Cook says tablet sales slump is 'speed bump,' looks toward future growth

Posted:
in iPad edited August 2014
In a recent interview, Apple CEO Tim Cook characterized an apparent slowdown in tablet sales as a "speed bump," a sentiment that runs counter to some industry pundits who claim slates like the iPad are past their prime.

Retina iPad mini review


Speaking with Re/code's Walt Mossberg, Cook was decidedly upbeat about the tablet industry, and unsurprisingly Apple's iPad, amid worries that the market is losing steam.

"We couldn't be happier with how we've done with the first four years of the iPad," Cook said. "I'd call what's going on recently a speed bump, and I've seen that in every category."

Cook said much the same in July when addressing shareholder concerns over sagging iPad numbers. For the June quarter, Apple managed to move 13.3 million iPads, which was in line with company estimates, but fell short of upside expectations. The performance was down 9.2 percent compared to the same period last year.

At the time, Cook pointed to channel reduction and localized slowdown in certain developed markets like the U.S. and Western Europe, but noted upcoming innovations and partnerships would drive growth down the road. While nothing concrete was announced, the Apple chief promised new hardware, software and services are on their way.

One possible outlet for growth is Apple's recently announced collaboration with IBM dubbed "IBM MobileFirst for iOS." The program focuses on enterprise solutions, with IBM developing more than 100 native iOS apps and services tailored to the needs of multiple industries. MobileFirst is set to roll out later this year.

As for future product prospects, a rumor today rekindled discussions over a gigantic 12.9-inch iPad that could be on track for an early 2015 launch. Current iPad Air and iPad mini with Retina display models are also expected to get a refresh this year with Touch ID fingerprint sensors, spec bumps and possibly a doubling of RAM for the 9.7-inch version.

The latest rumors claim Apple will double onboard memory for the "iPad Air 2" to 2GB, while keeping
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Comments

  • Reply 1 of 61
    dickprinterdickprinter Posts: 1,060member
    You tell 'em, Tim!! The partnership with IBM is what the big-ass iPad is for!!!
  • Reply 2 of 61
    apple ][apple ][ Posts: 9,233member

    Yeah, I wouldn't worry about that at all.

     

    iPads have been around for a few years now, and they're no longer a brand new category of product. 

     

    Also, I believe that people are keeping and using their iPads for much longer than they keep their phones for example, so the product lifespan for iPads is longer. People aren't going out and buying a brand new iPad every year, well at least most people aren't. iPads that are a few years old still work great today. Part of what makes iPads so great is that they're like an appliance that practically anybody is able to use. Do people go out and buy new refrigerators every year? Hell no.

     

    Unlike netbooks and other cheap, crappy fads, iPads are here to stay. They're not going away anytime soon. There have been a hell of a lot pathetically named "iPad killers" that are all six feet under now, rotting away in the cemetery for technological flops and other man made disasters, but has anything ever even come close to unseating the iPad from its throne? Nope.

  • Reply 3 of 61
    fallenjtfallenjt Posts: 4,034member
    Quote:

    Originally Posted by Apple ][ View Post

     

    Yeah, I wouldn't worry about that at all.

     

    iPads have been around for a few years now, and they're no longer a brand new category of product. 

     

    Also, I believe that people are keeping and using their iPads for much longer than they keep their phones for example, so the product lifespan for iPads is longer. People aren't going out and buying a brand new iPad every year, well at least most people aren't. iPads that are a few years old still work great today. Part of what makes iPads so great is that they're like an appliance that practically anybody is able to use. Do people go out and buy new refrigerators every year? Hell no.

     

    Unlike netbooks and other cheap, crappy fads, iPads are here to stay. They're not going away anytime soon. There have been a hell of a lot pathetically named "iPad killers" that are all six feet under now, rotting away in the cemetery for technological flops and other man made disasters, but has anything ever even come close to unseating the iPad from its throne? Nope.


    So iPad refresh should be every 2 years and new design should be every 4 years?

  • Reply 4 of 61
    fallenjtfallenjt Posts: 4,034member
    Quote:

    Originally Posted by Dickprinter View Post



    You tell 'em, Tim!! The partnership with IBM is what the big-ass iPad is for!!!

    Not big enough. This one is actually big...huge I mean...24" and resolution: 92ppi...lol

  • Reply 5 of 61
    apple ][apple ][ Posts: 9,233member
    Quote:

    Originally Posted by fallenjt View Post

     

    So iPad refresh should be every 2 years and new design should be every 4 years?


     

    No, of course not.

     

    Just like cars, there should be a brand new iPad model every single year, that is improved over the previous model.

     

    The average person wont be buying a brand new iPad every year, but that doesn't mean that Apple shouldn't release a new model every year.

     

    Everybody's upgrade cycle is different.

     

    John Smith owns an iPad 3, and John will be upgrading to the iPad Air 2 in September 2014.

     

    Craig Johnson just bought an iPad Air six months ago, so Craig doesn't plan on upgrading until 2015 when the iPad Pro gets released.

     

    The point I'm trying to make is that everybody is on their own schedule.

  • Reply 6 of 61
    Quote:

    Originally Posted by Apple ][ View Post

     

    Everybody's upgrade cycle is different.

    John Smith owns an iPad 3, and John will be upgrading to the iPad Air 2 in September 2014.

    Craig Johnson just bought an iPad Air six months ago, so Craig doesn't plan on upgrading until 2015 when the iPad Pro gets released.

    The point I'm trying to make is that everybody is on their own schedule.


    Some of us are behind schedule.  I'm still waiting to have a need for one of them newfangled gadgets--and I'm getting tired of waiting!

  • Reply 7 of 61
    apple ][ wrote: »
    Yeah, I wouldn't worry about that at all.

    iPads have been around for a few years now, and they're no longer a brand new category of product. 

