Apple really need iPad Mini?

Or the old saying goes, the Apple rumors never stopped, for example, the next generation iPhone look like? Will launch at what time? In addition to next-generation iPhone, more recently, to talk about the upcoming of the iPad Mini: the iPad the Mini screen size will be less than 8 inches; the iPad mini is expected to be released later this year; priced between 249-299 U.S. dollars ... regardless of rumors how, the iPad the Mini, when available, certainly the market will cause a huge impact, but Apple introduced the wisdom of such products? Apple really need iPad Mini?

Why Apple will consider the introduction of smaller iPad the Mini? The simple answer is - profit. Industry insiders say the iPad Mini launch of Apple will become a defensive measure, its purpose is to prevent the Amazon Kindle Fire, and Google's Nexus continues to erode the influence of the iPad. Perhaps the iPad Mini and the Amazon Kindle Fire, and Google's Nexus 7 competition, and win the final victory, but Apple is not should consider the success of the opportunity cost? iPad Mini to Apple? Apple really need iPad Mini? Technology blog Gigaom columnist Rags Srinivasan brought us his personal views, mainly from three aspects of the competition between the users, competitors, and the iPad Mini and Apple's own products:

First, the user 
1.low-end users
The low-end users here refers to those who have never considered the purchase of flat users, because the Tablet PC of little value to them. Although the number of such groups, but they differ from those "deep pockets" of Apple products purchased before the only way to impress them is probably the only low prices, it is clear that Apple used to some only the pursuit of "high-margin, high end of the market "style is very dissonant.

2.Kindle Fire and Nexus 7 users

Obviously, the type of user's choice is like the Kindle Fire and Nexus 7 such low-end flat-panel. A customer survey found that consumers plan to buy a Tablet PC in the next 90 days, only 8% of consumers would choose the Amazon Kindle Fire contrast, about 73 percent of consumers said they will choose the Apple iPad. Since the iPad is still so popular, why Apple would choose to launch and similar products Kindle Fire to seize the meager market share? 8% market share for Apple really is not much attraction Moreover, iPad Mini profits of absolutely smaller than the iPad.

3.Existing iPad users

As already said iPad's popularity is still very popular, Moreover, to afford the iPad (including iPhone) users mostly are highly rich handsome, they are not sensitive to price, that is, the price level of the user to purchase Apple products not play a decisive role. The survey shows that are ready to buy the iPad users, half of the people and do not care about the price of a new generation of the iPad. In this respect, Apple is absolutely no need to introduce the iPad the Mini.

Second, competitors

As a representative of the cheap flat the Kindle Fire opened the first of its kind of cheap flat-panel, and the eyes of Apple's high-end market, iPad can be said to represent the high-end flat. If the iPad want to enter the low-end market, or follow the example of Amazon's current price, or try a different price to become "price makers". We all know that Apple never want to even bother to do a follower or imitator. In any case, the price Amazon has had accounted for the initiative, the iPad the Mini the most likely pricing will be $ 299.

Competition between the iPad the Mini and Apple's own products

If the iPad Mini final price of $ 299, then, is bound to affect sales of other Apple products, iPad Mini, Apple's overall market share, revenue and profit improvement is rather limited role.

1.iPad

Similar situation had iPad 2 above, although iPad2 sales are good, but the low price of $ 399 will allow consumers who had been considering the purchase of new iPad to reconsider, to buy a iPad2 in place of new iPad. This is not surprising, because some consumers feel that price iPad2 can get the consumer surplus value. If the iPad Mini price, iPad Mini and the iPad, the user will choose the former, the truth is still the same, because the more attractive the higher the consumer surplus value to the user.

iPad, an average price of $ 590, up to 47% gross profit margin, iPad Mini also reached the same gross profit margin to its low price (assumed to be $ 299) means that in order to earn the same profit per sold one iPad sold 2 iPad Mini, in the highly competitive low-cost flat-panel market, which is much harder than expected.

2.iPod Touch

Kindle Fire is still on the iPod Touch pose too much threat, but the iPad Mini Once available, the iPod Touch and iPad Mini is likely to have the respective status of the formation interfere with each other. Maybe Apple is willing to sacrifice the iPod Touch to fulfill iPad Mini, but the shift, and ultimately brought the actual profit is minimal.

For Apple, the iPhone is like a jewel in the crown, so position The iPad Min want to shake the iPhone almost impossible. However, if the iPad Mini priced at $ 299, some users may consider to buy a normal phone for the daily call, and then buy the iPad Mini iPhone alternatives other daily activities, if they do arise this case, the apple in order to get an iPhone the same profit, it must be sold 4 iPads Mini, which is obviously not good news.