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What The Heck Happened To Apple's iPad Sales?
Business Insider ^ | 07/24/2013 | Henry Blodget

Posted on 07/24/2013 9:28:28 AM PDT by SeekAndFind

It wasn't long ago that Apple fans were slapping each other on the back and crowing about how, one day, Apple would be known as "the iPad company." The theory was that iPads were such a mega-hit new product category that iPad sales would continue to grow at astronomical rates until, eventually, they might even eclipse sales of the iPhone.

You don't hear that theory much anymore.

Why not?

Because, despite the launch of a cheaper iPad last year--the iPad Mini--the growth of Apple's iPad sales has screeched to a halt.

Because, despite the launch of a cheaper iPad last year--the iPad Mini--the growth of Apple's iPad sales has screeched to a halt.

In the June quarter, Apple's iPad sales dropped a startling 14% year over year, to only 15 million units.

Even after adjusting for channel inventory, iPad sales to consumers dropped 3% year over year.

This in a tablet market that is projected to grow about 50% this year.

So, what's going on?

Well, part of the issue is a tough comparison with last year: The iPad with a retina screen launched in the June quarter last year, and this triggered a nice jump in iPad sales in that quarter--to 17 million units from 12 million in the prior quarter. That set a high bar for this year's June quarter.

But that's not the whole problem.

The larger problem, arguably, is that Apple is trying to maintain premium pricing in a market in which competitors are increasingly selling high-quality iPad alternatives for significantly lower prices.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Computers/Internet
KEYWORDS: apple; ipad; sales
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1 posted on 07/24/2013 9:28:28 AM PDT by SeekAndFind
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To: SeekAndFind

I hasten to add that this is the same Henry Blodget who writes articles predicting the demise of the once great and powerful Microsoft.


2 posted on 07/24/2013 9:29:16 AM PDT by SeekAndFind
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To: SeekAndFind

Android happened. Much more user friendly IMHO.


3 posted on 07/24/2013 9:30:36 AM PDT by pingman (Trust a lib? Surely you jest!)
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To: SeekAndFind

The iPads that everyone bought 3-4 years ago are still good enough.


4 posted on 07/24/2013 9:32:32 AM PDT by dfwgator
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To: SeekAndFind

Only so many tablets can be sold. There is no way to keep the pace of 2011 and 2012, at least in the US. Those that want them have them. The 2, 3, and 4 models are not remarkably different for the typical consumer, so not much need to upgrade like a phone that gets warn out and out of date faster. Other than the retina display, a 2 is just about equal to the 4 for most people.

Competition is also much stronger. Much better alternatives than a year or two ago. MS people will go with Microsoft, kindle users will snap up the Fire, and Android has some really nice products out there now.


5 posted on 07/24/2013 9:33:34 AM PDT by ilgipper (Obama is proving that very bad ideas can be wrapped up in pretty words)
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To: SeekAndFind

People who need to WORK for a living don’t buy tablets

It is not going to be total saturation of the laptop or desktop marketplace

Microsoft is even feeling the heat after their DISASTER known as windows 8 turned out to be only tablet-friendly and infuriating for Laptop users who still needed to get work done and could not find anything anymore

I have had my beefs about Microsoft in the past- but Windows 8 was the first operating system that made me want to get vioolent. I had to buy a new computer to get some work done and it ONLY came with wondows 8, so I said OK lets try it- BIG MISTAKE

But.. here’s the good news, you can BUY an ‘upgrade’ that will let you uninstall it so you can BUY a previous version

grrrrrrrrrrr.....

If it was not for some hackers who came up with a GUI that resembles the previous start menu I would probably have driving to Seattle and torn Bill Gates’ nutsack off like a bathroom paper towel dispenser


6 posted on 07/24/2013 9:33:55 AM PDT by Mr. K (4 election)
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To: SeekAndFind

The fact that I can spend $200 on a Kindle Fire, root it, and install Jelly Bean on it tells me that Apple’s biggest problem is it’s lack of flexibility. My wife’s $200 Kindle Fire with Android is much more flexible and just as functional as my $600 iPad 4.


7 posted on 07/24/2013 9:34:18 AM PDT by rarestia (It's time to water the Tree of Liberty.)
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To: Mr. K

RE: windows 8 turned out to be only tablet-friendly and infuriating for Laptop users who still needed to get work done and could not find anything anymore

Windows 8.1 is supposed to solve the problem...


8 posted on 07/24/2013 9:34:37 AM PDT by SeekAndFind
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To: SeekAndFind

Have an Android tablet (Samsung) and an IPad. The Android is more user friendly and plays video, etc that IPad wont. Plus it has all the outs that IPad doesn’t and I can upgrade the memory or install memory cards with movies, etc on the Android that you can’t with IPad. Also, you can use a dongle for 3G connections to the wireless internet, whereas you have to get the IPad with the 3G feature, much more expensive.

