If Apple Inc, launched the smaller version of iPad or âiPad Miniâ, this will not only take away sales from its competitors but will also cannibalize the original iPad sales.
However this kind cannibalization of existing iPad sales will be negligible and this will be offset by higher sales and profits to Apple by increasing its product portfolio. Brian White, an analyst working with Topeka Capital Markets, said this. White also penned the term iPad Mini and beating the drum about this gadget since.
White explained in a research on Thursday that, the original iPad cannibalization would be minor and in the range of 10-20 percent but in the same time the iPad Mini will generate tremendous sales in the developing nations. White reinstates that the ‘iPad Mini,’ will be an instant hit in developing countries like China, as well as in the developed world. Consumers who are price sensitive, will go for the mini version for convenience and children will like it as its easier to carry round than a 10 inch one. The iPad Mini is expected to cost around $250.
White also assumed that people will even own two iPad, creating a new market segment. White says, he wonât be surprised if consumers end up buying two iPads- the regular iPad and the an ‘iPad Miniâ, using both the devices for different occasions and purposes as iCloud helps automatically duplicate and share contents and apps between the two iPads and other Apple products.
Itâs true that profit margins will be lower for the ‘iPad Mini,’ as we should say here that the mini version will have fewer capabilities than its bigger cousin, so this is manageable.
Even at $250 it is still more costly than its competitors like Googleâs Nexus 7 and Kindle Fire of Amazon, but consumers will pay a little more to get a superior product that will deliver them a satisfactory performance than its competitors and a sturdy ecosystem as well.
In the end the iPad Mini will be a long term positive addition of the Appleâs iPad series and to keep competitors away from controlling the low cost segment of the tablet market, White concluded.