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iPad Mini Sales Overtaking iPad Sales Faster Than Apple Expected

Sales of the iPad mini are cannibalizing sales of the iPad, according to a report from NPD DisplaySearch. January shipments of tablet panels between 7 and 9 inches eclipsed shipments of larger panels, indicating an unexpected shift in consumer preference for a smaller form factor tablet.

Shipments of 9.7-inch panels (the iPad) fell from 7.4 million in December to 1.3 million in January, while shipments of 7.9-inch panels (the iPad mini) rose to over 5 million. Smaller tablet panels, including those used for the iPad mini, the Kindle Fire, and the Google Nexus, saw total shipments of 14 million.

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In December, NPD estimated that Apple would sell 40 million iPads minis and 60 million iPads during 2013, but the January sales numbers suggest that the mini will outsell the iPad.
As we noted in December, Apple had planned to sell 40M iPad minis (7.9”) and 60M iPads (9.7”) in 2013. However, the reality seems to be the reverse, as the iPad mini has been more popular than the iPad. We now understand that Apple may be planning to sell 55M iPad minis (7.9”) and 33M iPads (9.7”) in 2013.
For much of December and January, the iPad mini was in short supply due to low yield rates of the mini's display panels, with shipping times up to a week. Apple finally reached supply-demand balance earlier this month, which will facilitate even greater sales of the smaller tablet.

During Apple's January earnings call, Apple executives addressed cannibalization fears, indicating that the company is not worried about iPad mini sales overtaking iPad sales.
Cannibilization is a huge opportunity for us. We never fear it because if we do, someone else will do it. iPhone has cannibalized iPod, that doesn't worry us. iPad has on the Mac, and that doesn't concern us.
Currently, the full-sized iPad is an attractive choice because of its Retina display, but Apple is rumored to be releasing a second generation iPad mini with Retina later this year.

Top Rated Comments

(View all)

22 months ago
"iPad mini won't sell" they said, "iPad Mini will be a flop" they said...
Rating: 40 Votes
22 months ago
People will buy whatever is cheaper. If they have to settle for a smaller screen, they will.
Rating: 20 Votes
22 months ago
When it was first announced, I thought Apple was crazy to price it at $329. Clearly I was wrong.
Rating: 19 Votes
22 months ago
make it lighter, then full size iPad and Mini will split the share.

For longer period of use I go with iPad 4 and for games and simpler stuff i use the iPad mini.
Rating: 14 Votes
22 months ago
You know why? Because people like to say "cannibalization."
"Excuse me, do you have cannibalization?" "We need more cannibalization." "Where is the cannibalization? No cannibalization?"
Rating: 7 Votes
22 months ago
Better for Apple to cannibalize itself vs another company to take their business away. Which was bound to happen if Apple didn't put out something less expensive and smaller to compete.
Rating: 4 Votes
22 months ago
Doesn't surprise me at all. I've had an iPad since it came out, and always said that a smaller version would be much more suitable for some tasks. Ever since the iPad mini came out, I no longer use my big iPad for anything other than watching video, even though the mini feels underpowered and I wish it had a retina display
Rating: 3 Votes
22 months ago
I love the mini. I much prefer the size to the 9.7" iPads.

The one thing to remember is they may be eating into sales of the 9.7", but the $200 Nexus 7 was probably eating into them too. So, coming out with something a little cheaper is better than completely losing out to other tablets.
Rating: 3 Votes
22 months ago

People will buy whatever is cheaper. If they have to settle for a smaller screen, they will.


I think numerous people will disagree with you, namely those who bought a 27" iMac instead of a 21", those who bought a iPod Classic over the Nano, those who bought a Mac over a PC, and so on.

Costing less money is nice, but everything has value. Evidently having a screen be 44% bigger and has 300% more pixels isn't worth a price that's 50% higher, for most tablet buyers (and users, based on comments in this thread.)

I wonder if Apple's stock will drop on this news... I imagine they make more per iPad sold vs. iPad Mini sold.

Edit:

Each iPad sold nets Apple $190 while each iPad Mini sold nets Apple only $140.

Old Projection:
40 minis * $140 = $5600M
60 fulls * $190 = $11400M
Total = $17B

New Projection:
55M minis * $140 = $7700M
33M fulls * $190 = $6270M
Total = $14B

Ouch.
Rating: 3 Votes
22 months ago
Apple is DOOMED! Apple sold 60 million iPads last year. Now analyst projects sales of only 90 million the year after that. Dooooomed!!!
Rating: 3 Votes

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