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As iPad sales decline, Apple remains bullish on future of tablet market

post #1 of 59
Thread Starter 
Though iPad sales have fallen two quarters in a row, Apple Chief Executive Tim Cook said on Tuesday he isn't concerned, and teased that his company is working on new innovations that, along with the newly announced IBM partnership, could help reinvigorate growth.

iPad mini


Speaking to analysts and members of the media on Tuesday, Cook said that while iPad sales met Apple's internal expectations, he realized they were short of what many investors were hoping. Apple reported sales of 13.28 million iPads for the June quarter, a total that was off 9.2 percent year over year.

Cook said there were a number of reasons that iPad sales were down, including channel reduction and market softness in certain parts of the world, including the U.S. and Western Europe.

But the Apple CEO characterized himself as "very bullish about the future of the tablet market." Unsurprisingly, he didn't say where Apple might be looking to take the market, but he did tease that the company is planning innovations in hardware, software and services.

Cook also cited statistics that show Apple dominating the tablet market, and the fact that more than half of iPad buyers are purchasing their first tablet.

He also touted his company's newly announced partnership with IBM, which will see Big Blue helping to deploy and support iOS devices in the workplace. Combined with Apple's "legendary ease of use," he sees great opportunities for iPad growth in the enterprise.

"What's important to us is that customers are enjoying their iPads and using them heavily," Cook said.
post #2 of 59
Post concern for Apple's future below. 1wink.gif

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

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post #3 of 59

Is the drop in sales being picked up by other manufacturers, or does it seem to be a decline in the overall tablet market itself?

post #4 of 59

Its pretty clear why the sales decline is happening, since more than half of buyers are new to the iPad.   People don't upgrade iPads much - the old ones are fine.

I have an iPad 2, and see no reason to get a newer one.

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post #5 of 59
Quote:
Originally Posted by DarkLite View Post

Is the drop in sales being picked up by other manufacturers, or does it seem to be a decline in the overall tablet market itself?

The tablet category itself has been in recent decline according to stats. I have some ideas why
http://forums.appleinsider.com/t/181515/apple-falls-short-of-expectations-with-7-7b-in-profit-on-sales-of-35-2m-iphones-13-3m-ipads/40#post_2567715

http://www.pcworld.com/article/2452189/tablet-sales-dip-as-market-matures.html
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post #6 of 59
Originally Posted by e1618978 View Post
Its pretty clear why the sales decline is happening, since more than half of buyers are new to the iPad.   People don't upgrade iPads much - the old ones are fine.


I have an iPad 2, and see no reason to get a newer one.


I have a first gen. Don’t plan to upgrade until the 13/15” is released.

post #7 of 59
The Retina display is more than a reason to upgrade from a first gen or iPad 2, IMO.

Still, when the iPad 2 gets the axe sales will spike again. They should take the 3 out at the same time, it's not much faster.

Too many Apple products to list...Long on AAPL, so take what I say with a bucket of salt.

You are only relevant...if your customers love you.

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Too many Apple products to list...Long on AAPL, so take what I say with a bucket of salt.

You are only relevant...if your customers love you.

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post #8 of 59
Anecdotally, I bought a 128 GB iPad Air, my first tablet, last year. It primarily collects dust. iPad excels at presentations and as an aggregator of all my media files, but I prefer working on my iMac or surfing the web on my MB air. Obviously your mileage may vary and some people are hooked on tablets but I can personally understand why table sales are waning.
post #9 of 59
Quote:
Originally Posted by TheWhiteFalcon View Post

The Retina display is more than a reason to upgrade from a first gen or iPad 2, IMO.

But after the iPad 3 even the iPad Air, nice as it is, was not tempting enough to upgrade. Main reason was the lack of sufficent RAM.

post #10 of 59
Comparatively, the Y/Y numbers are solid, exception iPad sales. Nice setup going into Q4 with a transition into new product life cycles and new categories about to launch.

All in all, the nose of this plane keeps pointing up and the Tim Cook era is really just starting.

Happy Investor!
post #11 of 59
Quote:
Originally Posted by MJ Web View Post

Anecdotally, I bought a 128 GB iPad Air, my first tablet, last year. It primarily collects dust. iPad excels at presentations and as an aggregator of all my media files, but I prefer working on my iMac or surfing the web on my MB air. Obviously your mileage may vary and some people are hooked on tablets but I can personally understand why table sales are waning.

Reverse is true for me: I use the Mac for work, and iPad for web surfing, shopping, reading ebooks, listening to music, playback of itunes media, streaming Netflix, journal writing, and playing iOS games.

