Cook on the risks of iPad mini: Apple has "learned not to worry about canibalization of our own product"
And that’s definitely a possibility. But one thing that Apple has learned is to actually not be afraid to do this.
"We have learned over the years not to worry about cannibalization of our own product," chief executive Tim Cook said. "It's much better for us to do that than for somebody else to do it.
A brilliant example of this is the iPhone, that would later on cannibalize much of iPod sales, but the company still went for it and now it is the main profit generator for Apple.
"And the far, far bigger opportunity here are the 80-90 million PCs that are being sold per quarter. There's still over 300 million PCs being bought per year. And I think a great number of those people would be much better off buying an iPad or a Mac. And so I think that's a much bigger opportunity for Apple. And so instead of being focused on cannibalizing ourselves, I look at it much more that it's an enormous incremental opportunity for us," Cook further explained.
Looking back at the history of Apple, it is really all about focusing on the right products that would eat older form factors. The MacBook ate Mac sales to some extent, and the iPad might have eaten into MacBook sales, but still those products came out to be a success. Whether it will work this time with the 7.9-inch iPad mini, we’re yet to see.
1. wendygarett (unregistered)
Of course it will cannibalised own product, but at least you learn the word 'choice' lol
However, some fanboy don't mind that because they will get new ipod touch, iphone 5, ipad mini and new ipad (a6x chip version) In the same time... Wow 4 devices in a row?? WTF that cost almost 5 figures tho $$$$$
8. PapaSmurf (Posts: 6615; Member since: 14 May 2012)
If one were to get all four products, that's just sad.
2. bobfreking55 (Posts: 866; Member since: 15 Jul 2011)
with the release of the iPad 4, I have a slight feeling they will little by little shift their focus to the Mini. They will slowly kill off the iPad - like what happened with the iPods. I mean, surely, the iPad customers would be pissed right now because of the 4.
With the death of the iPad (Classic), the iPad Mini 2 and so forth will usher with Retina displays, faster processors and better cameras.
The iPhone might keep its size for years even when everything is going phablet.
Guess what? I am an analyst and I analyze that there would be an iPad Nano at the size of 5"+ soon.
high probability I say, especially under Apple's management - and they'll call it NEW once again.
17. meowcenary (Posts: 187; Member since: 13 Apr 2012)
You are analyst? So what firm do you work for? As a analyst, why would you post your prediction on a forum in short?
3. Savage (Posts: 431; Member since: 28 Jul 2012)
Something is surely wrong with Cook. He isn't explaining WHY people should buy iPads and Macs instead of PC. They aren't exactly more productive compared to PC and not everyone's looking for entertainment.
I wouldn't really consider a Macbook unless-
1) They priced it right. It has the specs of a mid-range lappy. I mean, C'Mon!
2) It has no disk drives! WTF? Is it too hard to include? DVD's and Blu-rays aren't exactly irrelevant now like Flash. I prefer having physical DVD's of movies rather than temporarily leasing them via iTunes.
10. PapaSmurf (Posts: 6615; Member since: 14 May 2012)
I'm getting a '12 MBP soon but then price is definitely holding me back. If there's one thing that I like about Apple, it would be their MacBook Pro line.
11. Savage (Posts: 431; Member since: 28 Jul 2012)
Sony Vaio would be a better choice. I own an FW series. One of the first laptops ever with a blu-ray drive. Its discontinued by Sony now.
20. hutty24 (Posts: 84; Member since: 18 Oct 2011)
you sound like a dinosaur lol Most are like this now get your self a flash drive or Google drive 25gb and use it on any os
4. No_Nonsense (Posts: 826; Member since: 17 Aug 2012)
Someone please tell Cook's line to Nokia.
5. pikapowerize (banned) (Posts: 1869; Member since: 03 May 2012)
you cant actually compare the old apple to this new era of apple!!
6. AppleConspiracy (Posts: 627; Member since: 18 Oct 2011)
Comparing iPhone's shadowing of iPods in 2007. is not a wise thing in this case.
iPad mini will sell well and they don't have to worry if larger iPad see decline, but in the long run it may backfire to Apple since they are fragmenting their own market, something they haven't done with their main profit sources since 2007. And they haven't done it for a reason! Having one unique high-end product in particular category is in fact THE strategy that elevated Apple sky high.
This move from Apple was actually a sign of losing their strenght before the competition. They needed to put themselves down into the "battle arena" of tablets, not just looking at competition from high above.
12. Aeires (unregistered)
You were a staunch defender of the Mini not being real, what are your thoughts on the pricing and how it will affect sales of their other products now that is has been revealed?
14. AppleConspiracy (Posts: 627; Member since: 18 Oct 2011)
I strongly believed Apple would not unveil the iPad Mini until the very end before iPad Mini was actually introduced.
After I realized the rumors are so consistent and strong I tried to understand the motivation of Apple.
Frankly, I'm a bit surprised, but this fact only proves me that Apple is not what it was under the iron fist of Steve Jobs. It's falling apart. Of course, that doesn't mean they will bankrupt or be nearly as unsuccesfull as competition is, but they will most surely lose the first place in Insutry, the role of industry leader, and become industry follower.
I can only say that iPad Mini will sell like hot cakes, but this doesn't matter on the long run. The important thing is that now Apple is started to treat competition seriously and entered the real fight - with product themselves. This only speak about losing their confidence and lack of ideas to introduce a new paradigm of products, the move that now seems only Steve Jobs had the courage to undertake.
The mechanism od Apple that gave them the role of leaders is not compatible with this following of the industry standards. They will pay high price for this following, but it will surely be seen, unless they introduce something really new, only in about two or three years.
The hate towards Apple is now culminating. It has become a cultural phenomenon that has now opened its way toward masses, and that could be really bad for Apple. Devices themselves don't matter much, only communicating with society by seduction, that is now gone.
15. Aeires (unregistered)
I too don't think they'll go out of business, but they do run the risk of being just another company. In a way, that might be the worst thing that could happen to Apple.
Apple hatred is an interesting phenomenon, the lawsuits aren't winning them anything in the long run if they lose public opinion. Some people hated Steve, but they at least respected him. Tim doesn't have the clout Steve did, so he's in a constant battle with public opinion. I said from the beginning, he had every opportunity to be the hero when he took over Apple. He has done some good things, like bringing back company matching on donations. Unfortunately, things like this don't make the news, lawsuits do. Steve will be remembered as a visionary person, Tim just a bean counter who couldn't fill Steve's shoes.
Apple is an oddity on many levels. I've been watching their stock daily. Not that I own any, just it caught my attention when they were on the verge of becoming the first trillion dollar corporation. I expected their shares to break a new record after the release of the Mini. It did the exact opposite, they dropped almost $10 a share in roughly two minutes time after the prices were announced. I honestly thought this was going to be the product that put them over the mark but it didn't capture the attention the way they probably thought it would. Now Tim is making public statements about it, which can only make some people wonder about the credibility of their decisions.
I heard a comment from an analyst earlier this year that nailed it. Paraphrasing, he said "Apple is best when they are out front, leading the pack. Since Android, all they do is run with the pack now." Seems like they are resting on their laurels, not investing enough capital in R&D, and definitely not moving out of their comfort zones. When Apple was doing brave things, they rocked. Now they just release minor iterations of the previous products. People are growing tired of their arrogance, comments about greed are the new norm when it comes to Apple. It's an interesting company to watch, most definitely.