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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.
    Reply
  • 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.
    Reply
  • 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).
    Reply
  • Supermuncher85
    Not necessarily. I bought the product because I was looking for a smaller tablet. Lower price or not, I would have not bought the larger tablet simple because it was cheaper. In fact if apple had not sold their mini, I would have most likely bought the nexus7 because the normal Ipad@10" is too big for my needs.

    Your example is like what the music industry uses all the time when they state that everyone who ever downloaded an illegal Mp3 would have instead bought the CD/LP for the full price which is just not true. Or see this TED talk on it http://www.ted.com/talks/rob_reid_the_8_billion_ipod.html

    Again I bought the mini because I wanted a sub 10" tablet, not because of the price.
    Reply
  • 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.
    Reply
  • fleeb
    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.
    May be they were shooting themselves in the foot by claiming that tablets that are less than 10 inches in size suck, because after all, they all did the thorough research, engineering, and testing to make the claim and at the same time they made their company image of supposedly selling these premium gadgets. The mere act of opening to this market that is against this image they want to portray is already shooting themselves in the foot.
    Reply
  • stickmansam
    They also had lower overall unit sales 100 million projected vs 88 million actual

    Is this a sign of falling market share or falling overall tablet sales or just plain overestimation?
    Reply
  • eklipz330
    i like the ipad mini's size and shape actually. it's a pretty looking device. i can't find a reason for a tablet, and even if i did, i'd probably go the nexus route. can't argue with their design choice though.
    Reply
  • bustapr
    the profit margin of the ipad mini isnt too much less than the big ipad also. its cheaper to make, hence its cheaper cost. if anything this was a smart decision to get into the smaller tablet market since their undoubtably making more money.

    fleebMay be they were shooting themselves in the foot by claiming that tablets that are less than 10 inches in size suck, because after all, they all did the thorough research, engineering, and testing to make the claim and at the same time they made their company image of supposedly selling these premium gadgets. The mere act of opening to this market that is against this image they want to portray is already shooting themselves in the foot.
    it was certainly stupid of them to have mocked this market in the first place, but it is in no way shooting themselves in the foot to open up to the market they initially mocked. theres an obvious growing market thats already much bigger than the interest in the bigger tablets. any company with half a brain could see the profits and it would be even more retarded to not jump into this pool of money. im not a fan at all of Apple, but I find it hard to think if this decision as being a bad one,regardless of the image they set up against the market.
    Reply
  • fat_panda
    Win or lose, I would appreciate it if Apple consider giving iOS a make over, or make some general improvements. It may not be a problem for tablets, but my iPhone sucks compared to Android phones. Only thing keeping me on iPhone 4S is my 2 year contract with Verizon.
    Reply