iPad Mini being called an "iPad cannibal"

Posted by Mark Raby

It seems the main tech talking point ahead of Apple's iPad Mini launch is that the new device will cannibalize sales of the bigger and more expensive iPad.

Case in point - Piper Jaffray analyst Gene Munster originally said he predicted iPad sales to reach 21 million units. Now, however, he expects that number to be 20 million.

The difference? Munster is also now projecting 5 million iPad Mini unit sales. In other words, Apple is going to sacrifice about 5% of its normal iPad sales in order to gain 15% more iPad users at a lower cost.

"We believe that the smaller iPad could cannibalize one million regular iPad units in December or a rate of cannibalization at 20 percent. For every five million smaller iPads, you lose one million standard iPads," Munster explained.

According to various reports, the miniature iPad will have a 7.85-inch display, making it slightly larger than a Kindle Fire or Nexus 7 but not incredibly so.

The resolution is apparently 1024 x 768 and it would be capable of playing all the same apps that anyone can access on the iPad or iPad 2.

Obviously, apps that utilize the new iPad's Retina Display technology would not be compatible. And thus opens what could be the biggest problem with launching an iPad Mini.