Sales of the iPad mini could cannibalize up to One million current iPad sales during the quarter, but the small tablet is also a huge opportunity for Apple to grow its userbase, as per latest analyst report.
Piper Jaffray’s Gene Munster pointed out in a note to investors that he hopes the iPad mini to release on November 2. The company believes Apple could sell 5 million iPad minis in the Dec quarter, but that will be at the expense of One million 9.7-inch iPads.
“For every 5 million smaller iPads, you lose A million standard iPads,” Munster said. Still, PJC is increasing its 2013 sales estimates for the bigger iPad from 86.5 million to 95 million; the company said Apple could sell 25 million iPad minis next season. “Thus smaller iPads will make up about 25 % of Apple’s total tablet product sales,” Munster concluded. The smaller iPad will likely draw in fresh buyers who mightn’t have been able to purchase the more costly new iPad or iPad 2.
Munster mentioned that the iPad mini will be charging $249-299. “We feel that if Apple were to forego the Retina display and minimize storage to 8GB at the base level, the firm should be able to deliver a unit in the $249-299 range,” he wrote.