) knew that there would be some cannibalization when it released
the iPad Mini, but few could have predicted it would lead to a 90
percent drop in interest for the full-size iPad. According to
official sales data
, all versions of the iPad collectively sold 22.9 million units
last quarter. The company did not break down the sales any
further, leaving many to question the success of the iPad 4
versus the iPad Mini.
The answer might be found within a new report. According to
, LG Display -- which manufactures displays for the iPad -- has
reduced its full-size iPad display shipments by 90 percent.
In January 2012, LG Display shipped 6,000,000 panels for the
iPad. Last month the company shipped 600k units.
This is obviously not the same as a sales decline, but it is
significant and may point to a decline in interest for the
DigiTimes' sources believe that the drop is "largely due to
the growing popularity of the iPad Mini," as well as the
"increasing demand" for cheaper tablets.
Those tablets include the
$169 Slate 7
from Hewlett-Packard (NYSE:
), along with similarly priced tablets from Google (NASDAQ:
), Barnes & Noble (NYSE:
), Amazon (NASDAQ:
) and Samsung.
In addition to the rising threat of newer and cheaper
competitors, iPad panel shipments may also be hurt by the slow
winter production season. According to DigiTimes, January is
typically a slow period for panel shipments.
That changed last year when Apple decided to release the
third-generation iPad in March 2012. Instead of waiting a full
year to upgrade its tablet, Apple released the fourth-generation
model last October. This could have altered the release of the
next upgrade, which is now expected to come this summer (if not
closer to fall). Consequently, Apple may not currently have the
need for six million panels.
It will be interesting to see how the panel shipments compare
when the fifth-generation model is about to be released.
Still, when looking at the total number of iPad panels
currently being shipped, Apple may not be better off than it was
LG Display is shipping as many as four million iPad Mini
panels per month. When combined with the 600k panels for the
full-size model, that is a maximum of 4.6 million units for the
month of January -- 1.4 million less than were shipped during the
year ago period.
Shares of Apple are down more than 19 percent year-to-date.
Amazon, one of the firm's emerging competitors, is up roughly one
percent during the same period. Barnes & Noble has beaten the
odds by gaining more than three percent. Google is up more than
nine percent. Hewlett-Packard, a rising star on Wall Street, is
up nearly 27 percent.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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