We have already known that Apple launched their flagship devices iPad and iPad mini simultaneously back in October and the devices is already available in different countries. But recently we heard that the iPad mini is cannibalizing sales for the fourth-generation iPad. Now, analyzing the result of a survey of more than 1000 US consumers published by Morgan Stanley and AlphaWise, Analyst Katy Huberty has stated that even iPad mini sales are clearly cannibalizing full-size iPad sales but she believes the concerns are “Overblown”.
Earlier, Apple CEO Tim Cook stated that they don’t “worry about cannibalization of our own product,” adding that “it’s much better for us to do that than for somebody else to do it.”
From the survey report, it is found that the iPad 4 is attracting slightly more users than the iPad mini and 47% of iPad mini buyers said they were new to the iOS platform, and 56% of those buying a 9.7″ iPad were new customers. These numbers indicate that the cannibalization risk factor with the iPad mini is “manageable”. It is also found that Apple’s tablet install base continues to grow faster than any other manufacturers and they have strongest 81% retention rate in the industry. It is also reported that 7% of customers who own an Amazon Kindle Fire planned to switch to an iPad and 2% of Samsung tablet owners reports they will use an Apple tablet.