Unfortunately people are cheap. Too many people opt for the cheap iPadMini which leads to lower revenue, lower gross margins, and lower profits. The only way I see iPadMini surviving is if the difference is price to the Air is $50. At $100 difference the impact of margins is too high.
Apple literally needs to sell 3 iPad's to make the same profit as a single iPhone.
Maybe Apple shouldn't lean on the phones for so much of their profit. Need the diversification of products.
Rubbish rumour, iPad mini, iPad air, ipad pro. That's the line up. No reason to drop the mini, it's perfectly sized for tons of applications that benefit it and don't fit that well neither 6 plus nor the iPad air. Some folk might like a normally sized phone and a mini to go along. Others can make do with a large phone and get an air instead as a larger device. Yet more others will see that a regular size iPhone + an iPad mini for portability + and iPad pro leaves the iPad air out of the picture. There's certainly very much a space for the mini esp. for those who dislike large phones and still want something small to fit their pocket.
I have the original mini, but it's been hijacked and confiscated by my gf, and I never touch it.
Kill the mini, I don't give a crap! And I'm really glad that Apple decided to gimp it this year and not upgrade it, besides adding Touch ID to it, and some gold coloring!
I'm all about larger iPads! Bring on the 12.9"!
Couldn't agree more. The iPad Mini is the first -- and only -- Apple product I've bought that I simply do not use. It's beautiful, but it's also redundant in my lineup.
Hopefully this is BS. But seeing as how the mini got a pathetic update this year I wouldn't be surprised if it's true. Bean counters (and yes I include Schiller in that bunch) running the show now so if the Air, "Pro" and 6 Plus bring in more $$ then it's bye bye mini. Which would be a shame. I know several mini owners who love the device and think it's the perfect size.
"It turns out the same thing can happen in technology companies that get monopolies, like IBM or Xerox. If you were a product person at IBM or Xerox, so you make a better copier or computer. So what? When you have monopoly market share, the company's not any more successful.
So the people that can make the company more successful are sales and marketing people, and they end up running the companies. And the product people get driven out of the decision making forums, and the companies forget what it means to make great products. The product sensibility and the product genius that brought them to that monopolistic position gets rotted out by people running these companies that have no conception of a good product versus a bad product.
They have no conception of the craftsmanship that's required to take a good idea and turn it into a good product. And they really have no feeling in their hearts, usually, about wanting to really help the customers."
I think the Mini sold well, but the Air really took away a lot of reason for choosing it. The 6 Plus also took more reason away. Now it's squeezed between a larger iPad that actually, to many, feels lighter than the 'mini' iPad, and a phone that appeals to people looking to save money.
One would assume when Apple released the mini they knew what was on the roadmap for the future - e.g. a larger phone and thinner/lighter full sized iPad. So that begs the question - was the mini really just a reaction to the market? Was it Apple panicking a bit with the media buzz all over these smaller cheaper "iPad killers"? Or did Apple release the mini knowing it would be a short lived product eventually replaced by a thinner/lighter full sized iPad?
"It turns out the same thing can happen in technology companies that get monopolies, like IBM or Xerox. If you were a product person at IBM or Xerox, so you make a better copier or computer. So what? When you have monopoly market share, the company's not any more successful.</p>
<p style="margin:0px 0px 10px;padding-left:30px;">So the people that can make the company more successful are sales and marketing people, and they end up running the companies. And the product people get driven out of the decision making forums, and the companies forget what it means to make great products. The product sensibility and the product genius that brought them to that monopolistic position gets rotted out by people running these companies that have no conception of a good product versus a bad product.</p>
<p style="margin:0px 0px 10px;padding-left:30px;">They have no conception of the craftsmanship that's required to take a good idea and turn it into a good product. And they really have no feeling in their hearts, usually, about wanting to really help the customers."</p>
In a wide-ranging discussion, Ive said he’s proud of Apple because it creates great products, not because of its surging revenue or world-leading market valuation. Profits follow the products, he said
To emphasize his point, Ive said he didn’t know the $183 billion in annual revenue, or $40 billion in profit, that Apple reported last week for the fiscal year ended September.
“I honestly don’t know the numbers,” said Ive. “But I know they are high.”
