7 Comments

Summary:

Is the iPad mini eating into iPad sales? It’s difficult to tell since Apple doesn’t break out sales of different models. But Sharp is cutting 9.7-inch display production, possibly due to lower demand for the iPad.

iPad Mini Phil Schiller
photo: Om Malik

And in the “there’s no market for small tablets category”, Reuters reports that Sharp has drastically cut production of 9.7-inch iPad screens. The reason, according to two sources? Standard inventory management in Apple’s supply chain. That could mean nothing more than an expected slowdown of sales after the holiday quarter, but one analyst suggests that Apple’s iPad mini will make up the majority of iPad sales in the near term, reducing the need for 9.7-inch screens.

It’s always difficult to interpret Apple’s supply chain moves, given that the company is so secretive and also because it relies on multiple vendors for components. And we may never truly know if the iPad mini is outselling the standard iPad: Apple hasn’t broken out iPad sales by model and isn’t likely to do so.

The best indicator would be the average selling price (ASP) for iPads, given that the cost difference for comparable iPads and iPad minis is $179 $170. Sales of the reduced-cost iPad 2 would muddy that figure as well.

Apple iPad lineup October 2012 iPad Mini event

Even without the breakdown of sales by model, Reuters notes that BNP Paribas is expecting the iPad mini to total 60 percent of all iPad sales in the first quarter of 2013. A lower price-point for a fully capable iPad is one reason the firm could be correct. But, as I’ve suggested for over two years: portability is a feature of devices and the iPad mini is easier to use and carry around in more scenarios, something the consumer market is now aware of.

You’re subscribed! If you like, you can update your settings

  1. “drastically cut production of 9.7-inch iPad mini screens” You mean iPad, not iPad mini.

    1. Kevin C. Tofel Jos Friday, January 18, 2013

      Thanks for the catch, Jos; just updated the post to remove the word mini.

    1. Kevin C. Tofel AJ Friday, January 18, 2013

      Thanks AJ – I used my Android calculator for the math. ;) Just kidding; updated with the correction.

  2. Nicholas Paredes Friday, January 18, 2013

    The iPad Mini is the perfect size, and most of the new iPads I see in the corporate environment are that smaller version. It is so perfect for notes and and communication.

  3. Paul Robinson Friday, January 18, 2013

    I’d say that the comparison would be iPad mini and iPad 2–hence, the differential is even lower– at only $70!!

    The mini is the entry drug of choice. :-)

  4. Did you ask Sharp and/or Apple to comment on this?

Comments have been disabled for this post