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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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