The Iphone Air Won’t Kill The Ipad

There’s something worthwhile in this. I’m not sure if this piece will have the facts that you’re looking for.

An iPad is just an iPhone with a larger, higher-resolution screen and a larger chassis. For cellular models, this is where the differences largely end, although for the Wi-Fi only version, Apple saves about $30 on the bill of materials. Further, even though the iPad simply has more stuff to it, the cheapest off-contract, latest-generation iPhone runs users $650, while the cheapest iPad Air sells for $500, and the cheapest iPad mini with Retina Display runs for $399. Clearly, there’s much more margin to be had in selling an iPhone — particularly through a carrier — than an iPad. The worst case: iPhone Air completely eliminates an iPad sale The big fear and the worst-case scenario is that the sale of something like an iPhone Air — which, given the current Samsung (NASDAQOTH: SSNLF ) Galaxy Note 3 prices should start at $299 with a 2-year contract (implying an unsubsidized price of $749 given the current iPhone 5s pricing). This means for what is likely to be at worst a slightly larger bill-of-materials than the iPad mini with Retina Display, Apple is making significantly more margin per unit. The worst case, then, is that Apple loses a flagship iPhone sale ($649) plus an iPad mini with Retina ($399) for a $749 hypothetical iPhone Air. Do note, however, that if users are going to really go with “one device to rule them all,” then they’re probably not going to buy the minimalist 16 GB model for $749 and would instead likely be willing to pay the $100-$200 premium to get 32GB to 64GB models.
Initially found at: http://www.fool.com/investing/general/2014/01/14/the-iphone-air-wont-kill-the-ipad.aspx

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