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Analyst thinks that the iPad mini will be the doom of other tablets

Discussion in 'Apple iPad News' started by dgstorm, Nov 2, 2012.

  1. dgstorm
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    dgstorm Editor in Chief Staff Member

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    iPad mini hasn’t even been out long and analysts are already predicting the new iDevice will prove to be the doom of rival tablet manufactures. Sterne Agee analyst Shaw Wu feels like the iPad Mini will grow to be an immense threat to other brands of tablets.

    Wu thinks other manufacturers have done a lousy job at designing a device for the $400-and beyond sector. He feels that if Apple will release a tablet priced under $300, the situation would become even more dramatic.

    "We continue to believe iPad mini is the competition's worst nightmare and will likely slow down adoption of competitor tablets. In particular, we believe this could end up being a very tough holiday season for Windows 8,†said Wu in his note to investors.

    Even with iPads being priced starting with $399, Android tablets are finding it increasingly difficult to compete with the tablets put out by Apple. Nevertheless, it is still unclear if Cupertino will decide to design a tablet whose price will be cut off as to reach the $199 segment which tablets like Amazon Kindle Fire HD and Google Nexus 7 rule at the moment.

    Wu also pointed towards Microsoft’s Surface RT tablet which he feels is extremely overpriced at $599.

    Even if the iPad mini was first rumored to be priced in the $249-299 range, Wu believes that the current price won’t affect the sales of the shrunken tablet. He reminds readers of what happened with the iPod mini and iPod nano.

    "This controversy reminds us of what happened with iPod mini and iPod nano. Both predecessors were criticized as being overpriced but went on to do much better than expected. The key reason being high quality at a reasonable price and we see something similar here."

    By Radu

    iPad mini is Windows 8 hardware makers' worst nightmare, analyst says
  2. KevinJS
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    KevinJS Super Moderator Staff Member

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    My own bit of amateur market analysis leads me to believe that there will be room for bit players until we reach the point of market saturation. Then the fun will begin. There will be a period where there will be several apparently viable contenders, but the market place will whittle them down to two or three. My guess is that Apple and Samsung will be the only vendors of tablets within five years. B&N, Amazon et al will become suppliers of application software on other platforms.

    Microsoft have an uphill struggle. Not only are they a very late entrant into the tablet field, they are not exactly renowned as a vendor of quality hardware. Without the adoption of Windows, itself a flawed offering which succeeded only because there was little serious competition, MS would have foundered years ago. Their last real piece of brilliance was buying Hotmail, and they could have done a far better job than they did with that. Gmail seems to be the web-based mail client of choice for many people, even though Hotmail predates it by several years.

    As far as I can see, the only hope for MS is their Office suite. If they have any sense they will make sure that you can only get it if you have a Surface, but should have Apple and Android versions available so that they can at least make something if the Surface bombs, as I'm sure it will. It took MS years to get Windows right, and I don't think the buying public will have much faith in their ability to hit the ground running in the tablet wars. Their track record suggests the opposite.

    Sent from my iPad using iPF
  3. The OB
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    The OB Super Moderator Staff Member

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    It's a funny thing, as I read this (which is after all just one man's opinion), I say to myself "I'm really enjoying this iPad and all the things it does. It's just great, but I just wish, as I'm comfortably reading this in my lounge chair with the thing propped up on my not-over-slim stomach, Gee it would be nice if the iPad could be a bit bigger. Would love a bigger screen! Don't change anything! But maybe just a bit bigger, say even 13 inches?"
    The mini iPad, probably great on a bus or train, but for me not the way I use it. And that is not to disrespect any other person's preferences.
    But I'm not too sure it will cause the demise of any other larger tablet.



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  4. AQ_OC
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    AQ_OC Super Moderator Staff Member

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    I have never found myself wanting a bigger screen on my iPad. What I do want, though, is for it to weigh less. I'm thinking the former factor here will make a huge difference to a lot of people. Plus, it is cute.
  5. BettiBz
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    BettiBz iPad Fan

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    Wish I had known this before buying the I pad 2

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  6. CoreDump
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    A Panda is cute too but I wouldn't want one as a pet. Apple seems to insist on making huge profits on the backs of consumers and the teenagers who make their products. There are other tablets which actually are more innovative and provide better features than the Ipad in either size. I was interested in the Mini until once again Apple decided to under-spec and over-price. Maybe in 6 months the New mini will go Retina and stun more uninformed people into shelling out large wads of cash to prop up Apple's falling market share.
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  7. KevinJS
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    KevinJS Super Moderator Staff Member

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    I'm not sure that ANY consumer really has Apple's financial interests at heart when they purchase one of the companies offerings. You pay your money and you take your choice. That's the way of the market. If people are uncomfortable with the pricing, they have other choices.

    I don't know whether there will be an iPad mini with retina display, an iPad 5 or an iPhone 6 in 6 months time, but what I do know is that Apple will still be around to support the hardware that they are selling now.

