Is the iPad Mini proving to be a bad idea for Apple?

by Anurag R on December 2, 2012

Apple iPad Mini vs iPadThe iPad Mini has been a rather polarizing device, even by Apple’s standards.

There has been the whole hullabaloo about whether it really does offer any value for money at its staggering $329 starting price for its base model, and that’s better dealt with in our ‘Mini’ review for the new Apple tablet. What we’re more concerned about though are the implications of the iPad Mini’s addition to Apple’s tablet lineup.

 
A recently released report from ABI Research has revealed that the iPad Mini has cannibalized the sales of Apple’s usual 9.7 inch iPad tablets.
 
The report indicates that while Apple still has a 55% market share in tablets in the previous quarter, a figure that is also the lowest ever for iPads. On the other hand, Android tablets have seen their share increase to 44%. The whopping 14% dip for iPads is explained by the assertion that it “has caused demand for standard iPad models to shift down-market”.
 
While it can be argued that Apple wouldn’t mind its sales getting cannibalized by its own tablets, as long as it has the overwhelming majority in the tablet market in terms of market share, it doesn’t set a healthy precedent in the long term.
 
Should a future iPad Mini version be plagued by any unexpected problems (such as the iPhone 4’s Antennagate, or the iOS 6 Maps fiasco), Apple’s normal iPads, having been undercut by the Mini for some time, will take a while to recover any possible demand deficits for the iPad Mini.

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{ 1 comment… read it below or add one }

Mel December 2, 2012 at 11:02 pm

You guys are hilarious. Apple’s damned if they don’t sell more iPad minis but also damned if they do.

ABI’s figures are from before the launch of the iPad mini so represent the artificial dip before the huge amount of pent-up demand exploded with the launch of the iPad mini.

Apple sold more iPads in the first three days of the launch of the iPad mini than Google or Amazon sold in their entire first three months of sales (sorry I mean shipments). Google only managed 500,000 Nexus 7 tablets in their first month according to the manufacturer Asus. So much for these 7″ Android tablets finally being able to earn the title of “iPad killer”.

In China, at the heart of the Android tablet flood, Apple’s iPad captured an astounding 71% marketshare last quarter and that was also before the launch of the iPad mini or iPad 4.

IBM’s recent report that the iPad accounted for a massive 88% of all mobile e-commerce transactions over Black Friday combined with web browser marketshare of 91% and 98% according to Strategy Analytics and OnSwipe respectively confirms that actual sales of Android tablets are far lower than analysts would have you believe – either that or they are sitting unused in people’s drawers. or something.

Oh and that iOS 6 maps issue? It sure hasn’t hurt sales of the iPhone 5. Kantar Worldpanel ComTech reports that in the last three months the iPhone has surged to 48.1% Marketshare in the influential US market beating Android which plunged from 63.3% to 46.7% in the same timeframe. And this is on the back of only 1 month’s worth of iPhone 5 sales.

As usual the press blows everything out of proportion. Apple is doing fine.

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