iPad mini hurting iPad 4’s sales: Analyst

NEW DELHI: Apple iPad mini, the recently-launched smaller version of the company tablet, seems to have become a runaway hit, but at the expense of its bigger counterpart. There are indications it may be cannibalising the sales of the fourth generation iPad.
Citi analyst Glen Yeung conducted a survey of 50 Apple stores recently and found that iPad mini has been flying off the shelf, whereas the fourth-generation iPad is cooling its heels at the retail outlets, according to a report by tech website CNET.

Though 80% of the stores participating in the poll revealed that at least one variant of iPad mini was in stock, 96% said overall inventory depended on pricing, storage capacity and colours. Buyers seem to be least interested in the 32GB iteration of the device, according to Yeung's survey.

In contrast, the fourth-generation iPad was available in 100% of the stores and only 6% said stocks were below par.
As per Yeung's estimates, 10 million units of iPad mini went into production for this quarter, as compared to 10-15 million units of iPad 2 and fourth-generation iPad combined. He took note of a report in Economic Daily, which said Apple has asked display panel maker AU Optronics to halt the shipments owing to high defect rates.

Rumours say AU Optronics is going through problems in producing the display for iPad mini, which is more difficult to make than full-sized iPad's panel. Yeung predicts that the company will take care of these issues by the end of this year and production of iPad mini will rise.

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