AAPL Taking a Bite Out of Its Own Tablet Market 11.28.2012

The chart above estimates the iPad mini cannibalization scenarios from a conservative 50%, to an aggressive 70%.  The cannibalization of sales could be bad news for AAPL.

According to recent data provided by ABI Research, AAPL still has a majority share of the tablet market with a 55% unit shipment.  While still boasting the majority share of the tablet market, AAPL is constantly under pressure from competitors over the control of the tablet market and gave up 14% of its share this quarter, according to ABI Research.

Despite the concern of cannibalizing sales, AAPL launched the iPad mini in an effort to compete with the smaller tablets offered by ANZN and GOOG.  AAPL is depending on the success of the iPad mini to gain an edge in the smaller tablet market.  Apple stated that it sold 3 million tablets during the iPad mini’s debut weekend.  AAPL, however, has yet to release the sales statistics for the new iPad mini.

Munster, who initially estimated that 1 to 1.5 million iPad minis were sold, now estimates 2 to 2.5 million iPad minis were sold during the official weekend launch.  Mark Moskowitz, an analyst with J.P.Morgan, also believed that a majority of the sales were attributed to the iPad mini.
With a starting price of $329 dollars, the iPad mini will attract the attention of potential consumers who are set on spending less while still obtaining an AAPL product.  AAPL will continue to expand into the tablet market as a means to stimulate growth and regain lost share value. AAPL is down from a September high of $702.10.

Data provided by: Tech-Thoughts ©

ABI Research

Author: Tyler Sciortino