iPad Air takes top tablet spot in December, reversing Apple's tablet price erosion

Posted:
in iPad edited January 2014
Apple's revamped, fifth generation full-size iPad Air was the most popular iPad over the holidays, contributing to a end of the iPad's Average Sales Price erosion.

CIRP iPad mix 2013


According to a report by Consumer Intelligence Research Partners, Apple's iPad product mix shifted dramatically toward newer models over the holidays.

iPad Air accounted for 41 percent of iPads sold, while the fourth generation "iPad with Retina Display" made up another 13 percent. The lowest price iPad 2 represented only 5 percent of sales. Together, the full sized iPads were 59 percent of Apple's tablet sales.

Apple's iPad mini models accounted for 41 percent of sales, with the base model representing 25 percent of all sales and the availability-constrained Retina version making up 16 percent of the mix.

December 2012, the firm noted that the base iPad 2 model represented 27 percent of all iPads sold, a figure that drove analysts to assume that customers were increasingly less interested in premium models at higher prices.

However, Tim Cook's 2013 iPad Christmas indicates an affinity for higher priced models, apparently driven by the elimination of the extra weigh and thickness previously associated with full sized iPads by the sleek, pencil thin new iPad Air model.



CIRP Partner and Co-Founder. Mike Levin noted that "Apple managed to shift significant sales to its higher-priced models," adding that, "for the past year, the legacy iPad 2 grabbed from one-quarter to one-third of iPad sales.

"Along with the trend toward sale of models with larger storage capacities, Apple should see higher iPad average selling prices, with iPad 2 at only 5% of total sales and iPad mini sales split between the original model and the new iPad mini with Retina display."

ASPs for Apple's iPads have dropped every quarter since 2011, but that trend appears to have reversed slightly during the final quarter of 2013. Apple is expected to release official sales numbers for iPads next week during its quarterly earnings conference scheduled for January 27.
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Comments

  • Reply 1 of 25
    red oakred oak Posts: 640member
    If you do the math, at the lowest possible price for each model, the overall ASP comes to $460. We are going to see a very nice ASP lift this past quarter
  • Reply 2 of 25

    5% for the iPad 2. Sounds like we were right when we thought it was stupid to keep selling it. Keep it, maybe, as an education-only option (like Apple did with the white iMac long after the aluminum models were released).

  • Reply 3 of 25
    red oakred oak Posts: 640member
    Also note the ASP Apple reports is less $10 to $20 of deferred revenue... Which is effectively all profit. And will start hitting the income statement in a couple of years. That will give some tailwinds to margins
  • Reply 4 of 25
    rogifanrogifan Posts: 10,669member
    sog35 wrote: »
    great decision.

    It basically pushed people to buy the more expensive models.
    The 5C did the same thing.
    Pushed people to buy the 5S.
    Um, no. The iPad Air aping the mini styling and being only 1 pound is what pushed it to sell so well. As far as the 5C, no way is Apple going to create a new case design, manufacturing line and spend money on advertising something they don't care about selling. Of course if more people are buying the 5S that's not bad for Apple. But Apple didn't build the 5C so people would buy the 5S instead. That would be a complete waste of money.
  • Reply 5 of 25
    rogifanrogifan Posts: 10,669member
    5% for the iPad 2. Sounds like we were right when we thought it was stupid to keep selling it. Keep it, maybe, as an education-only option (like Apple did with the white iMac long after the aluminum models were released).
    Somebody is buying it otherwise they would have stopped selling it. It's probably being used in business or as a POS system where retina and top of the line performance aren't required. My guess is it will be discontinued this year.
  • Reply 6 of 25
    solipsismxsolipsismx Posts: 19,566member
    rogifan wrote: »
    Somebody is buying it otherwise they would have stopped selling it. It's probably being used in business or as a POS system where retina and top of the line performance aren't required. My guess is it will be discontinued this year.

    Based on those 5% numbers I wouldn't be surprised if they silently dropped it from the line up before the next re-up, which includes moving ti to education-only.
  • Reply 7 of 25
    Originally Posted by Rogifan View Post

    Somebody is buying it otherwise they would have stopped selling it. 

     

    “Someone” still bought the 17” MacBook Pro. That’s not really a valid belief.

  • Reply 8 of 25
    jungmarkjungmark Posts: 6,657member
    Possible NYT headline: Apple doomed? 60% iPad buyers say 'No' to the iPad Air.
  • Reply 9 of 25
    MacProMacPro Posts: 18,141member
    solipsismx wrote: »
    Based on those 5% numbers I wouldn't be surprised if they silently dropped it from the line up before the next re-up, which includes moving ti to education-only.