"Apple should pull the plug on the iPhone."

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post #12 of 59
Quote:
Originally Posted by TheWhiteFalcon View Post

The Retina display is more than a reason to upgrade from a first gen or iPad 2, IMO.

Still, when the iPad 2 gets the axe sales will spike again. They should take the 3 out at the same time, it's not much faster.

The 3 was axed already;-) It didn't live past the 4 (lightning).   My guess is the 3 will be 'unsupported' at the same time the 2 is.

 

iPad sales will 're-ramp' when

1) TouchID is embedded (turn off to lock, press to unlock... a key requirement for corporate types)

2) a 12" or larger is shipped to meet corp/professional customer needs (those 14-15" laptops)

3) in about 3 years, when all these schools/colleges/students matriculate their devices into next equipment.

4) the next big network speed bump comes into play (LTE2, AC becomes common place)

5) Continuity between mac and phone and pad become ubiquitous...  Where my 'state' is iclouded to all iDevices automagically.  (Why carry that laptop... everything I need is already on my iPad?)

6) home automation has its 'aha' moment  (I'm seeing it now... I'm redoing my security system, and instead of 5 security panels, I'm putting in one master, and it's an iOS app everywhere else... my wife... she'll want an iPad dedicated to the task.

 

at that point, people will have one iPad apiece, vs the 1 iPad per home.

 

I do think the life span of a tablet will be 5 years, given the  no moving parts construction compared to a laptop (typically a 3(pc)-5(macbook) year lifespan), and the generally be treated much more nicely than a phone. 

 

I also think that when you spend $500+ on something, you milk it a bit longer than a $199 device.  And coupled with the 'I don't want to learn another OS' people wedged into Window XP/7/8, it will take MS Surface's abject failure before they give up their Dell laptops.

post #13 of 59
Quote:
Originally Posted by Suddenly Newton View Post

Reverse is true for me: I use the Mac for work, and iPad for web surfing, shopping, reading ebooks, listening to music, playback of itunes media, streaming Netflix, journal writing, and playing iOS games.

Same. My MBA is just for when I need a keyboard, mainly with word processing. Or if I'm doing family history research, that works better on a larger screen. I keep my journal on my good old eMate 300.
Edited by TheWhiteFalcon - 7/22/14 at 3:58pm

Too many Apple products to list...Long on AAPL, so take what I say with a bucket of salt.

You are only relevant...if your customers love you.

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Too many Apple products to list...Long on AAPL, so take what I say with a bucket of salt.

You are only relevant...if your customers love you.

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post #14 of 59

My wife had an iPad 1st gen, and only recently updated to the current model.  There wasn't enough useful capability (for her) added in each gen to be worth updating.  The old one slowing down on web browsing, stuck on IOS 5, and increasing incompatibility were stronger factors than a camera or other new capabilities.  So I expect it to be quite a while before we will be buying a new model.

post #15 of 59
IMO they should no longer separate Tablets with Phones. With the rise of the Apple 5.5 phone the lines are blured.

They should just report total iPhones/iPads much like they combined Mac sales (Macbook/iMac)

They should report only total Mac's sold and total iOS devices. No reason to separate iPads. Literally no else reports this data.
Edited by sog35 - 7/22/14 at 4:44pm
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post #16 of 59
Originally Posted by sog35 View Post
With the rise of the Apple 5.5 phone the lines are blured.


You mean the nonexistent thing that isn’t in any way a non-portable computing device?

post #17 of 59
Quote:
Originally Posted by Tallest Skil View Post
 


I have a first gen. Don’t plan to upgrade until the 13/15” is released.

 

Our first gen is finally almost toast. It really struggles on a lot of websites and apps lately. We're waiting to see what comes out in the fall.

Hmmmmmm...
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Hmmmmmm...
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post #18 of 59

Has anyone done a study linking the device and the OS?  I wonder if the newest iPad sales are lower due to the installed OS.

 

 

People aren't buying the device completely separately from the OS, so I assume there is some link.

 

I have posted many times here about how I personally dislike iOS7 and can say for a fact that iOS7 kept me from buying an iPad Air.  If the Air ran iOS6 I would buy it.  Ditto for the wife.  That is two sales that were determined not by the device itself but by the OS.  If it's just the two of us, Apple won't care.  If it is a larger number, they will need to start considering things.

 

I am primarily looking at the visual, UI appearance of the OS that for me make the OS hard to use (I do have it installed on an iPad mini, now a paper weight), not necessarily new functions that I would not have if it ran 6.

