Several analysts have discussed the possibility of the iPad mini cannibalizing sales of its full-sized predecessor, but could the new tablet gobble up another member of the Apple (NASDAQ:AAPL) family altogether? KGI Securities analyst Ming-Chi Kuo thinks so.
Kuo wrote in a research note to clients that with Apple adding the iPad mini to its sub-$400 product lineup, the company may cut back on investing on developing newer models of the iPod touch. Kuo added the media player may in fact have “entered the final stage of its product life cycle.”
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Apple upgraded the iPod touch last month with a larger 4-inch Retina display, a faster processor, and a snazzier camera, but sales are likely to be affected by the latest iPhone as well as the newly introduced iPad mini. The media payer has a starting price of $299, while the new, smaller tablet starts just a little higher at $329.
According to Apple Insider, Kuo has a proven track record in relation to Apple’s plans and rightly predicted the discontinuation of the 17-inch MacBook Pro earlier this year.
At the iPad mini announcement on Tuesday, Apple said the new iPod touch and iPod nano lines had together sold 3 million units in their first month of availability. However, Apple is fairly fond of citing strong sales of the iPod touch, which accounts for more than half of all iPods the company sells.
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