not selling well in China.../s


     


    No wonder the samsung are selling better than the iPad mini which is much bigger than the s3 or note.........../s

  • Reply 18 of 48
    sr2012sr2012 Posts: 896member
    I honestly have nothing snarky to say. Apple is a highly coveted brand still, and they will never in the next 3 years fulfill the demand for iOS devices there, particularly the "latest" gadgets, since nothing says "f* off I am a successfull person" like the latest Apple and Samsung dangled in front of your hapless subjugates of whatever ethnicity.

    Education? Pedigree? Common-sense? Bank account balance? Pfft. Flashing an iPad mini, iPhone, Samsung S3 is all that matters in Asia.

    My previous manager in Malaysia had a... not a Tag Heuer but one of those other ones... Used to love to place his hands on the desk just nicely so you couldn't help but notice his expensive watch that regular employees could not afford unless they went without lunch for a month (even then, not even close).

    OK, I did have something snarky. Indeed, perhaps not politically correct, but nothing violating the rules of this forum, I assure you. Carry on...

    Edit: That's right, it was a Tissot... Not even a fantastic brand, yet he was so up his own a**...
  • Reply 19 of 48
    jragostajragosta Posts: 10,473member
    ksec wrote: »
    Not to mention Asians Play Hell a lot more Console like Video Games in Portable Devices then any other part of the world. Small Screen just dont work on these usage patterns. .

    If small screens don't work for portable gaming, perhaps you'd like to explain this:
    http://www.pcworld.com/article/243542/android_ios_games_rake_in_more_cash_than_sony_and_nintendo.html
  • Reply 20 of 48
    sr2012sr2012 Posts: 896member
    hmm wrote: »
    You puzzle me at times. We don't get a lot of troll responses on here, yet you imagine what they might be.

    That's what's so awesome. He can troll himself. :smokey:
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