Apple to Phase Out iPad 2 to Make Way for iPad Mini

Apple has been the catalyst for its own success. The tech giant has engaged in constant innovation over the years and develops its own technologies. That makes Apple one of the few self-sufficient companies in the industry. They rarely have to rely on external help to get something done, though they do have tie-ups with a large number of companies. With new products being launched every few months, it is expected that Apple will phase out the production of a few in order to make way for new ones.

This seems to be the case with Apple’s new iPad Mini. The iPad Mini is the smaller version of the best-selling tablet, which sells millions of unit every quarter. The smaller size enables iPad to price it lower as well, at $329, compared to the $399 they charge for iPad 2 and $499 for the original. Apple has recently stated that it expects to sell around 7 million Minis before the year end.

The iPad production and marketing is already stretched to capacity, as seen in Apple’s struggle to fill the iPhone 5’s orders. This could mean that they would have to stall the production of one of the previous generations of iPad to create room for the Mini version. Though there is no official word on the matter, it is being speculated in some quarters that the iPad 2 would be phased out in the near future.

In fact, some investors have already been notified about this. Apple has not yet said anything of the sort as they are completely occupied in planning the launch and release of the iPad Mini. The reason why the phasing out seems likely is that Apple has stated that it wants clearer product tiers. That would make things much easier for the tech giant.

Even at $399 a unit, the iPad 2 has been a strong seller for the company and continues to attract customers. Phasing out would mean completely halting production and dedicating resources to making the iPad Mini. However, the only obstacle the company could face in the near future is if the demand for the iPad Mini isn’t as high as expected.

Apple hasn’t experienced low sales since the launch of the first iPod. From there on, the company has charted an unprecedented course of success and now dominates the market in a way no one else has done. The upcoming holiday period is crucial for Apple to reassert its supremacy over the other companies. The iPad Mini could be the key factor playing in Apple’s favor.

Since most of Apple’s core customers have bought the iPad, it remains to be seen whether they show interest in the smaller version. The intention is to compete with other ‘smaller’ tablets in the market which are priced lower. In the end, Apple may end up creating competition for its own products. For now, look forward to the official unveiling of the iPad Mini which is scheduled for next week.

[Image via fourtitude]