We all know Apple Inc. (NASDAQ:AAPL) has been struggling with iPad sales; lately the gadget hasn’t been the company’s star as it once was – the stardom period was short lived. With the latest 12-inch iPad Pro launch Apple was looking to change its fate and get some increased iPad sales. A few new features, lighter weight, a new color option and size were introduced with the hope to attract new customers and get the existing ones to switch to new iPads; however analysts are not too optimistic about the sales of the device.
Ming Chi Kuo of KGI Securities believes that iPad is going to witness terrible sales in 2015’s quarter that will end in March. According to Kuo Apple will only be able to sell about 9.8 million units of iPads in the first quarter, which will be a dip by 40% year-over-year. According to Kuo the main reason for these expected poor sales are no new applications in the tablet market, market’s saturation and its slow growth.
Kuo believes that the holiday season may see better iPad sales as compared to 2015’s first quarter. According to his forecast 21.5 million units of iPad will be sold during the holiday season, which is still not good news for Apple because it is a dip by 18% year-over-year.
Why should Apple worry about Kuo’s predictions? Because he has almost always been on target with his predictions regarding Apple products. With access to tech giant’s supply chain Kuo is in a great position to give forecasts regarding iPad sales.
As far as Apple’s iPad line is concerned, the tech giant and Tim Cook should definitely worry because the sales are on a constant decline; however does it mean Apple’s future is in jeopardy? The answer to this is no; at least not its short term future mainly because of Apple’s flagship iPhone smartphone, which continues to set sales records with its every updated new model. However Apple would want to change this trend soon and have another strong revenue generator besides its iPhone. The company wants to be seen as more than just an iPhone producing unit.
One of the major reasons for slow iPad sales is the Phablet market, which has played its part in replacing tablets to some extent. Another reason is the slow replacement cycle; iPad users do not change their tablets as quickly as they do their smartphones including iPhones. Yet another reason is the fact that all features that iPad comes with are first introduced in iPhone; therefore an average iPhone user does not see any need to buy an additional gadget that offers the same or even less features than iPhone – users simply do not see any point in spending money. Apple’s Chief Executive Officer Tim Cook says that upgrade cycle of iPads is still unknown because the company has only been producing iPads for the past four years.
iPad sales have taken a dip for three straight quarters now without any promise of going up in the near future. Kuo believes that he does not see any improvement in the tablet market even if the manufacturers reduce the prices, bring in upgrades and offer newer specifications.