Apple shares fall following iPad mini pricing announcement

Ashleigh Allsopp
25 October, 2012
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Apple’s share price fell following the company’s special event on Wednesday morning, and reports are suggesting that this could be down to the iPad mini’s price tag.

The Washington Post reports that “as soon as the price was unveiled” for the iPad mini, Apple’s $369, 7.9in iPad set to compete with Amazon’s Kindle Fire and Google’s Nexus 7, share sell-off’s sped up, and the share price dropped more than US$20, ending with a decrease of 3.3 per cent.

“Who’s going to buy it?” Matriz research analyst Michael Allenson said following the iPad mini’s announcement. “And what are they going to use it for? I don’t see that it’s differentiated enough.”

“When I look at the data from our tablet research, it tells us that people are looking to have fewer devices,” Allenson said. “It’s a lot of choices that Apple’s put in front of people. The question is, are they going to get more people through the door?”

On the other hand, Forrester’s Sarah Rotman Epps said: “In some ways, [the iPad mini] is cannibalising its own potential sales, but it’s also expanding Apple’s addressable market.”

However, Apple has seen a huge success will its full-size iPad, selling more than 100 million iPads in two and a half years, and dominating the tablet market with a 70 per cent share.

READ: Tim Cook: Apple by the numbers

Plus, the iPad mini was not the only announcement at Apple’s event. Long-awaited new iMacs were launched, as well as a 13in MacBook Pro with Retina display that could prove a popular laptop choice, a new Mac mini, and a fourth-generation iPad.

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