The latest data from Display Search suggests that the iPad mini is cannibalizing iPad sales, and that Apple won’t sell as many larger iPads this year as it anticipated. Generally speaking, self-cannibalism is something Cupertino’s okay with… but they may not like the taste in their mouths nearly as much this time.
Apple’s iPhone penetration strategy is to not release a lot of conflicting models, but to drop the price on previous iPhone models every time the new one comes out.
Right now, for example, Apple sells the iPhone 5 starting at $199 on contract, the iPhone 4S starting at $99 on contract, and the iPhone 4 with a two-year contract. In this way, Apple can sell an iPhone to anyone, regardless of their income level.
This strategy might be leading to negative repercussions for Apple, though, at least according to a new report, which suggests that Apple is proportionally selling considerably fewer iPhone 5 units during launch than they sold iPhone 4S and iPhone 4 units during their launch window.
Earlier in this day, we reported on a New York Times piece in which the paper claimed that Apple was using a variety of measure to avoid paying U.S. income tax. It turns out that the Times based key pieces of its information on a study that had been discredited two weeks prior.
The data used by the Times included a report by the Greenlining Institute, which made errors in computing Apple’s supposed tax rate at 9.8% for the 2011. The data used by the report effectively compared Apple’s 2011 profit with taxes paid by the company for profits in 2010 and drew unfounded conclusions as a result.