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I'm an independent investor in equities and real estate. I grew up in a family of brokers, but only started actively investing independently about a year ago. I swing a hammer with one eye on a computer screen. I am always learning, namely because I have a lot to learn. I want to share my... More
  • Why The IPad Mini Exists 1 comment
    Nov 9, 2012 12:04 PM | about stocks: AAPL

    Why is no one talking about the single most obvious reason Apple (AAPL) created the Ipad mini?

    I am not here to rehash sales numbers or stock prices or to show you charts that I deem important. You can now breathe a sigh of relief.

    I just want to address something I don't see getting any sort of coverage, which has seemed glaringly obvious to me for a while now.

    Education.

    Apple has made no secret that it wants to be in the classroom. In fact it wants to be in every classroom, elementary, high school and university. It wants to not only be in the hands teachers, as iBooks Author shows, but in the hands of students as well.

    Apple realized quickly that this was simply not going to happen on the budgets that schools have to work with combined with the high price points that the Ipad commands.

    They needed something more affordable. Something that schools could buy in larger batches to spread throughout the classroom.

    They needed a budget tablet that wouldn't look like they were producing a budget tablet.

    Which brings us to the Ipad Mini. It is cheaper without being cheap. It has a smaller screen and lighter weight that make it ideal for children.

    They have created the mini as a true education product at a price that may tempt many school boards, colleges and universities. It is the tablet that will spur mass adoption.

    At least that is what they are hoping.

    Will it work? Will it be something that will produce an educational benefit large enough to justify the initial costs of mass purchasing?

    Obviously, I do not know. No one does.

    But if it does, it will be one hell of a good way to familiarize the young with their products and ecosystem. If it does, it will be a huge source of recurring revenue. If it does, it will make sure that their ecosystem remains relevant with the future purchasers of technology. Not just the present.

    What do you think? Do you have kids in school? What products do they use?

    Sound off in the comments....

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in AAPL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

    Themes: quick-picks-lists Stocks: AAPL
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  • I agree with your comments about the iPad mini. However, I don't think education is the only reason why Apple created the mini. I believe having iPad alternatives within the Apple ecosystem is a good marketing strategy. For the retail customer, given that Apple products are appealing and desirable, the decision is now between a full iPad or a mini. The mini allows the customer to justify the purchase decision, for those with a tighter budget. I believe the iPad mini is a winning product, in education, retail and enterprise markets. It should help Apple maintain an excellent market share in the tablet market.
    9 Nov 2012, 03:34 PM Reply Like
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