Apple Shoots Itself in Foot with Mini, Reduces 9.7" iPad Orders

The sometimes spotty DigiTimes reports that Apple is reducing its orders for the 9.7-inch iPad due to a cannibalization of the iPad Mini. The fruity company now expects to ship 33 million iPads in 2013 and a meatier 55 million iPad Mini 7.9-inch tablets in the same timeframe. Whoops.

According to the report, Apple originally predicted that the larger iPad would reach around 60 million units sold during 2013 while the iPad Mini would only see 40 million units sold. But given the smaller tablet's popularity (thanks to a smaller price tag, no doubt), Apple is now adjusting its 2013 orders. As noted, the iPad will see a decrease while orders for the smaller tablet will increase.

Unfortunately, the adjustments will likely affect the supply chains, sources claim. iPad panel suppliers including LG Display and backlighting unit (BLU) providers including Radiant Opto-Electronics will take a hit in both shipments and revenue. However LG is expected to make up for the loss by bumping up its overall tablet panel shipments in 2013.

Meanwhile, iPad Mini suppliers like AU Optronics and Coretronic – another BLU provider -- will see the opposite in 2013. Sources said that AU Optronics is already experiencing an increase in tablet shipments from less than one million to 1.7 million per month by simply entering Apple's supply chain. The added revenue for Coretronic will also allow the BLU supplier to increase its overall shipments in the tablet sector.

Apple introduced the iPad Mini back in October, a 7.9-inch tablet that's 23-percent thinner and 53-percent lighter than the third-generation iPad. Powered by Apple's new ARM-based A6X chip, it features the same number of pixels as the original iPad and iPad 2, 5MP iSight cameras, dual-band Wireless N connectivity, and more. Pricing ranges from $329 to $659 USD.

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  • christarp
    I don't see how they are shooting themselves in the foot by opening up to a new market and getting more orders with two combined than just the original. Better to cannibalize your own customers with the changing market than letting another company take your customers.
    20
  • bak0n
    christarpI don't see how they are shooting themselves in the foot by opening up to a new market and getting more orders with two combined than just the original. Better to cannibalize your own customers with the changing market than letting another company take your customers.

    Because the same people who bought the mini for a lower price would have spent more purchasing the higher priced product, most likely not cross shopped.
    17
  • gladosiri
    Apple Mini has A5 processor with SGX543MP2 graphics, not A6X like iPad 4.
    Essentially smaller iPad 2, not iPad 3/4.

    And I wouldn't say that Apple is shooting themselves in the foot.
    They'll likely get more people from whom looking for 7 inch tablet from android instead.
    It's smarter choice.
    16
  • Other Comments
  • christarp
    I don't see how they are shooting themselves in the foot by opening up to a new market and getting more orders with two combined than just the original. Better to cannibalize your own customers with the changing market than letting another company take your customers.
    20
  • bak0n
    christarpI don't see how they are shooting themselves in the foot by opening up to a new market and getting more orders with two combined than just the original. Better to cannibalize your own customers with the changing market than letting another company take your customers.

    Because the same people who bought the mini for a lower price would have spent more purchasing the higher priced product, most likely not cross shopped.
    17
  • victorintelr
    So Apple is not actually shooting themselves but rather the market has shifted.....but is less profitable.
    We'll se if they'll have to drop the 10" ipad price to keep up (doubt so).
    6