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iPad mini is a cannibal, but it creates more demand than it consumes

iPad Mini Cannibalization Survey

Apple’s (AAPL) new iPad mini will cannibalize sales of the company’s full-size iPad. It goes without saying. What remains unclear, however, is whether or not that’s a bad thing. According to BOM estimates, Apple’s margins on the iPad mini are in the same ballpark as margins on its pricier tablets. And according to a recent survey conducted by financial services firm Cowen Group, the iPad mini does much more good than harm.

In Cowen’s survey of 1,225 adults in the United States, 12% said they plan to purchase an iPad mini within the next year and a half, AllThingsD reports. More than half of those who plan to purchase an iPad mini said it would be their first tablet, and 83% said the slate will not replace another device. Of the 17% who claimed the iPad mini would replace another device, only 29% said it would replace a 9.7-inch iPad.

“The iPad mini creates more demand than it cannibalizes,” Cowen analyst Matthew Hoffman said. “Since 52 percent of the mini intenders in our sample did not own a tablet of any type, we see it successfully positioned as likely to penetrate new entry-tier segments. [The iPad mini] will no doubt take some iPad ‘4’ sales, but its low price also looks like an important tool to capture new consumers’ attention.”

Zach Epstein

Zach Epstein has worked in and around ICT for more than 15 years, first in marketing and business development with two private telcos, then as a writer and editor covering business news, consumer electronics and telecommunications. Zach’s work has been quoted by countless top news publications in the US and around the world. He was also recently named one of the world's top-10 “power mobile influencers” by Forbes, as well as one of Inc. Magazine's top-30 Internet of Things experts.

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