Some cited that the price may be too high compared to rival products, while others said the smaller model may take potential customers away from the larger iPad.
Shares of some Asian Apple suppliers fell Wednesday, with market analysts asking how well the iPad Mini can compete against more affordable and smaller tablets such as Google Inc. GOOG +0.25%’s Nexus 7 and Amazon.com Inc. AMZN +0.23%’s Kindle Fire HD. Some analysts said if there is strong demand for the 7.9-inch iPad Mini, that could translate into weaker demand for the regular 9.7-inch iPad.
In Taiwan, shares of Pegratron Corp., which assembles the iPad Mini, dropped 3.4%. AU Optronics 2409.TW -1.70%, which supplies the iPad Mini’s screens, fell 1.7%. Grand Cathay Securities analyst Mars Hsu said it is unclear how popular the new tablet will be with a price tag of $329, given a sluggish global economy. Both the Nexus 7 and the Kindle Fire HD start at $199 in the U.S. Among Japanese electronic parts suppliers linked to Apple, Ibiden Co. fell 1.2% and Murata Manufacturing Co. 6981.OK 0.00% dropped 1.9%, while Taiyo Yuden lost 2%. Tachibana Securities analyst Kenichi Hirano said that investors are taking profits for now, while trying to figure out how popular the iPad Mini will be during the holiday season. Still HSBC HSBA.LN -0.26% analysts said in a report that the iPad Mini, despite its price tag, will likely enjoy solid sales thanks in part to demand in classrooms or from people who use it mainly as a book reader. The iPad Mini launch comes at a time when the global market for tablet computers is expanding rapidly while becoming more crowded with new competitors. Other than Google and Amazon, South Korea’s Samsung Electronics Co. 005930.SE -0.99% – Apple’s biggest rival in smartphones – and Microsoft Corp. MSFT +0.17%, with its Surface tablet to be released Friday in North America, are also trying to take on the iPad. In addition to the U.S. and Europe, the iPad Mini will go on sale in several Asian markets including Hong Kong, Singapore, South Korea, Japan and Australia on Nov. 2.
In Taiwan, shares of Pegratron Corp., which assembles the iPad Mini, dropped 3.4%. AU Optronics 2409.TW -1.70%, which supplies the iPad Mini’s screens, fell 1.7%. Grand Cathay Securities analyst Mars Hsu said it is unclear how popular the new tablet will be with a price tag of $329, given a sluggish global economy. Both the Nexus 7 and the Kindle Fire HD start at $199 in the U.S. Among Japanese electronic parts suppliers linked to Apple, Ibiden Co. fell 1.2% and Murata Manufacturing Co. 6981.OK 0.00% dropped 1.9%, while Taiyo Yuden lost 2%. Tachibana Securities analyst Kenichi Hirano said that investors are taking profits for now, while trying to figure out how popular the iPad Mini will be during the holiday season. Still HSBC HSBA.LN -0.26% analysts said in a report that the iPad Mini, despite its price tag, will likely enjoy solid sales thanks in part to demand in classrooms or from people who use it mainly as a book reader. The iPad Mini launch comes at a time when the global market for tablet computers is expanding rapidly while becoming more crowded with new competitors. Other than Google and Amazon, South Korea’s Samsung Electronics Co. 005930.SE -0.99% – Apple’s biggest rival in smartphones – and Microsoft Corp. MSFT +0.17%, with its Surface tablet to be released Friday in North America, are also trying to take on the iPad. In addition to the U.S. and Europe, the iPad Mini will go on sale in several Asian markets including Hong Kong, Singapore, South Korea, Japan and Australia on Nov. 2.
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