Survey: iPad mini cannibalization is ‘manageable’

Neil Hughes for AppleInsider:

However, the poll did indicate that the iPad mini is currently attracting slightly fewer new users than the full-size 9.7-inch iPad. 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.

Huberty said these numbers show her that the cannibalization risk Apple faces with the iPad mini is “manageable.”

Morgan Stanley polled 1,000 U.S. consumers to come up with the data.

Other interesting info suggests that Apple’s still got the strongest retention rate in the tablet business – 81 percent of iPad customers plan to stay with Apple.

  • crustyjusty

    Wall Street has a really hard time with the concept of cannibalization. Even in business school, we learned that companies should try and avoid product cannibalization. At the same time, we read dozens of case studies (Xerox, US Steel) where companies that tried not to fell on hard times.

    Apple should be thrilled that a new form factor is keeping people on their platform. Nothing to see here.

  • We’ll see if the 81 percent remain so loyal once they get to sample Windows RT in many of the most popular retail outlets soon.

    • Yes, we certainly will.

    • rattyuk

      What makes you think that once people get their hands on this Frankenputer it’s going to make a difference?


  • JDSoCal

    So, in other words, Apple may slightly lower its margins on ~9% of its iPads in order to bring in 56% new customers for the Mini.

    Show me a CEO on earth who wouldn’t sell his firstborn for those numbers.

  • Boo

    Devices actually don’t tend to be marked up very much, so they may not make much less on the iPad Mini as opposed to the RD iPad. If I had to guess, I suspect they make the most profit on the iPad 2 as manufacturing costs for the same device tend to drop with time, they charge the same price for it and the other iPad models are newer designs.