IPad is just behind the times in terms of consumer wants.


9 posted on 07/24/2013 9:34:56 AM PDT by rstrahan
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To: SeekAndFind

I’d guess, and this is only that, that what you’re looking at there is a classic case of market saturation. No product could possibly maintain the sensation that the early iPads caused, and I’d venture another guess that its market demographic doesn’t churn quite as much as say, gamers after this month’s fastest new box. And there’s more competition than there was before. And the economy sucks. That sort of thing.


10 posted on 07/24/2013 9:35:37 AM PDT by Billthedrill
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To: dfwgator

exactly - Ive got a 1st gen and its just fine for what I need


11 posted on 07/24/2013 9:36:08 AM PDT by Revelation 911 (hump scratching n'er do well.....all strung out on chicken wings and venison jerky)
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To: SeekAndFind

The same Henry Blodget barred for life from the securities industry because of his willingness to lie to the public repeatedly in order to make a buck for himself? That Henry Blodget


12 posted on 07/24/2013 9:37:57 AM PDT by babble-on
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To: SeekAndFind

The same Henry Blodget barred for life from the securities industry because of his willingness to lie to the public repeatedly in order to make a buck for himself? That Henry Blodget


13 posted on 07/24/2013 9:37:57 AM PDT by babble-on
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To: babble-on

I have no idea why my computer double-posts so often. I am sorry. I only hit enter once.


14 posted on 07/24/2013 9:39:02 AM PDT by babble-on
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To: SeekAndFind

The reason is the same for the phone market.

The Samsung Galaxy Tablet and Phone are just better and cheaper.


15 posted on 07/24/2013 9:39:12 AM PDT by Azeem (There are four boxes to be used in the defense of liberty: soap, ballot, jury and ammo.)
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To: dfwgator

and the iPad Minis are not that much cheaper... imo...


16 posted on 07/24/2013 9:39:24 AM PDT by latina4dubya (when i have money i buy books... if i have anything left, i buy 6-inch heels and a bottle of wine...)
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To: SeekAndFind

When you can get a $90 Android tablet that does everything the iPad does you know they’re in trouble.


17 posted on 07/24/2013 9:41:10 AM PDT by Squawk 8888 (I'd give up chocolate but I'm no quitter)
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To: SeekAndFind

Apple stock is spiking $25 today


18 posted on 07/24/2013 9:41:47 AM PDT by montag813 (NO AMNESTY * ENFORCE THE LAW * http://StandWithArizona.com)
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To: SeekAndFind

Any of you folks have a Chromebook laptop ? Just purchased one for my mom & got a Samsung for $249. I love the thing. Very easy to use. Everything is done in the cloud. I might get one in place of a tablet that I was looking at.


19 posted on 07/24/2013 9:43:33 AM PDT by LongWayHome
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To: dfwgator

Your response is the most correct answer so far in the thread.


20 posted on 07/24/2013 9:44:18 AM PDT by The KG9 Kid (Demand Common Sense Nut Control.)
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To: SeekAndFind

“The larger problem, arguably, is that Apple is trying to maintain premium pricing in a market in which competitors are increasingly selling high-quality iPad alternatives for significantly lower prices.”

Essentially, that’s always been Apple’s business model. They have to keep releasing novel things, just to get a few years where there is no real competition, and then they can clean up. Once that window closes and people start releasing similar products that are a lot cheaper, instead of adjusting their prices downward to be competitive, Apple takes the sales losses.


21 posted on 07/24/2013 9:44:34 AM PDT by Boogieman
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To: Mr. K

You are saying what I have been saying to all these goober that think laptops and desktops are going away. If you do real work you need one. If you are a social media hog then a tablet is fine.


22 posted on 07/24/2013 9:49:11 AM PDT by Resolute Conservative
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To: LongWayHome

The cloud. Just another waste of time that will be exposed as crap and a boon for the government and thieves. Too bad businesses have bought into this mirror game to save a buck. You have absolutely no control over anything that is not on your system. Accounts, passwords, anything.


23 posted on 07/24/2013 9:51:32 AM PDT by Resolute Conservative
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To: dfwgator

My iPad is about that old and I really like it. It is my library now and I have over 200 books on it and keep adding when new books come out. My daughter gave me a new iPhone for my bd back in January and I am still using my old one. If it works, I don’t like to change. My iPad does everything I use a puter for. It is easy to use, portable, lightweight, etc.


24 posted on 07/24/2013 9:52:47 AM PDT by MamaB
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To: Resolute Conservative

It’s easy for older people to use....my mom’s bingo games & some of the local papers she reads can float in the clouds for all she cares:) Everything you do is known somewhere by someone these days as we have found out.


