'iPad mini' may give Apple larger market opportunity than current iPad
Brian White of Topeka Capital Markets doesn't think a so-called "iPad mini" would cannibalize a significant number of sales of the existing iPad. At worst, he sees the smaller, cheaper iPad affecting 20 percent of sales of the current model, a cannibalization number he called "relatively minor."
But he said the market opportunity for a smaller iPad could eventually be larger than the current model. Given the growth trends in developing countries like China, he sees an "iPad mini" priced between $250 and $300 having a big impact on the market in the coming years.
In addition, he also feels a smaller iPad would find success in the education market, as a more portable device could prove more suitable for younger children, and schools would appreciate the lower price point. He also thinks that some current iPad owners in developed countries might buy a second, smaller model for convenience.
"We would not be surprised if certain customers end up owning both a regular-sized iPad and an 'iPad Mini,' swapping between the two devices for different occasions," White wrote in a note to investors on Thursday. "With the introduction of iCloud, the content on the two iPads can be automatically duplicated and thus easier to swap between Apple devices."
Even if a smaller iPad were priced as high as $300, White doesn't think Apple would have a problem luring customers away from less expensive $199 7-inch tablets that are already on the market. He assumes that Apple's 7.85-inch iPad would be of considerably higher quality than the competition.
White expects that Apple will unveil its smaller iPad model this fall, as soon as September, alongside the company's next-generation iPhone. This week, both Bloomberg and The Wall Street Journal issued reports (1, 2) claiming that Apple plans to launch a smaller iPad with a screen size between 7 and 8 inches before the end of the year.
149 Comments
'Nuff said.
"'iPad mini' may give Apple larger market opportunity than current iPad" Ya think?!
Apple started, created, and dominate the tablet category..might as well completely own the category. Leave nothing uncovered.
[quote name="JerrySwitched26" url="/t/151102/ipad-mini-may-give-apple-larger-market-opportunity-than-current-ipad#post_2140670"] 'Nuff said. [/quote] Yep, especially this one who rarely shows any balls but just parrots what others put out there without any real insight into whether the notion is logical -- based on Apple history, statements and the market. Apple has publicly said no to a smaller iPad, they have pushed the 10 inch model into schools, etc. Apple has a history of not doing things based on 'everyone else is doing it' or 'folks on the blogs/sites want it'. No 7 inch tablet to date has put a dent in the iPad sales (drops in marketshare percent are cause the total went up). These are the things an analyst should be noting him/herself. Not ignoring them and then looking like an idiot when there is no new iPad in the Fall. That real tv turns out to be a bigger computer display etc But White being White, he'll find out in a couple of months hw wrong he was and then spread talk that Apple was going to do it but there was an issue with this or that and was forced to change plans, blah blah
'Nuff said.
How does one get such a job? It's as good a job as baseball - hit less than 30% of the time and still get paid 6-7 figures.