While there was some debate over whether Apple would put a Retina display in the iPad Mini, the company is doing just that. However, previous reports of supply constraints for this new device appear to have legs, as Apple's only indication of availability is "later in November." It's quite likely that consumer demand will be quite concentrated on this specific model relative to other iPads in the lineup, which underscores a key challenge that Apple could face in the holiday quarter. Last year, Apple sold 22.9 million iPads in the holiday quarter.
The overall lineup looks quite strong as we head into the shopping season, although Apple's oldest devices are still priced higher than the latest and greatest from competitors such as Google and Amazon.com. The iPad Air looks as if it will help reinvigorate demand on the high end thanks to a design overhaul, and the pricing differential is also smaller since the Retina iPad Mini is priced at $399.
In this segment of Tech Teardown, Erin Kennedy discusses Apple's newest iPads with Evan Niu, CFA.
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The article The Biggest Challenge Apple Faces Next Quarter originally appeared on Fool.com.Erin Kennedy and Evan Niu, CFA, both own shares of Apple. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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