Munster mash: Apple iPad mini to take 1 million units in sales away from full-sized iPad

Munster mash: Apple iPad mini to take 1 million units in sales away from full-sized iPad
We've run across the name of Piper Jaffray analyst Gene Munster quite often with his many predictions. But that is what a Wall Street analyst does. With pencil,paper and slide rule in hand, Munster crunches numbers to reach a conclusion. The latest estimate from Munster is that the introduction of an Apple iPad mini will cannibalize sales of the full-sized model by 1 million units. Munster concludes that one out of every five iPad mini tablets sold is a sale that would have belonged to the full-sized Apple tablet. Even with the 20% cannibalization rate, the analyst sees Apple selling 25 million tablets in Q4, up from a previous forecast of 21 million units.

Mockup of the Apple iPad mini

Mockup of the Apple iPad mini

According to Munster, the iPad mini will help Apple sell 95 million iPads in 2013, up from his prior forecast of 86.5 million. The expected 7.85 inch tablet should account for 25% of the total number sold. He also expects Apple to price the iPad between $249 and $299. That would allow the device to compete with the 7 inch low-priced Android tablets like the Amazon Kindle Fire HD and the 8GB Google Nexus 7. Munster expects many buyers of the smaller tablet to pay up for higher storage or for more connectivity options. Some recent speculation has 16 different SKU's available for the Apple iPad mini.

The Apple iPad mini is rumored to sport a 7.85 inch screen and is expected to be introduced at a "by-invitation only" event on October 23rd.

source: Electronista

Related phones

iPad mini
  • Display 7.9" 1024 x 768 pixels
  • Camera 5 MP / 1.2 MP front
  • Processor Apple A5, Dual-core, 1000 MHz
  • Storage 64 GB
  • Battery 4440 mAh

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10 Comments

1. mas11

Posts: 1034; Member since: Mar 30, 2012

What about competition with the iPod touch? At $250 it would be $50 than the new iPod touch. If I had to guess I would say $300-$350, not $250-$300. Plus a price that low would cut into Apple's extremely high profit margin.

5. mas11

Posts: 1034; Member since: Mar 30, 2012

*more than

9. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Meh. Price-wise, I suspect you will see the iPod Touch XL slot in between the non-XL iPod Touch models and the iPad models. There is a gap that presently exists that can be nicely filled by the iPod Touch XL. As far as the cannibalization argument goes, there may be some, but I suspect the extent to be minimal. A million iPads traded for 10 million incremental iPod Touch XL sales would be an acceptable trade, IMO.

2. smartcelladam

Posts: 5; Member since: Jul 16, 2012

My guess is the models will range 249-349 maybe even more solely on available features. If they release a low cost ipad mini with worse connectivity than the ipod touch, or even less memory, less competition will occur. Ex. 32 gig ipod touch and 8 gig ipad mini being same price. I wouldn't put it passed Apple.

3. deuel_18

Posts: 54; Member since: Sep 25, 2012

Apple's spoilage on costumer with high cost is ending now...Apple is falling in favor of the competition...if they wont drop down their price at competitive price,they'll lose the battle

4. darac

Posts: 2156; Member since: Oct 17, 2011

I said right away that mini will take a big chunk off the big iPad. And I say Munster is actually off in his prediction, the cannibalism rate will be much higher - people will buy either the mini either the classic iPad. There's really no point in buying both

6. phil2n

Posts: 519; Member since: Apr 30, 2012

he is genius!! for an ifan like that and when we ask him about surface he would just say "Surface gonna sell 50k tablets.. :-\ TROLL

7. jimjam unregistered

take 1 million from the full sized ipad and 10 million from android tablets. Not bad.

8. sarb009

Posts: 322; Member since: Jun 15, 2011

hello $H33P sorry baa baa $H33P

10. Even4steven

Posts: 44; Member since: Aug 03, 2012

With phones getting bigger, I am still not getting the appeal of the 7" tablet. My iPad 2 basically is a stay at home device and my Galaxy S3 goes where I go. Where does the 7" tablet fit into this equation? (outside of lower price points)

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