Rubbish rumour, iPad mini, iPad air, ipad pro. That's the line up. No reason to drop the mini, it's perfectly sized for tons of applications that benefit it and don't fit that well neither<span style="line-height:1.4em;"> 6 plus nor the iPad air. Some folk might like a normally sized phone and a mini to go along. Others can </span>
make<span style="line-height:1.4em;"> do with a large phone and get an air instead as a larger </span>
device. Yet more others will see that a regular size iPhone + an iPad mini for portability + and iPad pro leaves the iPad air out of the picture. There's certainly very much a space for the mini esp. for those who dislike large phones and still want something small to fit their pocket.
Apparently there's not space for it with the bean counters. Just like there's no space for 32GB anymore. Why have 32GB when Phil "upsell" Schiller can offer you 64GB for the same price (even though you don't need it) and increase ASPs at the same time. What a genius! I'm sure he got extra stock options for thinking that scheme up. While elsewhere in the company employees are wondering why iOS upgrades have slowed.
"It turns out the same thing can happen in technology companies that get monopolies, like IBM or Xerox. If you were a product person at IBM or Xerox, so you make a better copier or computer. So what? When you have monopoly market share, the company's not any more successful.</p>
<p style="margin:0px 0px 10px;padding-left:30px;">So the people that can make the company more successful are sales and marketing people, and they end up running the companies. And the product people get driven out of the decision making forums, and the companies forget what it means to make great products. The product sensibility and the product genius that brought them to that monopolistic position gets rotted out by people running these companies that have no conception of a good product versus a bad product.</p>
<p style="margin:0px 0px 10px;padding-left:30px;">They have no conception of the craftsmanship that's required to take a good idea and turn it into a good product. And they really have no feeling in their hearts, usually, about wanting to really help the customers."</p>
One would assume when Apple released the mini they knew what was on the roadmap for the future - e.g. a larger phone and thinner/lighter full sized iPad. So that begs the question - was the mini really just a reaction to the market? Was it Apple panicking a bit with the media buzz all over these smaller cheaper "iPad killers"? Or did Apple release the mini knowing it would be a short lived product eventually replaced by a thinner/lighter full sized iPad?
Jobs knew about the Mini. Sometimes you introduce a saleable product to help lure people into your ecosystem, that then leads them to buy better products later. Apple knew the iPod line would die, yet they introduced the Touch anyway. Helped a lot of people experience the iPhone style without committing to a contract or buying a phone they may not have been able to afford.
Apparently there's not space for it with the bean counters. Just like there's no space for 32GB anymore. Why have 32GB when Phil "upsell" Schiller can offer you 64GB for the same price (even though you don't need it) and increase ASPs at the same time. What a genius! I'm sure he got extra stock options for thinking that scheme up. While elsewhere in the company employees are wondering why iOS upgrades have slowed.
I would argue that 64GB is needed. My mother went with a 16GB 5C and regrets that often, as she runs out of space frequently.
They probably won't kill the Mini, it'll just become like the iPod Touch, something they don't update as often.
I would argue that 64GB is needed. My mother went with a 16GB 5C and regrets that often, as she runs out of space frequently.
They probably won't kill the Mini, it'll just become like the iPod Touch, something they don't update as often.
Fact is 32GB at $199/$499 would sell very well. Probably more so than 64GB at $299/$599. But since Apple doesn't offer the former people chose the latter which in turn increases ASPs and is obviously why Apple got rid of the 32GB tier. Again, another way of upselling you. I'd love to know what the true impact to Apple's bottom line would be if their lineup was 32/64/128. Honestly no one should be selling 16GB devices anymore.
Jobs knew about the Mini. Sometimes you introduce a saleable product to help lure people into your ecosystem, that then leads them to buy better products later. Apple knew the iPod line would die, yet they introduced the Touch anyway. Helped a lot of people experience the iPhone style without committing to a contract or buying a phone they may not have been able to afford.
I would argue that 64GB is needed. My mother went with a 16GB 5C and regrets that often, as she runs out of space frequently.
They probably won't kill the Mini, it'll just become like the iPod Touch, something they don't update as often.
That's exactly what I see happening. The iPad mini just takes the place of the iPod Touch and the iPad Air / Pro move upmarket to become more "productivity" oriented devices. I'm surprised Apple just didn't completely kill off the iPod line by now.
Fact is 32GB at $199/$499 would sell very well. Probably more so than 64GB at $299/$599. But since Apple doesn't offer the former people chose the latter which in turn increases ASPs and is obviously why Apple got rid of the 32GB tier. Again, another way of upselling you. I'd love to know what the true impact to Apple's bottom line would be if their lineup was 32/64/128. Honestly no one should be selling 16GB devices anymore.
