Gene Munster: Larger ‘iPhone 6’ may Cannibalize iPad Mini Sales
Assuming a larger display ‘iPhone 6’, Piper Jaffray analyst Gene Munster predicts that a certain amount of cannibalization of iPad Mini is likely. However, the analyst sees the overall effect on Apple as “neutral”, suggesting that ‘iPhone 6’ buyers could opt for an iPad Air instead of a Mini, CNET is reporting.
Rumours so far have hinted that Apple will bump up the screen size on its next iPhone. Some reports have even claimed that the company will unveil two new models later this year i.e one with a 4.7-inch screen, the other with a 5.5-inch screen. Amidst a plethora of similar reports and rumours, Munster has shared his cannibalization concerns in an investors note released today. Furthermore, Munster has predicted only a 5% increase in Apple revenues this quarter over the same quarter last year.
“In some cases, consumers might update to the iPhone 6 to score the bigger screen instead of keeping an older phone and buying an iPad Mini, Munster suggested in an investors note released Monday. In other cases, iPhone 6 buyers who want a second device might simply choose an iPad Air instead of a Mini.
Apple announces its fiscal second-quarter results this Wednesday. Munster predicts that earnings will reach the higher end of Apple’s own guidance with revenues close to $44 billion, iPhone unit sales of 38.5 million, and iPad unit sales of 21 million.”
Similar concerns were also tossed around when Apple introduced the first iPad Mini in 2012. But as long as overall demand and revenues stay strong, Apple benefits no matter which product is selling more, don’t you think?