Analyst: No Black Friday iPad Mini Discount Indicates Strong Demand

Chalk this up to another analyst pointing out the (rather) obvious, but it is posisble that the lack of any discount for the new iPad mini could be due to the sheer demand of the device. Following that line of logic, as Wells Fargo analyst Maynard Um did, leads to the conclusion that Apple isn’t offering any sort of discount because it doesn’t need to. People are likely buying every iPad mini Apple can make, and lowering the cost would increase demand beyond what Apple can currently cope with.

Of course, it has already been widely reported that Apple’s margin on the iPad mini is less than the level that they historically have preferred to maintain. With these lower profit margins, it would make less business sense to slash the price down just to achieve higher demand. Apple would be leaving a certain percentage of money on the table, and that simply isn’t necessary at this time.

[Barron's]

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