Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Squawk / 24 October 2012 at 18:21 GMT
Would iPad mini end up cannibalizing the regular iPad?

I'm not sure what Apple's executives were thinking about when they decided to launch the new iPad mini! The new device presents no innovation at all! In fact, it most likely going to have a negative impact on the long-term company's performance.

Firstly, the iPad mini would cannibalize the regular iPad's sales based on price! The price gap between the two products is small enough to make them comparable with each other, and not with the competing products! In addition, the iPad mini is conveniently smaller and can satisfy the needs of the current iPad's customer. Read this recent news of the resale surge of iPad. iPad resales surge over 700%

Secondly, if the iPad mini was intended to compete head to head with other products, such as Amazon's, then Apple is making a huge mistake. Such competing strategy will have Apple's expenditures increase, gradually and unnecessarily, to win ...... read more at
Laurence Wheway Laurence Wheway
I heard somewhere that 25% of the tablet market was for these mid-sized devices. But Apple made it's name (and money) by defining new markets... And with this they're just jumping on the band wagon, following others. To me it seems daft, and the sort if thing that Steve wouldn't have allowed, like antennagate, new maps... The result of spreadsheets rather than genius.
Matt Bolduc Matt Bolduc
Well it might cannibilize some of the normal iPad earnings but if in total you wind up making more profits than it just makes sense. Plus there is actual demand for smaller tablets and Apple will definitely take a huge bite out of that market.
Kay Xander Mellish Kay Xander Mellish
Speaking as a woman, I would be interested in a tablet I can carry around in my purse. I own a full-size iPad, but it is frankly too heavy to carry around all the time. I also own an iPhone, which isn't always satisfactory for surfing or online shopping. I might be a potential customer for the iPad mini.
Malsuwayed Malsuwayed
Laurence, it's exactly how you said it! They're no longer the leader of the industry!

Matt, I agree with you; it will increase the company's profits, but not similar to its previous earnings! what I'm expecting to happen is that iPad mini's profits will offset the regular iPad's profits, gradually. Also, don't discount the competition's retaliation effect.

Kay, you're providing a good example of customer preference that is supporting my claim of cannibalization! I bet that you're not considering buying any new regular iPad in the future, and you would rather by the mini version.

Thank you all for your comments, they were quite insightful!


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