A Historical Insight into the Revival of Mini Tablets: The Journey from Decline to Rebirth
Last October, after a three-year hiatus, the iPad mini made a highly anticipated return, featuring the new A17 Pro chip. In June this year, Xiaomi re-entered the mini tablet market with the Redmi K Pad, and in September, Huawei launched the MatePad Mini, marking its return after a six-year absence. Mini tablets, once seemingly phased out, are now seeing a resurgence. The iPad mini played a pivotal role in their revival.
The Birth of Mini Tablets
In September 2010, Samsung released the Galaxy Tab 7.0, its first tablet with a 7-inch display, paving the way for the mini tablet market. In contrast to the 9.7-inch iPad, the Galaxy Tab 7.0 was more portable and easier to hold, even with one hand. Though its sales were modest, it piqued the interest of other companies. Google and Amazon followed suit with their own mini tablets, offering value and learning from Samsung's pricing missteps.
By 2012, Mini tablets from Google, Amazon, and Barnes & Noble had sold over 15 million units, grabbing Apple's attention. In response, Apple launched the 7.9-inch iPad mini in October 2012. Apple’s Phil Schiller criticized mini tablets, claiming they'd failed, but the iPad mini sold 10 million units in its first quarter, far outpacing the Nexus 7, which sold between 4.5 to 4.8 million units annually.
The iPad mini’s success established Apple’s dominance in the mini tablet market. In 2013, the iPad mini 2 aligned with the iPad Air, offering a rare affordable option for Apple and becoming the best-selling single tablet model. Apple maintained a pricing anchor of $399, setting the standard for the industry.
Price Wars and Vertical Integration
Apple's self-developed processors and software provided a significant advantage in cost management. The iPad mini, equipped with the A5 chip, had a lower manufacturing cost compared to competitors like the Nexus 7, which used Nvidia’s Tegra 3. This vertical integration allowed Apple to maintain a 40% profit margin on the iPad mini, while the Nexus 7 barely exceeded 25%. The Android camp, struggling with lower margins, could either maintain the same component specs as flagship phones—driving prices above $399—or lower prices at the cost of performance. As a result, mini Android tablets struggled to compete.
With the iPad mini's market dominance, most Android brands exited the mini tablet space, leaving only high-end models from Samsung, which continued to release tablets priced near $399.
2015 iPad sales performance
The Decline and Revival of Mini Tablets
In 2016, Samsung discontinued its mini tablets, and Apple followed suit, relegating the iPad mini to the background. But in 2019, Apple released the iPad mini 5, which retained the Home button and 3.5mm headphone jack, signaling an attempt at stock clearance. However, the 2021 release of the iPad mini 6 marked a major shift, with an upgraded 8.3-inch Liquid Retina display and a price increase to $499, raising the bar for mini tablets.
The Android Comeback: Opportunities and Flexibility
The price increase for the iPad mini created space for Android manufacturers to re-enter the market. Due to the lack of vertical integration, Android devices struggled to maintain healthy margins while competing with Apple’s offerings. However, with the loosening of Apple’s pricing anchor, Android brands now have more room to innovate and develop higher-performance tablets. Huawei’s MatePad Mini features flagship-level processors and large batteries, positioning itself as a premium alternative to the iPad mini.
The Role of Gaming in the Mini Tablet Revival
The surge in mobile gaming, particularly with titles like Genshin Impact, has provided a significant boost to mini tablets. With processors improving and gaming becoming more demanding, mini tablets offer an ideal balance of portability, performance, and battery life for mobile gaming. Xiaomi’s K Pad and the iPad mini 6 are marketed as "gaming tablets," distinguishing them from larger iPads, which are more productivity-focused.
Foldable phones, while offering some competition, are still priced far above the $399-$499 range, making mini tablets the more practical choice for consumers. For manufacturers, mini tablets offer a profitable niche, especially when compared to the slim margins of smartphones.
