How Many iPad Sales Will The iPad Mini Cost Apple?
It's been a burning question since the concept of an iPad mini was first seriously broached earlier this fall. Just how many regular iPad sales will be jeopardized by the arrival of a smaller, more affordable iPad mini?
On Wednesday, Piper Jaffray analyst and resident Apple watcher Gene Munster put forward an interesting theory. According to Munster, the cannibalization rate will be approximately 20%, which means Apple will likely sacrifice one iPad sale for every five iPad mini sales. In the big picture, of course, that still means Apple will make more money.
Munster thinks the iPad minis will comprise a quarter of the expected 90 million or so iPads that will be sold in total for 2013. As a result, the average selling price of the iPad will likely drop down to $497 from $527. Munster maintains that with the iPad mini about to roll out, Apple will probably sell as many as 25 million iPads this holiday quarter alone.
Apple is widely expected to unveil the iPad mini next Tuesday, October 23rd at a media event in California. MMi will bring you all the details as they emerge from Tuesday morning's eagerly anticipated event.
Source: Wall Street Cheat Sheet