It’s all the $%#!¥!* iPad mini’s fault!!

AAPL is getting crushed today after reporting revenues and earnings more or less in line with or at the generally lower end of expectations. iPad sales were specified, and were amazing (even if short of the rosier analyst calls). However, Tim Cook and Co. didn't specify the breakdown of sales between iPads and iPad minis.

Margins were also squeezed however. In many quarters the iPad mini cannibalizing the iPad is being blamed for this (along with continued iPhone 4/4S sales at the expense of iPhone 5's). Apple makes somewhat less on each mini than it does on each iPad.

Overall, as long as sales keep growing at a decent clip – which they are, unless you are among the most optimistic out there – that's a high class problem to have IMO. They continue to sell boatloads of iOS devices, further enhancing the iOS ecosystem. It's a virtuous cycle. And China has barely been tapped overall. I'm not saying the stock is or isn't fairly valued. But I'm not remotely worried about the company itself. And the iPad (including the mini) is an absolute mega-hit product.

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About Tony Moody

I make movies. I wield a Les Paul and an iPad. I consume media - copious amounts. And I dabble in assorted nonsense. What do you do? iPadAlone.com Indalo.biz
This entry was posted in ipad mini, Musings, Rants and tagged . Bookmark the permalink.

2 Responses to It’s all the $%#!¥!* iPad mini’s fault!!

  1. I love people crying on this topic. Most companies don’t dream with such a nice profit but Apple is in trouble.

    It is dumb if you ask me, Apple will be fine for a while. The iPad continue having 75% of the profit in the market. I will not be worried at all.

    But let’s say that the boat is sinking. In the mean time the iPad will continue to be my main machine.

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