Analyst: Customers Won’t Care About iPad Mini Critics

| Apple Stock Watch

Critics and pundits far and wide were quick to complain about the pricing of Apple's iPad mini, which starts at $329. Sterne Agee analyst Shaw Wu told clients on Thursday that we've seen this happen over and over again with Apple product launches, but that customers will choose iPad mini because Apple's products are the "easiest and funnest to use" and are still affordable.


"All this has happened before, and all this will happen again." It's a line from Battlestar Galactica (that was borrowed from religions and mythologies from around the world), and it's a theme Mr. Wu argued that could be applied to Apple.

In his research note, which was obtained by The Mac Observer, Mr. Wu wrote, "When you're a company like AAPL who has had such big and unexpected success over the past decade, the bar is set especially high, almost to a double standard."

"For this reason," he added, "we are not surprised to see lukewarm reviews on pretty much every product refresh over the past few years. There is always something to complain about when one is looking for something wrong."

Customers, however, have proven each and every time that the critics are missing the big picture, that "AAPL'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."

The analyst said that the iPad mini's price point of US$329 will drive sales of the device because it will be compared not to the $199 Google Nexus 7 and Amazon Kindle Fire HD, but to Apple's iPad with Retina Display at $499 and even the, "the arguably overpriced $599 MSFT Surface tablet with touch keyboard."

In the end, he said, "We believe iPad mini is positioned to do better than expectations similar to what we have seen in the past with iPod mini and iPod nano, both products that were also ironically viewed as overpriced."

He repeated his mantra that Apple's iPad mini is "the competition's worst nightmare," something he first voiced before the device was announced. He also reiterated his "Buy" rating and a price target of $840.

Shares of AAPL closed slightly higher on Thursday, ending the session at $596.54, up $1.22 (+0.20 percent), on light volume of 12.9 million shares trading hands.

Image made with help from Shutterstock.

*In the interest of full disclosure, the author holds a tiny, almost insignificant share in AAPL stock that was not an influence in the creation of this article.

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Apple is trading on it’s past reputation….  The new iterations are all evolutionary and not revolutionary.  Unless they turn that around it won’t be long until customers start exploring other options.  We miss Steve!


I was very vocal in my criticism about the Mini. I thought it was fifty or a hundred too high. I thought it would significantly cut into sales. I guess I have to admit that I was wrong. Reviews seem to be very favorable. They’ve sold out even before anyone has gotten one in their hands.

I guess Wu is right. People are comparing it to the other “premium” tablets and seeing it as a bargain. You can’t argue with sales figures and so far they look good.

Paul Goodwin

Mr Wu is right on. The flap over the Apple Maps app has been blown way out of proportion due the bar being set so high. For crying out loud, I type an address or a name in, it shows it on the map and I hit the Route button., and It eoutes it in text or on the map.

The iPad isn’t a very old product to be saying that the next miracle should be coming out of Apple.


“‘All this has happened before, and all this will happen again.’
..It’s a line ..that was borrowed from religions and mythologies from around the world..  ..a theme Mr. Wu argued that could be applied to Apple.”[/]

So…  When we mention Apple (blessed be it’s name), should we genuflect?  Bend a knee?  What?


Constable Odo

Why should consumers be concerned about what the iHating critics have to say.  People buy what they want to.  No one is holding a gun to a consumer’s head to force them to buy Mac products.  I’m sure there are lots of brands of consumer goods where companies charge more for their products and I don’t see hundreds of articles written about them or pundits sermonizing about how those companies are going to go out of business because of their higher pricing structure.  Apple charges what it feels is necessary and for those who don’t like it or can’t afford it, they should go elsewhere to buy their products

I never see bloggers complaining about the cost of items from Cartier or Tiffanys.  I’m sure they’ve been at least somewhat overcharging for products for years, if that’s the case.  What is is about Apple that brings out the gripe streak in certain people that aren’t even being forced to buy Apple products?  Apple has been charging more for its products for many years.  Why don’t the pundits get over it and stop talking FUD.


What iHating critics? I have yet to see one review that isn’t positive about the iPad mini…


For Odo:

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