Since the iPad mini is almost at the stage where it’s almost too mini that nobody notices it any longer, many rumors have started to pop up speculating about what is really on the road map of the Apple iPad mini AKA Apple iPad 2. Interestingly, many rumors are pointing out that Apple is debating about whether to add that prestige retina display to their iPad Mini line up; thus, delaying their release. What is the advantages and disadvantages of having a retina display on the iPad Mini? and why would they hesitate to add this feature?
The iPad Mini 2 retina or not?
With launch of the iPad Mini, the iPad mini has been largely successful, and there’s been many news articles about how the iPad mini cuts into the iPad sales. (cannibalism) The reason the iPad mini is quite popular is mainly the form factor and price, thus, consumers would choose to purchase the iPad mini instead of the iPad. Although their was no information regarding the iPad mini on the Apple’s 2nd Quarter results, many articles report that iPad mini has significantly lower than other Apple products contribution margin, hence, Apple would need to sell significantly more iPad Minis to compensate on the revenue generated by the sales of the Apple iPad. That being said, if they introduce a nice Apple iPad mini Retina version, would the sales figures compensate for the losses of the Apple iPad? There would be a huge influx of sales as a retina display iPad mini for $329 would be a bargain. Sales figures would be quite high, but would not help Apple’s next profit and loss financial statement. So what could Apple do?
the iPad mini 2 Retina solution
To solve the issue, Apple, could introduce a new line called the iPad mini Retina, and sell it with a contribution margin similar to the iPad, while continue to update their existing iPad mini line up with up to date hardware and software. They may have to raise the price. However if the demand for this 7.9 inch retina display iPad is there, consumers wouldn’t mind paying $50 dollars more for a higher resolution iPad mini with retina. Regardless, if they manage to to pull this off, Apple would compete with the 7 inch form factor along with providing the consumer with that retina display flexibility. Apple would appear to be the market leader again, and regain some publicity. Although consumers may choose the iPad mini with retina display over the existing iPad, at-least this is a way for Apple to realize what consumers really want and capitalize on it. So would you buy an iPad mini with Retina display?