The thing is, there is a market that only needs 16GB devices, be it business's or schools. And procurement rules can be odd, governments/purchasing departments may approve one specific configuration for purchase, and no others. That's why the iPad 2 stuck around rather than the iPad 3 when they introed the fourth gen iPad, I know in AZ the state procurement deals only allowed the iPad 2 to be purchased, no other models.
The thing is, there is a market that only needs 16GB devices, be it business's or schools. And procurement rules can be odd, governments/purchasing departments may approve one specific configuration for purchase, and no others. That's why the iPad 2 stuck around rather than the iPad 3 when they introed the fourth gen iPad, I know in AZ the state procurement deals only allowed the iPad 2 to be purchased, no other models.
Those organizations don't purchase enough to sway a decision like that.
I'm waiting for Apple to produce a 30" screen that has no physical form. You sit in a chair, tap the iPhone in your pocket and lo! a screen appears in front of you. You can resize it to whatever you want.
No point - they already have this in the future...
Didn't Tim Cook recently point out how proud he was that Ipad mini had a 100% customer satisfaction rating ?
Burn it all... burn it all down. Start over.
The iPad Mini is highly used in elementary schools - If anything Apple may move it to be for school sales only. So any discontinuance is highly unlikely.
Maybe there will only be limited models of mini, like black or white 16 GB. Possibly they are not selling enough or not enough margin?
The regular iPad now looks pretty small.
Eh, the mini will be around, 99% sure. As long as they have there 40% margins on product.
Most people use them for reading?
problem is margins on the iPadMini is not close to 40%.
Company wide gross margins are about 40%
The iPhone is at about 55%.
Jobs/Cook both said the iPad was at a lower gross margin than iPhone.
And than the Mini was an EVEN LOWER MARGIN than iPad.
Mini margins are probably 25% to 30%.
Now factor in the $100 less price tag and Apple hardly makes any profit on a Mini. The truth is Apple makes way more profits margins on selling cases and power cables. Selling millions of units of Mini's each year at horrible margins is not sustainable.
By only selling the mini in quantity to schools, bundled with extra software and services (Like Apple did in the LA school district) in how Apple can increase margins easily.
Bottom line is Apple makes COMPUTING DEVICES. Just so happens the most popular form factor now is the phone. Do you seriously think we will enter a time when computing devices are not need? Do you think we will ever reach a point when ALL COMPUTING DEVICES are commoditized? Never. From Main frame, to desktoop, laptop, phone, tablet, wearable, ect. There is ALWAYS a next form factor that will command large margins. My money is on Apple to be able to lead in the next form factor, the Apple Watch!
Comments
Would not be surprised if this is true.
Unfortunately people are cheap. Too many people opt for the cheap iPadMini which leads to lower revenue, lower gross margins, and lower profits. The only way I see iPadMini surviving is if the difference is price to the Air is $50. At $100 difference the impact of margins is too high.
Apple literally needs to sell 3 iPad's to make the same profit as a single iPhone.
Maybe Apple shouldn't lean on the phones for so much of their profit. Need the diversification of products.
Rubbish rumour, iPad mini, iPad air, ipad pro. That's the line up. No reason to drop the mini, it's perfectly sized for tons of applications that benefit it and don't fit that well neither 6 plus nor the iPad air. Some folk might like a normally sized phone and a mini to go along. Others can make do with a large phone and get an air instead as a larger device. Yet more others will see that a regular size iPhone + an iPad mini for portability + and iPad pro leaves the iPad air out of the picture. There's certainly very much a space for the mini esp. for those who dislike large phones and still want something small to fit their pocket.
Couldn't agree more. The iPad Mini is the first -- and only -- Apple product I've bought that I simply do not use. It's beautiful, but it's also redundant in my lineup.
Hopefully this is BS. But seeing as how the mini got a pathetic update this year I wouldn't be surprised if it's true. Bean counters (and yes I include Schiller in that bunch) running the show now so if the Air, "Pro" and 6 Plus bring in more $$ then it's bye bye mini. Which would be a shame. I know several mini owners who love the device and think it's the perfect size.
"It turns out the same thing can happen in technology companies that get monopolies, like IBM or Xerox. If you were a product person at IBM or Xerox, so you make a better copier or computer. So what? When you have monopoly market share, the company's not any more successful.
