Demand for iPad Mini: Is Demand Rising for the Apple iPad mini, Falling for Full-Size Tablet?

Demand for iPad Mini: Is it possible that the full-size Apple Inc. (NASDAQ:AAPL) iPad is losing steam while the mini begins to increase in popularity? If you are to believe a recent report by Reuters, the answer is a resounding yes.

There are reports from multiple sources that Sharp Corp has been asked to slow down production of 9.7 inch screens for the full-size Apple iPad.

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Here is a brief overview from the Reuters article:

“Sharp’s iPad screen production line at its Kameyama plant in central Japan has fallen to the minimal level to keep the line running this month after a gradual slowdown began at the end of 2012 as Apple manages its inventory, the industry sources with knowledge of Sharp’s production plans told Reuters.”

As to be expected, there was no confirmation received from Sharp.

“Sharp spokeswoman Miyuki Nakayama said: We don’t disclose production levels.”

Reuters has attempted to contact officials with Apple Inc. (NASDAQ:AAPL) but have yet to receive comment.

As of right now, there is nothing solid that says this is the absolute truth. However, everything appears to be pointing in this direction.

While things appear to be slowing down for the full-size iPad, nothing could be further from the truth for the iPad mini.

The same article goes on to add:

“The sources didn’t say how much of the slowdown was due to seasonal changes in demand or consumers opting for the smaller iPad mini and were unable to characterize Apple’s overall tablet sales.”

“Macquarie Research has estimated that iPad shipments will tumble nearly 40 percent in the current quarter to about 8 million from about 13 million in the fourth quarter, although Apple’s total tablet shipments will show a much smaller decrease due to strong iPad mini sales.”

In other words, overall sales may not lag too far behind due to the increasingly popularity of the iPad mini.

Here is AppleInsider’s take on the news:

“While the sources reportedly characterized the changes as inventory management by Apple, some market watchers believe the new iPad mini may have had a significant effect on sales of the full-size iPad. Data from NPD DisplaySearch published in December indicated the iPad mini is already on pace to outsell the iPad.”

“A breakdown of iPad versus iPad mini sales for the holiday quarter is not likely forthcoming, however, as Apple does not detail sales of individual products.”

When it comes to iPad screen production, Sharp is not the only game in town. Apple Inc. (NASDAQ:AAPL) also has deals setup with LG Display Co Ltd and Samsung Display.

The question is: have these companies received the same request from Apple? Here is more from the Reuters article:

“Both LG Display and Samsung Display declined to comment. A source at Samsung Display, however, said there had not been any significant change in its panel business with Apple, which has been steadily reducing panel purchases from the South Korean firm.”

“A person who is familiar with the situation at LG Display said iPad screen production in the current quarter had fallen from the previous quarter ending in December, mainly due to weak seasonal demand that is typical after the busy year-end holiday sales period.”

What are your thoughts on this? Do you foresee the iPad mini taking over the full-size tablet in the near future?

Check back here for more updates on Demand for iPad Mini.

DISCLOSURE: I have no positions in any stock mentioned.

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