Analyst claims iPad mini is cannibalising iPad 4 sales

When Apple introduced the iPad mini, the brand also raised the curtain on its latest 9.7-inch tablet – the fourth generation iPad. The latter is an upgraded version of the third generation iPad and comes equipped with the Lightning connector that is present on all the latest generation of iOS devices. However, if an analyst's report is to be believed, the reception to the fourth generation iPad is not as warm as the reception that the iPad mini is receiving. In the process, the iPad mini is eating into the sales of the larger tablet.

A report by Cnet states that a poll was conducted by Citi this week and the major finding was the contrast in availability of the iPad 4 over the iPad min. The report states, “Among the stores called, 80 percent indicated that some version of the Mini was on the shelves. But 96 percent said that overall availability was limited based on the amount, storage options, and colors that consumers were seeking. Among the various models, the 32GB iPad Mini showed the greatest availability. In contrast, 100 percent of the stores said the fourth-generation Retina iPad was available, while only 6 percent said its availability was limited.”

The price point is higher than expected

Appears to be doing a lot better than the fourth generation iPad


In an investors note that had been recently released, Citi analyst Glen Yeung stated that, “While not explicitly asked, it is clear in our survey work that [the] iPad 4 is not selling well, cannibalized by Mini sales.”

The analyst had estimated that around 10 million iPad minis had been manufactured for this quarter as compared to the 10-15 million for all other iPads combined.

There were also reports that the iPad mini was in short supply due to production issues and Apple had asked AU Optronics, one of its display manufacturers, to cease production owing to high defect rates. AU Optronics, however, have refuted this claim and stated that iPad panel shipments are on track. It is believed that Apple is now relying on LG Displays to manufacture the panels for this tablet.

Yeung added, “With the help of our Asia team, we also conclude that iPad Mini shipments are likely to increase (quarter to quarter) as panel and assembly yield issues subside.”

The iPad mini weighs only 0.68 pounds and has an aluminium and glass design that is just 7.2mm thick. As per an official statement by Apple, the iPad mini has 35 percent more screen real estate than 7-inch tablets, and up to 67 percent more usable viewing area when browsing the web. The dual-core A5 chip on the iPad mini allows for responsive graphics and a multi-touch experience that Apple believes to be both fast and fluid while still providing all-day battery life.

The iPad mini features a front-facing FaceTime HD camera along with a 5-megapixel iSight camera on the rear, which allows for recording full HD1080p video. The iSight camera includes video image stabilisation while both cameras feature backside illumination, which Apple claims will allow users to capture great pictures in low light. The iPad mini also allows easy sharing of photos with friends and family using iCloud’s Shared Photo Streams.
The iPad mini features dual-band 802.11n Wi-Fi support for speeds up to 150Mbps, which Apple says is twice the Wi-Fi performance compared to previous iPad models. The iPad mini is available in both Wi-Fi  and cellular versions. It is world-ready with built-in support for most wireless standards, including LTE and DC-HSDPA. The iPad mini data plans will be available sans contract, so users will be only required to sign up and activate service directly from their iPad. Using the Personal Hotspot feature, you can share a fast cellular data connection via Wi-Fi, Bluetooth or USB with up to five other devices such as the MacBook Pro, the iPod touch or another iPad.

Published Date: Nov 30, 2012 13:16 PM | Updated Date: Nov 30, 2012 13:16 PM