Apple Inc. (AAPL): Was This Steve Jobs’ Biggest Mistake?

In December, the researcher estimated that Then Apple Inc. (NASDAQ:AAPL) was planning to ship 100 million total iPad units in 2013, a figure that’s now been reduced to 88 million units. Since DisplaySearch keeps its fingers on the broader display industry’s pulse, this estimate may be more meaningful than reported order activity at any single supplier.

Sources: Apple and NPD DisplaySearch.

Possible reduction notwithstanding, shipping 88 million tablets in 2013 would still be quite a respectable feat and would represent 34% unit growth from the 65.7 million iPads sold in 2012. The shift in product mix will inevitably have downward pressure on average selling prices, a trend that began last quarter.

Initial estimates also showed that the iPad Mini carried a higher hardware gross margin than the larger model, which is just another reason investors shouldn’t be overly concerned with cannibalization. Time and time again, Apple has reiterated its philosophy that it doesn’t worry about cannibalism. Tim Cook recently expressed his belief that if a company uses that fear as a major consideration in what products to pursue, it signals the beginning of the end. So long as Apple can continue churning out products that consumers line up for, the rest will take care of itself.

Steve Jobs’ biggest mistake?
DisplaySearch estimates that the total panel market will jump from 160 million in 2012 to 254 million in 2013, with more than half of those displays going toward smaller devices. There are numerous examples of Steve Jobs’ being wrong, but this one might have been his biggest mistake.

At this point, investors can’t help wondering what could have been like if Apple had started with the 7.9-inch form factor and expanded up. Rivals would have never even had a chance.

The article Was This Steve Jobs’ Biggest Mistake? originally appeared on Fool.com and is written by Evan Niu.

Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Amazon.com and Apple and owns shares of Amazon.com, Apple, and Microsoft.

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