Apple iPad Mini Likely to Thwart Sales of iPad

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It was speculated that Apple’s so-called iPad Mini can have a cannibalization rate of 20 percent. That means that every five 7-inch tablet sold would take the place of one full-sized iPad.

Assuming that the smaller device hits the shelves November 2, Piper Jaffray’s Gene Munster predicts that the company could sell at least 5 million units in the last quarter of this year. That would be enough to take the place of at least one million regular iPads for the holiday shopping season.

Sales Forecast for Full-sized iPad and iPad Mini

Prior to this, the analyst made a sales forecast saying that Apple could sell 21 million units of iPad for the December quarter. But with the expected arrival of the 7-inch tablet, Munster increased his sales forecast to 25 million.

He also estimated that iPad sales could go as high as 95 million for the calendar year 2013. The analyst even pointed out that the smaller device would account for almost a quarter of Apple’s total iPad sales next year.

But because the rumored iPad Mini will be offered at a lower price, Munster believes that the average iPad selling price in the next calendar year would drop from $527 to $495.

Estimated Selling Price

Aside from the sales forecast, Munster also believes that an entry level iPad Mini would cost around $249 to $299. He also speculated that the said model would feature 8 GB or storage, although its screen would lack Retina Display.

It is also possible that customers would look for a device with greater capacity, and that could come in with a selling price of $350 to $360. That would be a 20 percent increased from an assumed base price of $300, which is also in-line with the latest iPad sales figures.

The analyst’s earlier forecast assumed that Apple’s iPad Mini will not feature a “full slate of options for storage and wireless.” However, it was reported that the company is set to launch 24 new and different tablet configurations. In addition, each model would have two color options—black and white.

It is expected that the iPad Mini will have a smaller bezel, as well as a screen resolution of 1024 x 768 pixels. This would enable a native iPad 2 application to run on the 7-inch tablet without any modifications. The device would also boast a front and rear-facing cameras, as well as the Lightning connector that can be found on iPhone 5 and the latest iPod models.

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