Apple stores have lines for the 8-inch screen version of its trend-setting iPad. But anecdotal reports indicate that opening weekend sales will fall far short of the pace set by the company’s other recent products. That’s contributed to a 3.4% decline in Apple’s share price today, to $576 in mid-afternoon trading. The price is off 4.5% from about two weeks ago when CEO Tim Cook unveiled his long-awaited challenger to 7-inch screen tablets from Amazon, Google, and Barnes & Noble. Critics say that the iPad Mini, with its $329 entry price, is too expensive to knock out its less costly rivals — which also offer sharper screen images. Piper Jaffray analyst Gene Munster projected that Apple could sell as many as 1.5M units of the new tablet this weekend — about half the number of new iPads Apple moved the weekend in March when they were introduced. But Sterne Agee’s Shaw Wu remains optimistic. ”We believe what a lot of critics miss is that [Apple's] products are still by far the easiest and funnest to use with price points that most find reasonable. We believe this has been instrumental in helping driving greater than expected sales each time.”


Sigh. That’s because more people have smartened up and now pre-order online. Though btw, Fortune just reported that Apple’s flagship NYC store sold out in less than two hours.
P.S.: “Franzy”?
That’s not uncommon for that location, combined with reports a month ago that indicated serious supply problems thanks to complications with the new design and manufacturing process, which were pronounced enough that many analysts predicted a delayed launch.
It’s clear that Apple decided to just release what stock they had, and hope a quick sellout would be as good for PR as a similar situation was for the Wii when it launched a few years ago.
It isn’t that demand is high, more that supply is limited. We won’t know how popular this new line is until well into December.
The analyst is correct. The Ipad mini is too expensive and people will either pay $50 more for a regular one or get one of the cheaper 7 inch tablets.
I already have an iPad mini. It’s called an iPhone.
I have plenty of Apple products but I am not inclined to buy the first generation of any new product they make. Some day they are going to have to give you your money’s worth and not try to ask you to pay more for a product with crappier resolution than a cheaper competitor.
It’s not first gen. This is the same as ipad2, but smaller.
IPad Mini isn’t going to be as popular as the 10 inch iPad, but it’s a different iPad. It will fit nicely into a niche market and possibly draw a new niche of consumers. Those who would spend almost as much for an iPad to get something, almost as good. Now they don’t have to.
I for one would like to have a smaller device for my mom. She uses an Iphone, but doesn’t always deal with it’s small size without complaining, yet she doesn’t want the large/”heavy” ipad. It’s to large for her. So a 7 inch tablet will be closer to something she’d like. She likes Netflix and watches Netflix and also likes to type, but the iphone is a huge challenge for her. She ends up typing with a stylist, because she has limitations that don’t allow her to use her fingers on the phone.
There are also reasons I would like one. For one I have an original iPad, but I’m a bit cash strapped now so I can’t justify paying top dollar for a 10 inch replacement device. The features I want on the newer tablet are Siri voice recognition, all the apps I would normally use (astronomy apps) and the ability to mirror the display in VGA. When watching movies the size of the screen doesn’t have to be 10 inches for portable viewing. An 8 inch screen would be good enough. If I wanted to watch on a bigger monitor I could airplay it or use the VGA. I have a real need for a VGA, the improved camera and frankly I haven’t spent the time updating my 3g enabled Ipad. I have ony 16 gigs of ram but run into limitations due to memory and storing so many photos on it.
Rather than go through the hassle up upgrading the iOS and reload all my photos go to the cloud, etc, I can kill many of the birds off my wishlist by getting a Mini. As it is, the apps I’d use the most for portable uploading from wifi in the field will run fine on the Mini. I don’t need 3g for the mini if it’s going to be used as a niche device, by my Mom or as an extra iPad in the field. I can use and still use my older iPad and have the Mini for the special occasions where I want to use VGA output for monitor displays of Astronomy Apps.