 

 

iPad 1 & iPad 3, not interested in iOS7 and therefore any device that requires it.  iOS 8, well, I don't think they improved the appearance much so I doubt I will jump, even though there are some functions obviously that would make my life a lot easier.  If I can't get past the UI, an omniscient machine for just $2 wouldn't sell me.


Edited by Bergermeister - 7/22/14 at 7:06pm

 

Your = the possessive of you, as in, "Your name is Tom, right?" or "What is your name?"

 

You're = a contraction of YOU + ARE as in, "You are right" --> "You're right."

 

 

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Your = the possessive of you, as in, "Your name is Tom, right?" or "What is your name?"

 

You're = a contraction of YOU + ARE as in, "You are right" --> "You're right."

 

 

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post #19 of 59
Quote:
Originally Posted by e1618978 View Post

Its pretty clear why the sales decline is happening, since more than half of buyers are new to the iPad.   People don't upgrade iPads much - the old ones are fine.


I have an iPad 2, and see no reason to get a newer one.

There would be good reason if Apple addressed a few short comings with respect to iPad. I'm still rocking iPad 3 waiting for Apple to pull head from ass and deliver a proper update.
post #20 of 59
Quote:
Originally Posted by wizard69 View Post


There would be good reason if Apple addressed a few short comings with respect to iPad. I'm still rocking iPad 3 waiting for Apple to pull head from ass and deliver a proper update.

 

iPad 3 is great.  What updates would you consider "proper"?

 

Your = the possessive of you, as in, "Your name is Tom, right?" or "What is your name?"

 

You're = a contraction of YOU + ARE as in, "You are right" --> "You're right."

 

 

Reply

 

Your = the possessive of you, as in, "Your name is Tom, right?" or "What is your name?"

 

You're = a contraction of YOU + ARE as in, "You are right" --> "You're right."

 

 

Reply
post #21 of 59
Quote:
Originally Posted by wizard69 View Post


There would be good reason if Apple addressed a few short comings with respect to iPad. I'm still rocking iPad 3 waiting for Apple to pull head from ass and deliver a proper update.

 

Get an iPad Air if you want a newer model...but you're really just trolling anyway.

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GOA

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Proud AAPL stock owner.

 

GOA

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post #22 of 59
Quote:
Originally Posted by Tallest Skil View Post


You mean the nonexistent thing that isn’t in any way a non-portable computing device?

Where there is smoke, there is fire.

This is just like the Beats deal.
Its happening, deal with it.
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post #23 of 59
Even heavy iPad users such a myself do not have a super compelling reason to upgrade yet.

Sure you can tweak or add a few features but at the end of the day, it is a screen to run apps. Jobs' vision has been near perfectly executed.
The minimalist design means that there isn't a significant difference in appearance between models. Shallow, but no doubt a true driver of many upgrades for things like iPods and phones.
And an iPad 2 can still run a lot of apps that an iPad air can run.

If Apple was really only market driven, they would do two things, firstly make new models obviously visually different from previous models, and add a stack more ram and encourage app builders to use it. Thus forcing people onto the upgrade path if they want to keep using apps.

As you can see, I can do evil.
Instead, they have effectively made the device itself invisible (thus long life), and encourage app builders to maximise the efficiency of RAM use. Good, good Apple.

Of course the other thing they could do is more actively peruse PC replacement. Power, light weight, space, play very nicely in corporate environments, and dare I say it, access to file directories.
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post #24 of 59
Quote:
Originally Posted by TheOtherGeoff View Post

The 3 was axed already;-) It didn't live past the 4 (lightning).   My guess is the 3 will be 'unsupported' at the same time the 2 is.

iPad sales will 're-ramp' when
1) TouchID is embedded (turn off to lock, press to unlock... a key requirement for corporate types)
2) a 12" or larger is shipped to meet corp/professional customer needs (those 14-15" laptops)

3) in about 3 years, when all these schools/colleges/students matriculate their devices into next equipment.
4) the next big network speed bump comes into play (LTE2, AC becomes common place)
5) Continuity between mac and phone and pad become ubiquitous...  Where my 'state' is iclouded to all iDevices automagically.  (Why carry that laptop... everything I need is already on my iPad?)
6) home automation has its 'aha' moment  (I'm seeing it now... I'm redoing my security system, and instead of 5 security panels, I'm putting in one master, and it's an iOS app everywhere else... my wife... she'll want an iPad dedicated to the task.

at that point, people will have one iPad apiece, vs the 1 iPad per home.

I do think the life span of a tablet will be 5 years, given the  no moving parts construction compared to a laptop (typically a 3(pc)-5(macbook) year lifespan), and the generally be treated much more nicely than a phone. 

