The iPad mini is such an incredible device that many of us assumed it will start to cannibalize sales of the iPad early on.
Last month we saw some early analysis that claimed the iPad mini is cannibalizing the sales of PCs, not iPads. However, a new report from Sterne Agee’s Shaw Wu is predicting that the iPad mini is starting to eat into the iPad’s sales.
As reported by Fortune, Wu has tweaked his estimates for Apple after getting new information from his supply chain sources. Wu has lowered his iPad estimates from 25 million down to 23.5 million.
In his note, Wu maintains the stance that demand for the iPad remains strong, but shipments appear limited by supply constraints. On the other hand, build plans for the iPad have been reduced likely due to some cannibalization from the iPad mini.
As a result of the lowered expectation in iPad sales, Wu’s Q1 2013 revenue estimate has been lowered from $54.6 billion to $54.4 billion. Shaw Wu believes that AAPL shares will continue to be volatile until the end of the year, but it should shift back to solid footing in 2013.