Here’s why Apple’s Retina iPad mini launch was so surprisingly quiet

2:00 PM

Apple surprised anxious fans around the world earlier this week when it quietly launched its new second-generation iPad mini tablet in the middle of the night with no warning. Those who had been eagerly awaiting the new high-definition mini slate scrambled to place their orders as soon as they woke up and read the news — and therein lies Apple’s logic in debuting the new Retina iPad mini so quietly. According to Internet Marketer Ed Dale, this was a carefully calculated move on Apple’s part, and a smart one as well.

Apple’s Retina iPad mini supply is ridiculously constrained. We all read the rumors that had been trickling out over the past few months, and this quiet launch solidifies them. According to a recent report from a very solid source, manufacturing difficulties will mean Apple only ships about 2.3 million Retina iPad mini tablets this quarter. Unfortunately for consumers, that will likely only cover a fraction of demand.

So, how does Apple ensure that its loudest, most dedicated fans procure their new iPad minis when supply is so short?

From Ed Dale:

By soft releasing the iPad Mini Retina, Apple achieved three crucial things.

Apple’s biggest fans got theirs first. Who knew about this first? The people who follow the Apple blogs and digerati. Judging by Twitter, this worked perfectly.The grey market queueing for the iPad Mini Retina was going to be immense. By going online the incredibly poor optics (the front of Apple lines, which attracts a lot of media, was full of people who were not fans but paid to be there) are mitigated.The last thing Apple wants is hundreds of customers turning up everyday to be dissappointed [sic] in a store which is meant to be a happy place — Apple does not want their stores to be associated with disappointment and frustration!

No further explanation needed.

Apple’s iPad mini with Retina display is available now — if you can find one — starting at $399 with Wi-Fi only and $539 with 4G LTE.

Apple’s Schiller: ‘Copied’ Samsung phones sully iPhone’s prestige

 

3:35 PM

Apple marketing boss Phil Schiller isn’t done raking Samsung over the coals just yet. Per The Wall Street Journal, Schiller told the jury in the latest Apple-Samsung patent trial that he was “shocked” when he first saw Samsung’s Galaxy line of smartphones because “they went and copied the iPhone.” This was particularly traumatizing for Schiller because he immediately worried that innocent consumers would start associating the iPhone with Samsung’s supposedly subpar plastic offerings.

“It weakens the view that the world has for Apple,” said Schiller, who went on to say that Samsung’s alleged copycat phones cause consumers to “question our innovation and design skills in a way that people never used to.” When a Samsung attorney held up a Samsung tablet during his cross examination, Schiller also remarked that the device “looks like an iPad.”

Apple is asking that Samsung pay $380 million on top of the $600 million it’s already paid as part of damages for allegedly infringing on Apple patents. A verdict in the case is expected next week.

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Samsung, Apple's top rival, may also be its savior

10:05 AM

Bad news, Apple fans: Retina iPad mini supply shortages might be even worse than we expected. In fact, the shortages might be even worse than Apple expected. Citing information from a DisplaySearch analyst, Nikkei on Friday reported that the display manufacturers charged with building 7.9-inch Retina displays for Apple’s new tiny tablet are having some yield issues. A report from earlier this week suggested that one of Apple’s partners — Sharp, which is said to have been awarded 40% of Apple’s new iPad mini display orders — is having serious yield issues due to unspecified manufacturing difficulties. Apple’s other Retina iPad mini display supplier is said to be LG Display, and it was reportedly not having the same troubles as Sharp. According to this new Nikkei report, however, LG Display is in fact having some yield issues and Apple has been forced to call upon Samsung to pick up the slack.

Samsung is seen as Apple’s potential savior as the company is well-equipped to handle the volume, but since we’re so late in the game Samsung reportedly won’t be able to ramp up mass production until early next year. As such, Apple’s second-generation iPad mini could be in seriously short supply until sometime in 2014.

Apple CEO Tim Cook admitted on Apple’s recent earnings call that supply of the new iPad mini with Retina display would be tight when the tablet launches later this month, but he said the company might be able to stock enough tablets to meet demand. If Nikkei’s report pans out, and if pent-up demand for a high-resolution iPad mini is as heavy as some industry watchers believe it to be, it looks like there are going to be plenty of upset Apple fans this holiday season.