So the people that can make the company more successful are sales and marketing people, and they end up running the companies. And the product people get driven out of the decision making forums, and the companies forget what it means to make great products. The product sensibility and the product genius that brought them to that monopolistic position gets rotted out by people running these companies that have no conception of a good product versus a bad product.
They have no conception of the craftsmanship that's required to take a good idea and turn it into a good product. And they really have no feeling in their hearts, usually, about wanting to really help the customers."
- Steve Jobs
Read more: http://www.businessinsider.com/steve-jobs-on-why-innovation-dies-at-tech-monopolies-2014-11#ixzz3I3rpcmrJ
One would assume when Apple released the mini they knew what was on the roadmap for the future - e.g. a larger phone and thinner/lighter full sized iPad. So that begs the question - was the mini really just a reaction to the market? Was it Apple panicking a bit with the media buzz all over these smaller cheaper "iPad killers"? Or did Apple release the mini knowing it would be a short lived product eventually replaced by a thinner/lighter full sized iPad?
Hmm...made me think of this quote from Jony Ive from last week...
http://blogs.wsj.com/digits/2014/10/31/apples-jony-ive-says-smartwatch-was-design-challenge/
Exactly. Otherwise we might as well just call Apple the iPhone company.
Apparently there's not space for it with the bean counters. Just like there's no space for 32GB anymore. Why have 32GB when Phil "upsell" Schiller can offer you 64GB for the same price (even though you don't need it) and increase ASPs at the same time. What a genius! I'm sure he got extra stock options for thinking that scheme up. While elsewhere in the company employees are wondering why iOS upgrades have slowed.
Business Insider = propaganda.
Jobs knew about the Mini. Sometimes you introduce a saleable product to help lure people into your ecosystem, that then leads them to buy better products later. Apple knew the iPod line would die, yet they introduced the Touch anyway. Helped a lot of people experience the iPhone style without committing to a contract or buying a phone they may not have been able to afford.
I would argue that 64GB is needed. My mother went with a 16GB 5C and regrets that often, as she runs out of space frequently.
They probably won't kill the Mini, it'll just become like the iPod Touch, something they don't update as often.
Fact is 32GB at $199/$499 would sell very well. Probably more so than 64GB at $299/$599. But since Apple doesn't offer the former people chose the latter which in turn increases ASPs and is obviously why Apple got rid of the 32GB tier. Again, another way of upselling you. I'd love to know what the true impact to Apple's bottom line would be if their lineup was 32/64/128. Honestly no one should be selling 16GB devices anymore.
Business Insider = propaganda.
Jobs knew about the Mini. Sometimes you introduce a saleable product to help lure people into your ecosystem, that then leads them to buy better products later. Apple knew the iPod line would die, yet they introduced the Touch anyway. Helped a lot of people experience the iPhone style without committing to a contract or buying a phone they may not have been able to afford.
I would argue that 64GB is needed. My mother went with a 16GB 5C and regrets that often, as she runs out of space frequently.
They probably won't kill the Mini, it'll just become like the iPod Touch, something they don't update as often.
That's exactly what I see happening. The iPad mini just takes the place of the iPod Touch and the iPad Air / Pro move upmarket to become more "productivity" oriented devices. I'm surprised Apple just didn't completely kill off the iPod line by now.
Well, Apple abandoned the 4" iPhone screen this year, so I can believe it.
They did no so such thing. The 5c and the 5s are still selling and are great devices. Don't be surprised if they stick around another year or two.
The thing is, there is a market that only needs 16GB devices, be it business's or schools. And procurement rules can be odd, governments/purchasing departments may approve one specific configuration for purchase, and no others. That's why the iPad 2 stuck around rather than the iPad 3 when they introed the fourth gen iPad, I know in AZ the state procurement deals only allowed the iPad 2 to be purchased, no other models.
Those organizations don't purchase enough to sway a decision like that.
I'm waiting for Apple to produce a 30" screen that has no physical form. You sit in a chair, tap the iPhone in your pocket and lo! a screen appears in front of you. You can resize it to whatever you want.
No point - they already have this in the future...
I doubt Apple would kill off the iPad mini at this point in time. They still are pretty popular, especially with children.
Good point, and ties in with education purposes for younger users...
maybe just a change of name,
from iPad Mini to iPad Kidi?
The iPad Mini is highly used in elementary schools - If anything Apple may move it to be for school sales only. So any discontinuance is highly unlikely.
By only selling the mini in quantity to schools, bundled with extra software and services (Like Apple did in the LA school district) in how Apple can increase margins easily.
Fixed that for you!