    The teenagers who make their products live and work in a different economy. The rights and wrongs of using cheap labor economies have been debated ad nauseum. If I lived close to a Foxconn factory, chances are I'd be glad to work there. I wouldn't do it through choice, but those who do work there have little or no choice. Most people wouldn't want to do my job, and that's good too. In the western economy, that means I get a higher rate of pay that I would if everybody was flocking to my companies door to supplant me.

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  8. CoreDump
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  9. CoreDump
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  10. KevinJS
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    KevinJS Super Moderator Staff Member

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    Well, if you REALLY want to know what I think, I'll give it to you. I have no intention of getting political, and this should not be read as a political post in any way. It's purely opinion.

    I think NAFTA should introduce import tariffs of somewhere around 1000%, where a product could be manufactured in North America, and is manufactured overseas in order to take advantage of cheap labor "economies".

    IOW, design it in Cupertino, build the damned thing in Cupertino and ship it from Cupertino. Then congratulate yourself on really doing a few favors for the American economy.

    And if Samsung have an issue with that, there's plenty of room for them to build factories here too.
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  11. thewitt
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    thewitt iPad Ninja

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    KevinJS

    Glad you are not in charge.

    High import tariffs only punish consumers.

    NAFTA by the way has no authority to do anything even remotely similar to what you suggest. You might want to Google it and see what the North American Free Trade Agreement actually does and why it was created.
  12. KevinJS
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    KevinJS Super Moderator Staff Member

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    Hi, thewitt, I thought we might hear from you about now.

    Of course, the way things stand you are right. It's way more complex than a single post could possibly convey.

    I'm not fool enough to think its as simple as that, but I don't want to be in charge anyway.
  13. thewitt
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    Apple has done amazing things for the US economy by continuing to invest billions here at home. Profit is NOT a dirty word, and the lift in the economy provided by companies like Apple who employ thousands of people in the US cannot be over stated.

    The US will never be a competitive manufacturer when labor is the bulk of the manufacturing cost. It's simply not in the realm of possibilities.

    Foxconn employs over 100,000 people working on the iPhone in just one location. Foxconn is not Apple by the way, they simply bid on the contract, and while not low bidder, they qualified on all counts.

    Any US manufacturer is welcome to bid as well, and should they be competitive, they would stand a good chance of winning it.
  14. KevinJS
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    KevinJS Super Moderator Staff Member

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    Anyway, CoreDump and thewitt, thanks for the valued contributions, but I think we should get this thread back onto its original track before we all get a slap.

    I had reason to have a look in Staples over the weekend, and saw, for the first time, Windows 8 running in all it's glory on nearly every PC in there. To say I was shocked would be an understatement. Although you can switch back to a more classic screen layout, the version that was being displayed looked like a cheap and nasty video game. The salesman who answered a few questions I had told me that he thought that MS were aiming for a look similar to the Xbox. Suddenly, I was quite pleased that my PC runs Vista.

    If this is what Surface is going to look like, I would say that MS have given up the fight without getting in the ring. Of course, beauty is in the eye of the beholder, but I can't see anyone finding that pleasant.
  15. The OB
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    Slap you Kevin? Geez, anyone wrestling huge transport rigs around the country side would have to be a lot bigger than me. No way!
    Regards, Andrew



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  16. CoreDump
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  17. BettiBz
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    BettiBz iPad Fan

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    Am not sure what retina is...could u pls explain?
  18. s2mikey
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    Consumers are also punished when they lose their jobs to dime a dozen foreign labor. If consumers have no job or have a crappy job then they can't buy stuff. NAFTA isn't such a good thing. No google needed to determine that. Profit is good but so is a strong working class. They can both be balanced a little better, IMO. Sorry to have gone off for a second there. Just not a big NAFTA fan.

    But, that all being said, the iPad is a cool device. I'm not sure if the mini is gonna put the others out of business though. The kindle fire is a fine product and so are some of the other tablets out there. The mini felt rushed to me, like just in time for Christmas. We shall see.
  19. AQ_OC
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    I agree that it is likely that Apple released the mini before they could perfect the technology need to delivery it with a 2048x1536 screen (326ppi) with 10+ hour battery life, very light weight, and good thermals. The current mini beats the pants of the GN7 in terms of battery life, iirc.

    Also, I think Apple would do well to not think of the iPad 4 as is flashship tablet. A version of mini, with the above characteristics in place, would trounce iPad 4. It could be offered as an alternative to a 10-inch tablet and have the same price.
  20. Good karma
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    The reason consumers and teenagers like apple is because they are a no nonsense design, easy to use and with itunes and app store have a great eco system that rivals like samsung have failed to emulate. The seamless integration between devices also make apple designed products more popular. In my workplace when i use the xerox coppier which have touch screen, i with apple designed the ios on it. When i go to the gym i see tonnes of white apple head phones connected to various apples from ipod touch to mini's. apple products are not cheap, and given they are so popular shows that people are not idiots either, they are willing to pay more for a BETTER technology. Luckily for people with less means they have alternatives in the form of crackberry, samsung , htc. I bet these non apple users with they had the real item instead of the fake one with inferior operating systems and no user friendliness

    RIP Steve Jobs 
    Last edited by a moderator: Nov 7, 2012

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