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As you already know, the iPad mini can now be pre-ordered from Apple’s online store. This
tablet comes with Wi-Fi only or Wi-Fi + cellular variants.
however, many are asking if the launch of an iPad Mini would make sense as it would
cannibalize Apple’s 9.7-inch iPad that is already selling pretty well.
Definition of ‘Market Cannibalization’
The negative impact of a company’s new product on the sales performance of its
existing related products. Market cannibalization refers to a situation where a new
product “eats” up the sales and demand of an existing product. This can negatively
affect both the sales volume and market share of the existing product. Market
cannibalization occurs when a new product intrudes on the existing market for the older
product, rather than expanding the company’s market base. Rather than appealing to a
new segment of the market and increasing market share, the new product appeals to
the company’s current market, resulting in reduced sales and market share for the
existing product.
Also called corporate cannibalism. [Source Investopia]
And that’s definitely a possibility. But one thing that Apple has learned is to actually not be
afraid to do this.
“We have learned over the years not to worry about cannibalization of our own product.
It’s much better for us to do that than for somebody else to do it.
4/5
5. ~ Chief executive Tim Cook
[ Screenshot
taken from Apple]
bing_news
5/5
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