I also think that when you spend $500+ on something, you milk it a bit longer than a $199 device.  And coupled with the 'I don't want to learn another OS' people wedged into Window XP/7/8, it will take MS Surface's abject failure before they give up their Dell laptops.

Do you really think that 12" ARM tablet can replace 15" laptop? I'm not trying to provoke, it's honest question. I'd like to hear your reasoning.

I know that ARM tablets are getting more and more powerful... but it is not like laptops are standing still, or their usage scenarios.

Most of our corporate customers are using laptops nowadays on docking stations, with 2 screens attached. Laptop's native screen is used only when away from the office desk. And then, as requirement for increased efficiency ever grows, our users are running more and more applications at once. We were testing Lenovo ThinkPad Tablet 2 for our sales, and even with full multitasking and docking station, memory (and to some degree performance) limitations were just in a way as soon as things would become a bit more frantic. Couple of Office apps, ConnectWise, ITQuoter, one browser at least... frequent access to PDFs... all requirements for sales person... would quickly render TPTablet's 2GB of RAM a bottleneck, even with Flash storage. Granted, our customers don't run things like ITQuoter, but many of them run some sort of specific software on top of usual Office stuff.

The only tablet that worked so far satisfactorily in our environment was Surface Pro class device, but we all know that it is laptop in disguise, not a proper tablet-tablet.
post #25 of 59

Basically, Apple was waiting until iPad sales stalled to do a real iPad upgrade


Edited by AdonisSMU - 7/22/14 at 9:56pm
post #26 of 59
Quote:
Originally Posted by e1618978 View Post

Its pretty clear why the sales decline is happening, since more than half of buyers are new to the iPad.   People don't upgrade iPads much - the old ones are fine.


I have an iPad 2, and see no reason to get a newer one.
Indeed. I have a MacBook Air which I use daily but my wife convinced me we should shell out for an iPad Mini when they were on sale (well, it didn't take very much convincing, honestly). Now we use it just as much as the MacBook, just for different things. The thing is, as we are all Apple fans here, we have come to enjoy their quality products for much longer than the industry average. However, they always seem to find ways to entice us to upgrade...
post #27 of 59
Quote:
Originally Posted by Tallest Skil View Post
 


I have a first gen. Don’t plan to upgrade until the 13/15” is released.


Hope you're patient.  You'll be waiting a long time, if not forever for an iPad that size.

post #28 of 59
Originally Posted by sog35 View Post
Where there is smoke, there is fire.

This is just like the Beats deal.
Its happening, deal with it.

 

Yeah, no, try again. I guess you sure showed me regarding the 2.5” iPhone, Apple HDTV, and headless tower Mac!

 

Originally Posted by CanukStorm View Post
Hope you're patient.  You'll be waiting a long time, if not forever for an iPad that size.

 

Why? Laptops are dead. Apple won’t be selling them much longer. A workhorse tablet is the inevitable future.

post #29 of 59
Quote:
Originally Posted by Tallest Skil View Post
 

 

Yeah, no, try again. I guess you sure showed me regarding the 2.5” iPhone, Apple HDTV, and headless tower Mac!

 

 

Why? Laptops are dead. Apple won’t be selling them much longer. A workhorse tablet is the inevitable future.

If what you say is true, then what are the all the users that need to run VM's, do development work, run Photoshop, etc., going to do? They'll still need Intel-based Macs to run those workhorse-type software. Are they going to stop buying Macbooks because Apple won't be selling them much longer?

 

These workhorse tablets might be great for a certain segment (ie: students and mobile office workers) but not all segments.

post #30 of 59
Originally Posted by CanukStorm View Post
If what you say is true, then what are the all the users that need to run VM's, do development work, run Photoshop, etc., going to do?

 

Run them on tablets or the multitouch desktop to compliment it. Why is this difficult to comprehend?

 
They’ll still need Intel-based Macs...

 

1. Who said anything about not using Intel?
2. Why is Intel needed?

 
Are they going to stop buying Macbooks because Apple won't be selling them much longer?

 

I can’t imagine someone being able to buy something not being sold, but hey. :p

post #31 of 59
Quote:
Originally Posted by Gangster View Post
 

If what you say is true, then what are the all the users that need to run Vim's, do development work, run Photo shop, etc., going to do? They'll still need Intel-based Macs to run those workhorse-type software. Are they going to stop buying Mac books because Apple won't be selling them much longer?

 

These workhorse tablets might be great for a certain segment (IE: students and mobile office workers) but not all segments.

