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Apple investors aren’t exactly getting good news today. The company’s share price dipped under $400 today, last time this happened was back on December 22nd, 2011. Now according to upstream sources in iPad mini supply chain, lacking demand for Apple’s mini tablet might result in Q2 shipments dropping by as much as 30%. Apple is expected to ship around 10 to 12 million units this quarter as opposed to the 15 million units it shipped in the previous quarter. One reason cited for this lack in demand is that prospective customers are holding off purchases because they’re waiting for the second generation iPad mini, which will reportedly tout a Retina Display.

That seems like a logical explanation, however it might not be the whole story. Smartphones such as the Galaxy Note 2 could prove to be stiff competition for the mini tablet. There’s one in particular that can almost be considered as a full blown rival, the Samsung Galaxy Mega, a 6.3″ smartphone which is likely to give iPad mini a run for its money. Smartphones that come close to the screen real estate of the 7-inch tablet would seem like a much better choice for prospective customers as they wouldn’t have to carry around a separate smartphone and tablet. Do you think such big smartphones are eroding iPad mini’s market share?

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