Friday, December 14, 2012

Supplies May Have Affected Sales Of The iPad Mini

iPad Mini
iPad Mini
(Image Credit:

The demand for the iPad Mini is rather high but if the supply is not enough to meet the demand, sales will definitely suffer.

This was the insight of Shaw Wu, an analyst from Sterne Agee, in a recent report. Sales of the iPad were not as expected due to shortages in the supply of the iPad Mini, which has also affected the sales of the full-size model of the device.

The insight of the analyst is just one among many who were concerned of the sales of the popular products of Apple. However, Sterne Agee has a more positive outlook in the sales of the iPhone although the company was apprehensive of the sales of the iPad, particularly with that of the iPad Mini.

Even as the supply of the iPhone has caught up with its demand, sales of the iPad remained rather bleak. According to Wu, this can be attributed to shortages in the components for the Apple iPad Mini, which resulted to consumers purchasing the full-sized iPad instead of the iPad Mini.

This has resulted to an adjustment to the sales projection for the iPad from 25 million units to only 23.5 million units. A good number of analysts have projected iPad sales of not more than 24 million units. On the other hand, Wu projects sales for the iPhone to reach around 47.5 million units, which is much higher than the 46 million unit sales of a number of analysts.

An increase in supply will increase sales and more profits for Apple. With the upcoming release of the iPhone 5 in a number of countries before the end of the year, sales of the smartphone offering of Apple will likely increase.

However sales of the iPad Mini has yet to catch up with the demand and the supply is the likely culprit for its relatively limited sales. Factor in the effect of the iPad Mini on the sales of the full-sized iPad, sales are below expectations.

The supply problems of the iPad Mini have also affected the confidence of investors in the profit margins of the company. However Apple revealed that the current situation is only temporary due to the release of a number of devices into the market.

Apple will have to improve its supply of the iPad Mini in order to meet its demand and ultimately increase its profit margin and leave its investors with a smile on their face.

No comments:

Post a Comment