Will Apple 'Cannibalize Itself' by Releasing an iPad Mini?

By Gary Kim July 09, 2012

If Apple does market a “less than eight-inch screen” version of its iPad, will people buy it? And if so, will it cannibalize full-size iPads, the Amazon Kindle, Google Tablet?

Apple is perhaps the most ferocious “cannibalizer” of its own products in any part of the consumer electronics business, developing products that cast dangerous shadows over its own earlier devices. Perhaps as it has done in the past, the company will do the same to sales of its 10-inch iPad, to broaden the market appeal of the iPad.

But some think any such device is aimed at confronting competition from Amazon Kindle Fire and Android Tablet at a lower price point than the original iPad.

One survey suggests a bit of truth to the statement that Apple will not cannibalize its sales prospects for the original iPad. Some 43 percent of respondents to a poll said they would definitely buy an iPad Mini should Apple decide to make one. But that leaves a substantial percentage of who might do so.

Piper Jaffray's Gene Munster recently wrote in a research note that Apple could sell four million to six million "iPad Mini's" by December of this year.

Over a quarter of its respondents – 28 percent – agreed with former CEO Steve Jobs in that a seven-inch tablet was "dead on arrival,” and would not likely buy such a device because its functionality was questionable.

Few would discount the notion that Apple will sell substantial quantities of the smaller screen device, as it sold many varieties of iPods. About the only question is whether Apple is pulling from the same potential customer base as, say, the Amazon Kindle Fire.

Again, the answer is likely to be that some percentage of potential users will prefer a Kindle because of its integrated approach to Amazon content. Others won’t care so much, especially those looking primarily for an app and Web content consumption device.

Google Tablet buyers likely aren’t as interested in the content or app offerings, whereas Apple has something of an advantage in terms of apps, while Amazon leads in digital content. If any iPad Mini is produced, many of us would guess that it will both cannibalize some original iPad sales, but also grow Apple’s overall tablet share, taking some buyers that would have bought a Kindle or a Google Tablet.

As always, Apple will risk some cannibalization of an existing product to grow overall sales of a new product.




Edited by Braden Becker

Contributing Editor

SHARE THIS ARTICLE
Related Articles

Verizon, Oh Verizon, Where Are You Going?

By: Doug Mohney    2/23/2017

Last June, Verizon closed a $4.4 billion deal to buy AOL. Executives said the acquisition would enable the company to layer AOL's advertising strength…

Read More

AMD: The Time For Ryzen Has Arrived

By: Rob Enderle    2/23/2017

The Ryzen part is a powerful alternative to Intel's offering, which will result in several new, more powerful, and affordable systems for those that g…

Read More

Voice 2017 - Best of Times, Worst of Times

By: Doug Mohney    2/21/2017

Voice is in a unique position these days, judging from the conversations I've had over the past six weeks during CES and ITEXPO. Available quality is …

Read More

Needed: Better Location Tech for RideShare Services

By: Doug Mohney    2/21/2017

Uber, Lyft, and other ride services have pushed the bounds of location tech to the point of frustration for end-users, both drivers and customers alik…

Read More

Human Carrying Drones May Arrive in 2017

By: Rob Enderle    2/21/2017

There are a couple really big problems that will likely make human carrying drones more of a tourist attraction than a real solution for some time, bu…

Read More