Business analyst Cown and Co. claimed that Apple’s latest tablet, the iPad Mini, provides more opportunities rather than competition to its big brother, the iPad 4.
According to the survey conducted by the financial services firm, 12 percent of the 1,225 adult consumers said they would purchase an iPad Mini within the next 18 months. The survey also presented that 16.6 percent of the respondents answered they would want to buy a tablet to replace their old ones. Surprisingly, 29 percent of those regular tablet buyers said the tablet they were replacing was an iPad.
Cowen analyst Matthew Hoffman believes the presence of the iPad Mini bodes well for the fourth-generation iPad.
“iPad Mini creates more demand than it cannibalizes.” Hoffman said after releasing his survey.
Cowen and Co’s findings appear to be contradictory to an early report by Pipper Jaffray analyst Gene Munster, who claimed that the iPad Mini (20 percent cannibalization rate) is a real threat to the sales of the iPad 4.
Munster insisted that for every five million sales of the iPad Mini, there’s going to be a loss of one million fourth-generation iPads.
Nevertheless, the Pipper Jaffray analyst stated the iPad Mini will have a much lesser cannibilazation effect on Apple’s overall sales.
Cowen added the iPad Mini provides less competition to the fourth generation iPad because 42 percent of the respondents said they plan to replace their Windows PC with the Apple tablet while 13 percent of them said they will purchase it as a substitute to their Amazon Kindle Fire.
Moreover, Cowen found out that 52 percent of the iPad Mini Buyers currently don’t even have a tablet.