Predictions that Apple's new iPad mini would cannibalize sales of the full-sized iPad seem to be coming true, according to one analyst.
Based on information received from supply chain sources, Sterne Agee analyst Shaw Wu is lowering his iPad sales estimates for this quarter from 25 million to a more conservative 23.5 million.
"iPad mini demand remains strong," wrote Wu in a research note, "but shipments appear limited by supply constraints. On the other hand, build plans for iPad appear to have been reduced likely due to some cannibalization by iPad mini."
When it comes to the iPhone 5, Wu is more optimistic, raising sales estimates from 47.3 million to 47.5 million. His rationale for this is based on improving yields and availability.
Earlier this month Wu reduced the Mac outlook from 5.1 million to 5.0 million. It's not a massive trim, but this is below the analyst consensus for Mac sales, which is in the region of 5.2-5.3 million.
Wu also lowered his revenue estimate for this quarter slightly, down to $54.4 billion from $54.6 billion, while at the same time raised gross margin from 38.5 percent to 38.7 percent, and keeping earnings per share unchanged at $13.70.