25 posted on 07/24/2013 9:55:58 AM PDT by LongWayHome
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To: SeekAndFind

OT question: I have an Ipad tablet but I am interested in upgrading to a droid based tablet. Trouble is, I’ve bout a bunch of movies on ITunes and I’m afraid I won’t be able to access or download them to a droid. Is this a legitimate concern?


26 posted on 07/24/2013 9:56:49 AM PDT by circlecity
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To: SeekAndFind

I love my iPad. It does everything I need and I’m certain that I will have it for awhile. I can’t be the only one. I think that has a lot to do with slow sales; the people that initially bought them see no reason to buy another so soon..


27 posted on 07/24/2013 9:59:05 AM PDT by cardinal4 (Skip impeachment and move straight to deportation..)
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To: SeekAndFind

This is the continuing story of the total collapse of the electronics industry.
Customers are demanding new devices faster than the industry can produce them.
Electronics manufactures spend all their energy chasing customers and never recover their development costs.

Electronics industries who have already died:
Home audio
Home video
Car audio

Ones which are starting to die:
Desktop computers
Laptop computers
Computer graphic cards

In danger of collapse do to no profit:
Smartphones
Tablets


28 posted on 07/24/2013 10:00:39 AM PDT by Zathras
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To: Mr. K

I use win8 on my desktop, laptop, phone, and surface - absolutely love it. Different? Yes. Bad? To the contrary. It moves the windows experience into the modern, multiple device world. Can’t beat having all of your work kept in sync across all devices.

My desktop isn’t touch and win8 is just as easy to use as win7 and XP for those that like to use a 15 year old technology.


29 posted on 07/24/2013 10:01:19 AM PDT by PaForBush
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The new Google Nexus 7 inch tablet is coming out at the end of the month, and it will have a high resolution display that is BETTER than Retina. Plus, it will cost only $229. I, for one, made the switch to Android with my phone, and I am pleased with my choice. Don’t get me wrong—I still love my iMac and my work-issued iPad gets a good workout. But, Apple is not bulletproof despite their outer appearance.


30 posted on 07/24/2013 10:06:35 AM PDT by Arkansas Toothpick
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To: Mr. K
I would probably have driving to Seattle and torn Bill Gates’ nutsack off like a bathroom paper towel dispenser

Dude! I'm still laughing. I feel your pain with regards to W8, but not as much as Bill would feel if you did as you suggest. LOL!!!

31 posted on 07/24/2013 10:13:57 AM PDT by Sergio (An object at rest cannot be stopped! - The Evil Midnight Bomber What Bombs at Midnight)
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To: SeekAndFind

Win 8 is applicable to touch technology hardware which wasn’t very prevalent last year. There are now a growing number of laptops and desktops with touch tech and using Win 8 on them is a breeze. It is very easy to intermix touch actions with mouse and keyboard actions with Win 8 on a touch laptop. When I do upgrade my laptop in another year or so it will be touch tech with Win 8 or its successor.


32 posted on 07/24/2013 10:18:17 AM PDT by RJS1950 (The democrats are the "enemies foreign and domestic" cited in the federal oath)
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To: SeekAndFind
My two cents, and I hate to say it, having worked for Apple in the past (freelance contract) and affiliated companies (remember Claris?)... When Apple founder Steve Jobs died, the heart and soul of the company vanished overnight. They will struggle along, but barring some miracle, I would not be surprised if Apple is gone or close to it in five year's time.
33 posted on 07/24/2013 10:20:17 AM PDT by Joe Brower (The "American People" are no longer capable of self-governance.)
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To: dfwgator

I have one of the original ipads and have seen absolutely no reason to upgrade.


34 posted on 07/24/2013 10:22:48 AM PDT by sheana
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To: Mr. K

Remind me to never make you mad.


35 posted on 07/24/2013 10:25:43 AM PDT by listenhillary (Courts, law enforcement, roads and national defense should be the extent of government)
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To: circlecity

All movies and TV shows rented or purchased from iTunes have digital rights management restrictions. Because Android doesn’t support Apple’s iTunes DRM, video from iTunes won’t work on Android.


36 posted on 07/24/2013 10:29:29 AM PDT by The KG9 Kid (Demand Common Sense Nut Control.)
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To: LongWayHome

I bought a Chrome laptop last Christmas for Mrs. R2.

Because she could not open, edit and view Microsoft Word - she won’t use it.

I love it. Its fast and easy. And no chance of viruses ever.


37 posted on 07/24/2013 10:36:45 AM PDT by Responsibility2nd (NO LIBS. This Means Liberals and (L)libertarians! Same Thing. NO LIBS!!)
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To: PaForBush

what kind of work do you do?

