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Interesting, would love to know some details here. How much differ and how much the ROI of having to manufacture, bigger more featured vs continuing a mini vers
by sergormo 2y ago
Interesting, would love to know some details here. How much differ and how much the ROI of having to manufacture, bigger more featured vs continuing a mini version.
I always questioned that the mini did not sell because of this effect that was worse than their other options. Consumer mind is easy in those fields. If I offer you 3 versions and the other two had "more" but in reality are the same.
Why would I choose over the small one, the big one has more, I'm buying less.
I think this strategy killed the mini sales, not the value of the format.
- brudgers 2y agoApple did not start making Mini's because of pent up demand. It started because of a specific opportunity to realize high profits in the context of Apple's other manufacturing and logistic operations. The manufacturing line for the Mini made Mini's until the supply of its widgets was exhausted. For example if a screen wafer has 1000mm diameter (I am just making this up). If the yield is 100 large iPad Pro screens and Apple can make 15 Mini screens from the left over area, the Mini screens have a very low cost basis. There is also a low output, so consumer demand doesn't need to be high for the Mini to be very profitable. Apple's product line is the result of an optimization problem that is solved across its entire product line not product by product. It doesn't matter that a product sells well. It matters that it sells right. Too much demand for the Mini means Apple stores don't have them in stock and that will make shoppers unhappy. I doubt Apple has been sending Mini's to the landfill.
- sergormo 2y agoThanks, really nice point