Jefferies has come out today to note that Apple (NASDAQ:AAPL) has cut its components orders again, something which famously injured the stock several weeks ago due to fears of declining iPhone demand. In this video, however, Motley Fool senior technology analyst Eric Bleeker tells investors that while sales of the larger iPad are slowing sharply, sales of its little brother, the iPad Mini, are on the rise. Eric speculates that while the Mini is a lower-margin device than the standard iPad, focusing more on the Mini for Apple was in keeping with its philosophy of aiming for customer satisfaction even if revenue takes a hit. Eric believes that while a transition from a focus on the iPad to the iPad Mini might compound margin contraction in the short term, in the long term it was the right thing to stay in line with consumer demand.
Eric Bleeker, CFA, has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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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