iPad 5 Production Could Delay iPad Mini 2

The next-generation full-size iPad might be just a few months away from release, but its production could delay the release of the iPad Mini 2. According to DigiTimes, the fifth-generation iPad could go into volume production sometime in July or August. Third quarter shipments are estimated to be at five to eight million units, indicating that the device will launch in late August or early September. This is positive news for those who were looking to upgrade from an older model, but the long-awaited iPad 5 could end up postponing the release of the next iPad Mini. DigiTimes' sources are split on the reasons why. Some say that Apple AAPL was disappointed by sales of the full-size iPad, especially the fourth-generation model. It's easy to see why -- during the last quarter, the cheaper (and less profitable) iPad Mini accounted for more than 60 percent of all iPads sold. To compensate for this discrepancy, and to encourage more customers to choose the full-size model, Taiwan-based supply chain makers believe that Apple will wait until November to release the second iPad Mini. Other sources have told DigiTimes that the iPad Mini 2 will actually be postponed because the supply chain will not be able to meet Apple's mass-production schedule. Even if that's true, few consumers may notice that a "delay" took place if the second-generation iPad Mini is released in October or November. The first-generation model did not arrive until the fourth quarter of 2012. Thus, consumers may not be expecting an upgrade to occur until later in the year. On the other hand, Apple did release both the iPad 4 and the iPad Mini on the same day last year. This was a necessary evil, however, as the company would have faced a sales, pricing and release date dilemma if it had chosen to postpone the fourth-generation iPad until March 2013. Since the fourth-generation model was more or less the same as the third-generation iPad (the processor speed received an upgrade but little else was changed), Apple could probably get away with upgrading that device as soon as possible. It probably won't be a huge seller -- especially if consumers choose to hold out for the iPad Mini 2. But there aren't as many risks in separating the product releases this year. Apple may also choose to separate the iPad 5 and iPad Mini 2 if they are greatly different from each other. For example, if the iPad 5 is thinner, lighter and contains a better battery (as rumored), it could become more appealing than the iPad Mini 2, which is only expected to be upgraded with a Retina Display and a faster processor -- two features already found within the third- and fourth-generation iPads. Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
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