Analyst: iPad cannibalization concerns called ‘overblown’; nearly half of iPad mini sales are to new customers

“A new survey of iPad mini buyers has found that nearly half are new to the platform, suggesting the smaller form factor will help grow Apple’s market share in a big way,” Neil Hughes reports for AppleInsider.

“The data comes from a survey of more than 1,000 U.S. consumers published on Monday by Morgan Stanley and AlphaWise,” Hughes reports. “Analyst Katy Huberty said although iPad mini sales are clearly cannibalizing some full-size iPad sales, she believes concerns over this trend are ‘overblown.'”

Hughes reports, “While 47 percent of iPad mini buyers said they were new to the platform, 56 percent of those buying a 9.7-inch iPad were new customers… [The survery] also found that Apple again has the strongest retention rate in the industry, with 81 percent of iPad owners saying they will stick with Apple.”

Read more in the full article here.

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12 Comments

  1. Cannibalisation is GOOD!!!! It happened with the iPod mini and the iPod; it happened with the iPhone and the iPod; it happened with the iPad and the netbook/laptop … and now it will happen with the iPad mini and iPad!!!

    All that is important is that Apple is selling products that people want … in tech cannibalisation is bound to happen … the only important thing is that it is Apple that is doing it and not someone else! … Put another way if people prefer the 7inch form factor then if Apple didn’t build one someone else would … so the cannibalisation is going to happen anyway.

    Only a moron thinks that you can avoid cannibalisation by NOT offering the product people want, but by forcing them to buy something that is not ideal for their needs.

    As long as the total iPad sales continue to grow things are OK … if they start to stagnate then either the market is saturating or there is a problem … haven’t seen this happen yet.

    All the best MDN, and keep up the good work

  2. The bigger question is: Do you want to be a cannibal or do you want to be roadkill?

    To the extent that Apple is selling more units and in the process broadening its user base, this has to be a good thing – embrace, extend and extinguish. For every customer buying an iPad mini, that is a customer locked into the Apple ecosystem and by definition locked out of the Android platform.

    Apple is not only extending the iPad line but also pushing the Nexus line to the margins. This is the only way to achieve king of the hill status and deny Android bragging rights over how many tablets have been sold over the Christmas quarter.

  3. So what if they’re cannibalizing the bigger iPad!!! People will be more likely to buy a new one next year if they’re not shelling out $500 – $800 each time.

    1. That’s a great point. A LOT more people will be upgrading from iPad Mini 1 to 2 than iPad 3/4 to 5. There will be a much bigger leap with the iPad Mini. End result? More sales, more profit for Apple.

  4. Even if iPad mini customers are NEW customers, that’s still “cannibalization.” They may have purchased one of the other iPad models otherwise… However, I don’t see the problem either way. They are still buying an iPad instead of something else, and Apple’s profit margin on iPad mini is likely to be just as good as on the bigger (Retina) iPad. And because the entry price is now $329 instead of $399 (for iPad 2), Apple is likely to have more customers for iPad.

    Obviously, most customers consider an iPad mini at $329 to be a “better value” compared to a $199 tablet from Amazon or Google.

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