8 reasons why Apple’s iPad mini launch should have failed

“A new survey by Cowen and Co. reveals that the iPad mini isn’t cannibalizing sales of iPad but is instead doing exactly what Tim Cook had in mind… taking market share from PC’s,” Jason Schwarz writes for Seeking Alpha.

Schwarz writes, “The process in which Apple’s lineup of iPad’s becomes a PC substitute is happening before our eyes. This holiday quarter is set to be a tipping point in this evolution as it represents the first time Apple has offered a $329 entry point. The iPad mini and iPad 4 sold 3 million units on opening weekend despite the following eight reasons why this particular launch had every reason to fail.”

1. Price/Competition
2. The mini launched only six months after the iPad 3 release
3. The mini launched only weeks after the iPhone 5 release
4. The mini launch missed back to school shopping season
5. The mini launch occurred before the holiday buying season
6. The mini screen relies on old technology, there is no retina display
7. The mini sales numbers represented WiFi-only models
8. Most Apple fans already own an iPad or two

Read more in the full article here.

[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]

25 Comments

    1. I agree that this guy is ignorant and clueless…

      > iPad is instead doing exactly what Tim Cook had in mind… taking market share from PC’s.

      This is NOT something new. The original iPad priced at $499 was Apple’s answer to the (then popular) “netbooks” (cheap-ass laptops). There was essentially no tablet market in 2010, because iPad created it. The newest iPads are STILL meant to steal customers from the PC market.

      All of these reasons are kind of stupid…

      (1) See above. It does not compete directly with low end $199 tablets. It does not need to, because even before iPad mini, Apple had something like 68% share with the “big” iPads that started at $399.
      (2 & 3) It’s a different product, so timing of release versus iPad 3rd gen or iPhone 5 is not that meaningful.
      (4) Most Apple products releases do not coincide with “Back to School” shopping, including the previous March/April iPad refresh date.
      (5) The iPad mini release date is actually timed perfectly for the Holidays. I think Apple will use this early Fall date going forward for the annual iPad refresh.
      (6) There is nothing wrong with the screen; Apple is going for less expensive, max energy efficient, and amazing lightness. A Retina Display would have raised the price and weight.
      (7) So what… at least half of previous iPad sales are for the WiFi-only configs.
      (8) Apple sales are growing so fast BECAUSE they sell to first time customers, not long-time Apple fans. This is true for Mac, iPhone, and ESPECIALLY iPad.

      1. Except that the Netbooks sport an impressive number of (mostly legacy) IO ports.

        (6) Apple needs to hold its horses now so it can offer a better display as a killer feature for the iPadMini 2

    2. No, he’s anything but ignorant. Read the source article–the quote above is Schwarz’s recitation of the market’s bullshit about the iPad mini. Schwarz knows very well why the iPad mini’s launch and ongoing sales are more than successful.

  1. “Most Apple fans already own an iPad or two…”

    First, this seems like conjecture. Second, the assumption that only “Apple fans” buy Apple mobile devices is a bad one.

  2. Imagine the sales jump when the Cellular and WiFi models are available. They are pushing the Apple stock down and know this is the biggest investment to ever hit Wall Street.

    I am getting tired of this and wish Tim Cook would do a few interviews and step in an buy more AAPL shares. Don’t let the hedge funds have all of them after they pushed them down so hard. It must have cost them a lot to move something as big as AAPL down 25%.

  3. There is no competition for the iPad mini. Nobody but Apple makes the iPad, and no other tablet is compatible with the ecosystem.

    Ya, I owned a couple of iPads before the mini, but I sold my iPad 2 to buy the mini and the iPad 3 to buy the iPad 4. I’m all in on Lightning!

    I’d write more, but my mini with LTE was just delivered and I’m off to pick it up.

  4. Three reasons why I failed to become rich

    1- Didn’t have any money
    2- Didn’t have enough specialized skills to become rich
    3- No one would give me enough money to make me rich

    1. Come up with a great new idea that solves a problem reliably and inexpensively and people will force money into your hand.

      All it takes is skill in watching how people live and work with things and then you figure out a better way.

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