According to Apple retail partner Target, the iPad mini will launch on Thursday, November 21st, though that date has not been confirmed by Apple.

Apple’s record-smashing iPhone sales seen as split evenly between 5s, 5c

 

6:15 PM

There have been a lot of different estimates about the breakdown of last weekend’s 9 million iPhone sales but KGI Securities analyst Ming-Chi Kuo thinks that it’s more likely that Apple actually sold more iPhone 5c models than iPhone 5s models. Per AppleInsider, Kuo has sent out a new research note claiming that Apple sold between 3.5 million and 4.5 million iPhone 5s models during its opening weekend while also selling between 4.5 million and 5.5 million iPhone 5c models. Kuo has established a pretty reliable track record when it comes to insider Apple information so it wouldn’t be surprising if his estimates were more on the mark than other analysts’ projections.

Apple’s share price may skid after Tuesday

3:50 PM

Before 2012, Apple’s share price fared notably well after the summer or early autumn iPhone announcements. Predictably, this led to investors bidding up the share price in the run-up to the 2012 announcement of the iPhone 5. This caused much grief as Apple peaked at $700 a few days after the iPhone 5 was announced and then started a long slide, all the way to $400. Now investors are feeling hopeful again, buying Apple ahead of Tuesday’s announcement. Apple is up more than 25% from June lows. This could be a problem.

One reason why Apple was so weak after the iPhone 5 announcement was that the phone wasn’t that exciting. It did not trigger as much upgrade buying as was anticipated and in the March quarter of 2013, Apple missed the iPhone volume consensus by a mile. On the other hand, after expectations had come crashing down, Apple beat iPhone volume consensus for the June quarter by a mile. In this sense, the share price of Apple is a carnival mirror that delivers the opposite of what people expect to see. Now that investor hopes are rising again, it will be tough for the company to beat expectations.

But there is also one very specific reason why Apple may have lost the ability to please the markets with its product announcements: The surprises are gone. Product details of new iPhones used to be tightly controlled and almost leak-proof. But now that early production volumes are so massive, it has become impossible to isolate every link in the supply chain. Hyper-detailed information about iPhone 5S and 5C has been leaking for months. This sets up a situation where investors will be perilously close to getting that “Is that all?” vibe very soon after the Tuesday event.

One particularly thorny challenge Apple faces this week is the pricing of the iPhone 5C. If the model is not priced below $400 without subsidies, it is inevitably going to look like a timid half measure. On the other hand, a rock bottom price would spook investors worried about margin erosion. It is hard to see what would be the magic price point that would satisfy both investors yearning for strong Asian market share gains and solid margins would be — maybe $375 in retail. It is unlikely that Apple is going to hit precisely that point, which could lead to some knee-jerk selling later this week.

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BREAKING -- It's official: Invitations go out for Apple’s September 10th iPhone 5S, iPhone 5C event

12:05 PM

The wait is almost over — for real this time. After a false alarm early Tuesday morning, Apple on Tuesday sent invitations to the media for a press conference in Cupertino on September 10th. At the event, Apple is expected to end months upon months of leaks, rumors and speculation by finally unveiling the flagship iPhone 5S and the brand new iPhone 5C.

Apple’s new iPhone 5S is expected to look a lot like the current iPhone 5, but it is said to feature a faster processor, an upgraded camera with a dual-LED flash and a major internal overhaul that will likely make room for a fingerprint scanner. It will also seemingly be available in two new colors: champagne gold and a new lighter gray color.

Also expected to debut next Tuesday is the mid-range iPhone 5C, which won’t feature cutting-edge specs but it should sport a price tag somewhere near $400 and a plastic case that comes at least five different colors. Apple is expected to offer the 5C for free on contract in many markets, and it will also help the company make inroads in developing markets where its flagship iPhones have been a bit to pricey to compete with bargain-bin Android phones and Nokia’s Asha lineup.

Apple will be announcing iOS 7 launch timing as well during its press conference in Cupertino next week, and we might also see one or two surprises. Be sure to tune in to BGR next Tuesday, where we’ll be covering all the latest iPhone 5S, iPhone 5C and iOS 7 news as it breaks.

Here is an image of Apple’s event invitation, which was published by The Loop.

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