    I'd better sell mine quick then. I have a growing collection of unused iPads as we keep upgrading! I've got unused 2s now Retinas. Damn Apple for all these upgrades! Bad enough I have one of every iPhone ever made.
  • Reply 10 of 25

    Great. Now would they fix the Safari crashing issue? :grumble:

  • Reply 11 of 25
    herbapouherbapou Posts: 2,221member
    Yet another hint that margins will be better.
  • Reply 12 of 25
    Interesting, I was given an iPad Air for Christmas and have been enjoying it quite a bit.
  • Reply 13 of 25
    rogifan wrote: »
    Somebody is buying it otherwise they would have stopped selling it. It's probably being used in business or as a POS system where retina and top of the line performance aren't required. My guess is it will be discontinued this year.

    Companies LOVE the iPad 2 as a premium give-away product during promotions. They advertise it as a free iPad, giving the impression that it's worth $499 when in fact it's worth a lot less. Even then, it's a nice gift to win and Apple will let the person upgrade it to an iPad Air for full value if they don't unbox it.
  • Reply 14 of 25
    “Someone” still bought the 17” MacBook Pro. That’s not really a valid belief.

    I really came close to buying on of those a few years back. Recently I came across a used 17" and just for fun tried to heft it with one hand... OMG, what a boat anchor!! In looking back, I'll bet Apple was looking far enough ahead to see that the users were going to be demanding more portability which spelled "DOOM" for the 17" MBP and that's why they unloaded it when they did, even though there was a bit of whining about it at the time.

    It looks like Apple called that one right.
  • Reply 15 of 25
    hentaiboy wrote: »
    Great. Now would they fix the Safari crashing issue? :grumble:

    It crashes?? Who would have known!
  • Reply 16 of 25
    aaarrrggghaaarrrgggh Posts: 1,572member
    hentaiboy wrote: »
    Great. Now would they fix the Safari crashing issue? :grumble:
    Just Safari for you?! I get 5-6 reboots a day on my Air. Almost brought it back to demand a refund.
  • Reply 17 of 25
    fastasleepfastasleep Posts: 2,541member
    Quote:

    Originally Posted by aaarrrgggh View Post





    Just Safari for you?! I get 5-6 reboots a day on my Air. Almost brought it back to demand a refund.

     

    Uh, that's not normal at all. You either have a serious software or hardware problem.

  • Reply 18 of 25
    Companies LOVE the iPad 2 as a premium give-away product during promotions. They advertise it as a free iPad, giving the impression that it's worth $499 when in fact it's worth a lot less. Even then, it's a nice gift to win and Apple will let the person upgrade it to an iPad Air for full value if they don't unbox it.

    The current iPad mini with retina is much better value than iPad 2 with it running hardware behind the IPad mini w/o retina it should be priced somewhere inbetween $250-350 and they sold the 3rd gen in-between at $400-450 could have been possible.

    I just wonder how the 4th gen is selling this well considering apple stopped production?
  • Reply 19 of 25
    sog35 wrote: »
    great decision.

    It basically pushed people to buy the more expensive models.
    The 5C did the same thing.
    Pushed people to buy the 5S.

    Yep! That's what Apple is good at. They price stuff in such a way that usually gets people to move to the more expensive item.

    I remember back when the iPod Touch started at $229 for 8GB... but for only $299 you could get 32GB !!!

    $70 more for 4 times the storage? Hell yeah!

    The same sorta thing is happening with the iPad Mini as well. I know the starting price of $299 is attractive... but it's old hardware and a crappy screen. You'd be much better off finding an extra $100 for the Retina iPad Mini to get current hardware and a better screen.

    But alas... some people simply look for the lowest price. They don't care about anything else. I know people who bought the iPhone 4S today because it was the "free" phone at Verizon. The sad thing is... the 4S already runs like crap and they're gonna have to keep it for 2 years!

    They would have been much better off to find $100 and get the 5C. They'd have a semi-modern phone and LTE.

    Oh well... sometimes Apple's pricing scheme doesn't move people up to the next model.
  • Reply 20 of 25
    Quote:
    Originally Posted by jungmark View Post

    Possible NYT headline: Apple doomed? 60% iPad buyers say 'No' to the iPad Air.

     

    Wait, don't give them ideas.
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