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iPad mini won’t cannibalise iPad sales, reveals study

iPad mini won’t cannibalise iPad sales, reveals study

Apple’s decision to release a smaller, cheaper iPad is not going to eat into sales of the regular-sized iPad, new research suggests.

Financial experts Cowen and co. quizzed 1,225 consumers on their tablet buying intent, of which half of the 12 per cent who intended to purchase the iPad mini over the next 18 months will be picking up a tablet for the first time.

42 per cent said they would be picking it over a Windows-based device, while 13 per cent will get one instead of an Amazon Kindle Fire HD.

Matthew Hoffman, a number cruncher at Cowen explained: “The iPad mini creates more demand than it cannibalizes. Since 52 per cent of the mini intenders in our sample did not own a tablet of any type, we see it successfully positioned as likely to penetrate new entry-tier segments.

Cowen iPad mini buying intent survey

“[The iPad] mini will no doubt take some iPad “4″ sales, but its low price also looks like an important tool to capture new consumers’ attention.”

Last month, Piper Jaffray analyst Gene Munster said the iPad mini is likely to bog down as many as one million current-gen iPad sales in the fourth quarter. While that may still happen to some degree, Apple CEO Tim Cook had a different view on its possibility.

"We have learned over the years not to worry about cannibalization of our own product,” Cook said.

"It's much better for us to do that than for somebody else to do it.”

Cook’s belief is not without justification. Before the iPhone launched, naysayers argued it would cannibalise the sales of the iPod. Instead it went onto become the company’s most successful product, while iPod sales continued to swell with the addition the nano and touch families.

Apple recently confirmed that it sold three million units of the iPad mini and its latest, fourth-generation iPad in the launch weekend alone. How much of an impact this has had on the third and second iteration of the iPad is something only time will tell.



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