In any event, the things that would make a “high storage” iPad 2 and it’s added features wanted for my hobby are equaled with the Ipad Mini. The main features of the iPad 4 are IPad 2 features by speech to text capability. I have a friend who doesn’t type anymore and only talks and corrects his emails on an Ipad 4. My ipad won’t upgrade to Siri speech to text, but the Mini does it. So for all the niche reasons I’d accept an Ipad2 or Ipad 3 I can get those in the Ipad mini, and I don’t even need the cellular one. It would be nice, but since I’d likely be using this for my parent and don’t need to get the cellular version while using it for it’s specialized functions, I can use the Mini for the niches I’d need it.
Is the Mini worth it? Well I’m very happy with the specialized apps that the Ipad has that are not matched at all by Google android apps, in any way shape or form. The astronomy apps released with the first release of the Ipad have not yet been matched on the Android operating system. Whenever I show people the Astronomy apps on this device, my old device by the way, they always want the Android version of it, if they were unfortunate enough to have cut budget corners to get an Android phone or tablet. I’m left telling them about substitutes that are not as good and they always feel a bit disappointed. Now they are closer to having an answer, they won’t hopefully spend $100 less for an android tablet that has wonderful hardware, but has software apps that are sorely lacking, even against some basic programs like Starmap Pro.
Not surprising. They could’ve gone bold and made it a 7 inch screen, but they chose to play it safe, and opted to make it larger, actually touting the fact that their MINI tablet is BIGGER than the competitions small tablets. Why would you brag that your tablet designed to be smaller is bigger than the competition? Ever since Steve Jobs died, it’s pretty clear that Apple just doesn’t know what it’s doing anymore. Give it another decade, and this company will be as irreverent as it was before Steve Jobs took it over again.
Agreed. They blew it on the price point… pure and simple.. They shouldn’t have gone over $250.00 That’s the sweet spot for the small tabs. If you’re willing to pay $330 on a tablet, at that point, you’re only $170 away from the full size equivalent.. or less if you get a reduced price on the 3 when the 4 coms out.. And your $130 over your nearest competitors starter tablet.. Granted the iPad does so much more.. But you really bet the farm on brand loyalty (on people who already have tablets) instead of opening up a whole new market…
Apple have now screwed up twice in the last couple of months.
Why is no one mentioning the their massive screw up with the ipad nano moving away from the small square design which was perfect for watches.
The ipad mini doesn’t have retina, has 1 average camera and a 2 year old processor. Then the price… All they had to do was push it under $300 but hey when your blowing a product you may as well over price it too.
This last one is a little secret for apple stores, major apple stores set sellout deadlines so if they don’t sell enough to sell out they have still sold out within a reasonable amount of time.
Apple hasn’t screwed up anything. They know their customer base and exploit it expertly. Sure, Apple’s price points are overinflated, BUT folks are paying it. So who’s really at fault?
It’s not the entry level price that’s problematic. It’s the level of the price for models with cellular data connectivity and more memory capacity. 559 $ for 32GB and LTE is almost double of what you have to pay for the similar Nexus 7 model, 299$ (except for LTE, Nexus has only 3G ).
Still: people will pay the exaggerated premium. The iPad still offers the best user experience of any tablet (that’s why iOS has such a large market share in actual web traffic) and now comes in a much lighter package (only half the weight).
your all wrong cause the ipad mini is sold out in sacramento. I called around only the 64 gig is left a few 32 gig only in black. And its only saturday night. they will reach well over 3 million. So all this talk and comments don’t mean anything. It just goes to show how strong apple is as a company and how important a eco system is to a tech business. Amazon and google are going to lose a ton on there tablets. And best buy just told me they sold out yesterday of the minis. So whine all you want people are buying. Apple stock will take off again woo hoo!
It’s a premium product for a reasonable price. Comparing it to Google’s or Amazon’s is like comparing a Benz to a Chevy.
The fit and finish of Apple products are second to none. I’ve compared my 4S and the iPhone 5 to the Galaxy SIII. Besides the goofy over-sized screen it’s shell is made of plastic (pardon me, in response to complaints they said it’s polycarbonate).
BTW, initial sales of the iPad mini exceeded 2 million.