When I am trying to open a File Explorer to look at data out put fuile, run the Visual Studio debugger, run my program AND a Word document containing the specs, a tablet interface that makes those ‘apps’ run full-screen DESTROYS my productivity


38 posted on 07/24/2013 10:45:47 AM PDT by Mr. K (4 election)
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To: listenhillary

just guard your nutsack!!!


39 posted on 07/24/2013 10:47:09 AM PDT by Mr. K (4 election)
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To: Mr. K

especially when in the middle of all that an email comes in and takes over the whole screen

AND, when a 20 mimnute compile is going on and I want to play a little solitaire, AND watch the news AND Freep, it is FULL SCREEN APPS!!!

you can only do one at a time


40 posted on 07/24/2013 10:49:25 AM PDT by Mr. K (4 election)
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To: SeekAndFind

RE Broker in the field replying on my I-pad. Lots of good products on the market. As long as apple keeps developing the product I’ll buy. Using all apple across platforms, pad, desk, phone. Operations interchangeable and a lot of RE apps.

Used htc phone for two years with droid worked great. So enjoy the choices and have some fun.


41 posted on 07/24/2013 10:58:05 AM PDT by morphing libertarian
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To: SeekAndFind

Same thing that happens to all Apple products: they became appliances. Apple doesn’t deal well with any market that has become appliances, because their prime draw is being hip and cool, which also comes with a markup. Which is great when your product is the first popular entry in the field, it’s not so good when there’s mature competition that’s feature rich and cheap. While there will always be people who want to buy the fancy cool toaster there will always be more people who want to buy the non-ego stroking toaster that just toasts your bread for 1/2 the price.


42 posted on 07/24/2013 10:58:34 AM PDT by discostu (Go do the voodoo that you do so well.)
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To: dfwgator

“The iPads that everyone bought 3-4 years ago are still good enough.”

I still use my iPad 1.

Don’t need anything else.


43 posted on 07/24/2013 11:00:03 AM PDT by EQAndyBuzz (The reason we own guns is to protect ourselves from those wanting to take our guns from us.)
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To: Responsibility2nd

Cool. I got it for my mom who’s in her late 70s because of the reasons you stated. I’m having fun using it myself.


44 posted on 07/24/2013 11:06:18 AM PDT by LongWayHome
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To: Mr. K

Just as computers and displays were really getting to where multiple windows (small w) were a real productivity boon, along comes this full screen everything nonsense carried over from tablets to screw up the computer desktop. Thanks, Microsoft!


45 posted on 07/24/2013 11:22:10 AM PDT by FreedomPoster (Islam delenda est)
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To: SeekAndFind
What The Heck Happened To Apple's iPad Sales?

Apparently they didn't go over too well in Europe

46 posted on 07/24/2013 11:44:04 AM PDT by Liberty Valance (Keep a simple manner for a happy life :o)
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To: Mr. K
"Microsoft is even feeling the heat after their DISASTER known as windows 8 turned out to be only tablet-friendly and infuriating for Laptop users who still needed to get work done and could not find anything anymore"

+10 Had to buy my wife a new laptop and of course it only came with Win 8. Knew nothing about it, did not care, XP for me all the way.

What a joke this operating system is. Everything I laughed at the silly graphics oriented Mac systems was here in full bloom. I could not even figure out at first how to shut the damn thing down. Finally a bit of searching got me an add on that restores the Start function a bit.

Hard to believe they did this just because they have a hardon for the tablet market.

47 posted on 07/24/2013 12:06:27 PM PDT by doorgunner69
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To: SeekAndFind

“RE: windows 8 turned out to be only tablet-friendly and infuriating for Laptop users who still needed to get work done and could not find anything anymore

Windows 8.1 is supposed to solve the problem...”

That is sort of a decades old business model, but people have come to expect better.

I NEVER run out and get the latest new thing, having been trained by Microsoft to be wary.

Instead I wait for the new things to get market tested.

To date, 2 excellent Android smartphones (HTC Evo) have made me comfortable that an Android tablet would probably be just fine, too.


48 posted on 07/24/2013 12:16:34 PM PDT by truth_seeker
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To: Joe Brower

RE: They will struggle along, but barring some miracle, I would not be surprised if Apple is gone or close to it in five year’s time.

OK, as an Apple Stock Trader (not professionally), I am interested in understanding what’s wrong with the company since Steve Jobs died. What’s wrong with them now? Have they lost their innovative spirit? Are they resting on their laurels? Why do you say that?


49 posted on 07/24/2013 12:17:12 PM PDT by SeekAndFind
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To: FreedomPoster

and multiple displays

I work all day with 3 monitors on TWO computers (total 6) and control all of them with one keyboard and mouse

I could not get anything done if I had to use one full-screen app at a time.

It is like being in DOS again


50 posted on 07/24/2013 12:24:04 PM PDT by Mr. K (4 election)
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