The iPad Mini was launched last month, although it is still called “iPad” and just looks like a smaller version of iPad, it is a totally new Apple product and indicating that Apple is entering small tablet market.

   Apple is pursuing a diversification growth strategy through the creation of iPad mini. Because it shares the same distribution resources, use the same information system and provide same application downloads, this is a related diversification opportunity.

   Its strategy is based on the fact of the shrinking PC market and the growing tablet market, and is led by the ongoing “bring-your-own-device” (BYOD) trend. Apple is considering pursuing new market segments of small tablet users. In education market, educators and students who prefer tablets to notebooks or PCs, will be targeted. And women, who may be more appreciated about its practical and convenient features and would be more interested in carrying this ultra-mobile “computer” in handbag and enjoying great personal entertaining experience everywhere. Tim Cook also described Chinese market as an “extremely exciting” one, which currently makes up 26% of Apple’s revenue. Research shows that Asian consumers love miniaturization and those small technical products are more popular in Asia. As a Chinese customer, I experienced the strong branding influence that Apple had on Chinese market. It gains great popularity and good word of mouth through its premium pricing, excellent design and innovative culture. In China, Apple is now definitely a premium brand that labels good quality and good taste. For most of the Apple fans, they will be the advocates to help promote the iPad mini to their family members, or buy it as a gift to them. For other customers who have not bought an Apple product before, they may like to try this newest Apple product at a lower cost and show themselves as fashionable and trendy people. As Oppenheimer said, the profit margin of iPad mini is far below the company average, it implicitly shows that Apple wants to target and eventually dominate the small tablet market.