Maybe Apple will finally release an OSX based tablet. gosh knows I have been waiting for one forever now.  Until then though I have a Surface Pro 3 for things like Photoshop and Abelton Live, MacBook Air for development, iPad for the many great music apps and a Nokia 2520 for Office, eMail and general surfing. Yes, I could just use either the Surface Pro 3 or MacBook Air for everything but why would I want too, more toys, more toys!


Edited by Relic - 7/23/14 at 2:58am
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post #32 of 59

It took FIVE YEARS for the iPod to sell 100,000,000 units.

It took FOUR YEARS for the iPhone to sell 100,000,000 units.

It took only TWO and a HALF years for the iPad to sell 100,000,000 units.

 

iPad sales frankly have just exploded to fast the first 3 years.  That type of growth was unsustainable. 

 

The iPhone was given time to grow and allowed the technology to catch up to demand.

The massive intial demand for the iPad has not give technology time to catch up.  Once the technology has a chance to catch up we should see steady 15-20% unit growth in iPad's again.

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post #33 of 59

Maybe a work horse tablet isn't the future. I mean iPad crashes a lot even doing the small stuff let alone under the full weight of a full app. If I want a "work horse" machine, I'll get a mac. An iPad with a keyboard costs the same as an MacBook Air and maybe its even more expensive. Most people don't actually need a work horse machine. For most people work horse means they can type on a keyboard. You can do that now. Sure you can't do photoshop but then you get a more powerful machine for that. I don't think the tablet and the mac/pc should be combined. I like the surface as a laptop but as a tablet it just plain sucks...and yes I own one.

post #34 of 59
Quote:
Originally Posted by AdonisSMU View Post
 

 I like the surface as a laptop but as a tablet it just plain sucks...and yes I own one.

 

I'm so sorry....

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post #35 of 59
Quote:
Originally Posted by AdonisSMU View Post
 

Maybe a work horse tablet isn't the future. I mean iPad crashes a lot even doing the small stuff let alone under the full weight of a full app. If I want a "work horse" machine, I'll get a mac. An iPad with a keyboard costs the same as an MacBook Air and maybe its even more expensive. Most people don't actually need a work horse machine. For most people work horse means they can type on a keyboard. You can do that now. Sure you can't do photoshop but then you get a more powerful machine for that. I don't think the tablet and the mac/pc should be combined. I like the surface as a laptop but as a tablet it just plain sucks...and yes I own one.

 

People were saying the same thing about the laptop when it first came out.

 

Too slow, too weak, too expensive.  I can do much more on a desktop.  It takes time for the tech to catch up.  Wait for a year or two and the iPad will be able to run 90% of the software that laptops can.

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post #36 of 59
Quote:
Originally Posted by sog35 View Post
 

 

I'm so sorry....

Why, it's a neat device.

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post #37 of 59
Originally Posted by sog35 View Post

iPad sales frankly have just exploded to fast the first 3 years.  That type of growth was unsustainable. 

 

All growth is “unsustainable” to the point of making such comments worthless.

 
 The iPhone was given time to grow and allowed the technology to catch up to demand. The massive intial demand for the iPad has not give technology time to catch up.  Once the technology has a chance to catch up...


To what? What are you trying to make this mean in this context?

post #38 of 59
Quote:
Originally Posted by Tallest Skil View Post
 

 

All growth is “unsustainable” to the point of making such comments worthless.


To what? What are you trying to make this mean in this context?

 

iPad was by far the fastest Apple device to reach 100,000,000 and 200,000,000 units. BY FAR.

 

We are talking YEARS faster not months faster.  My point is a lull is sales was going to happen.  The start was just way too explosive.  Once we stabilize I expect nice 15-20% unit sales increases.

 

My point is technology has not caught up to demand.  There really is no new tech for iPad3/4 owners to upgrade yet.  The iPadAir is lighter and small compared to the 3/4.  That's it.  Technology has to catch up.  I can see several possibilites:  laptop class cpu/ram, foldable screen, larger screen.  I don't know.  But some tech needs to introduced to lure iPad3/4 owners to upgrade and we will see growth again.

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post #39 of 59
Quote:
Originally Posted by Relic View Post
 

Why, it's a neat device.


 I don't understand how you can type with that floppy keyboard.

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post #40 of 59
Originally Posted by sog35 View Post
My point is a lull is sales was going to happen.

 

Oh, sure; absolutely.

 
 My point is technology has not caught up to demand.  There really is no new tech for iPad3/4 owners to upgrade yet.

 

More ‘desire’, then, but I see what you’re saying. 

 
The iPadAir is lighter and small compared to the 3/4. That's it.

 

Well, no, but...

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