    Also, I believe that people are keeping and using their iPads for much longer than they keep their phones for example, so the product lifespan for iPads is longer. People aren't going out and buying a brand new iPad every year, well at least most people aren't. iPads that are a few years old still work great today. Part of what makes iPads so great is that they're like an appliance that practically anybody is able to use. Do people go out and buy new refrigerators every year? Hell no.

    Unlike netbooks and other cheap, crappy fads, iPads are here to stay. They're not going away anytime soon. There have been a hell of a lot pathetically named "iPad killers" that are all six feet under now, rotting away in the cemetery for technological flops and other man made disasters, but has anything ever even come close to unseating the iPad from its throne? Nope.
    Couldn't have said it any better myself
  • Reply 8 of 61
    herbapouherbapou Posts: 2,227member
    YoY declines is more than a speed bump. On the other hand , he knows whats coming so maybe they have something that will increase sales
  • Reply 9 of 61
    solipsismxsolipsismx Posts: 19,566member
    herbapou wrote: »
    YoY declines is more than a speed bump. On the other hand , he knows whats coming so maybe they have something that will increase sales

    Has it been years of decline? I thought that just started this past fiscal year, which isn't surprising considering how unbelievably successful the device was from the start. It's growth rate far exceeds the iPhone.
  • Reply 10 of 61
    rogifanrogifan Posts: 10,669member
    solipsismx wrote: »
    Has it been years of decline? I thought that just started this past fiscal year, which isn't surprising considering how unbelievably successful the device was from the start. It's growth rate far exceeds the iPhone.
    Apple got to 225M iPads sold faster than they did with iPhone. It's not surprising to me that growth has slowed a bit. On the last Apple earnings call Cook said Apple had exciting things planned for iPad. So I've no doubt they're working on ways to reignite growth (beyond the IBM partnership).
  • Reply 11 of 61
    mstonemstone Posts: 11,510member
    Quote:

    Originally Posted by AppleInsider View Post



    The latest rumors claim Apple will double onboard memory for the "iPad Air 2" to 2GB, while keeping

    ...keeping... the iPad mini at 1 GB?

     

    Tune in tomorrow for the exciting conclusion.

  • Reply 12 of 61
    Quote:

    Originally Posted by herbapou View Post



    YoY declines is more than a speed bump. On the other hand , he knows whats coming so maybe they have something that will increase sales

    are you sure your name isn't herbperboule'?

     

    Quote:

    Originally Posted by SolipsismX View Post

    Has it been years of decline? I thought that just started this past fiscal year, which isn't surprising considering how unbelievably successful the device was from the start. It's growth rate far exceeds the iPhone.

    but it's market is much more capped by the phone at the bottom, and the laptop at the top.

     

    While we are moving into the Post-PC world, it will take 10 years to iterate through the laggards.   in Phones, it's 6 years.

     

    And I do think that we still have to address the real growth market, which is AppleID/CreditCard ("I spend money in the app store and in app purchases").  Unlike HW market share, buyers club market share and the frictionless purchase power of in-app purchases (Like chips at a casino), that's where the money is.     From the Living room, to the board room, to the dorm room, Apple wants all 30% of your all money, .99 at a time.

     

    That's the killer product.    The HW is just the syringe.  the buying experience is the drug.  the user experience is the high, The credit card bill is the crash.;-)

     

    Apple builds a great ecosystem from the elegance and utility of the device in your hands...   Samsung builds an ecosystem to sell you a device, Amazon builds a device to sell you an ecosystem, and Google, well, they build you  driverless car so you can spend time figuring out your device and the ecosystem

  • Reply 13 of 61
    nikon133nikon133 Posts: 2,600member
    apple ][ wrote: »
    No, of course not.

    Just like cars, there should be a brand new iPad model every single year, that is improved over the previous model.

    The average person wont be buying a brand new iPad every year, but that doesn't mean that Apple shouldn't release a new model every year.

    Everybody's upgrade cycle is different.

    John Smith owns an iPad 3, and John will be upgrading to the iPad Air 2 in September 2014.

    Craig Johnson just bought an iPad Air six months ago, so Craig doesn't plan on upgrading until 2015 when the iPad Pro gets released.

    The point I'm trying to make is that everybody is on their own schedule.

    Car models don't get upgraded every year, tho'. Like, 5th generation Subaru Legacy was in production between 2009 and 2014. Sure, there were different options - engine, equipment - but I'd consider them as different iPad Air variants - storage, 4G etc.

    The way I see it, tablets are - not unlike laptops and desktops - getting more than enough powerful for people not to justify frequent upgrade; at least until they conquer new market segments, which is what deal with IBM might provide. But for usual media consumption scenario, iPad Air is hard to justify over iPad 4, and I will be surprised if next iPad (Air 2?) will give enough reasons to replace iPad 4.

    My mum is still using original iPad I gave her back in 2011. Sure she would not complain about better screen and other advantages of Air, but for her needs - some browsing, Skype, email... even original iPad is still as good as it ever was. I gave her Mini back in 2013 to carry with her when she travels, but she still prefers original one. I will get her new full size end of this or early next year, but only because I don't want to wait for her old one to die before replacing it - she has grown very attached to it. Still, there will be good 4 years of use from original iPad - and we all know how modest it was compared to current offerings. iPad Air, I don't think she'd ever need better performing tablet than that.
  • Reply 14 of 61
    "Apple wrote:
    [" url="/t/181985/cook-says-tablet-sales-slump-is-speed-bump-looks-toward-future-growth#post_2584803"]
     
    Everybody's upgrade cycle is different.
    John Smith owns an iPad 3, and John will be upgrading to the iPad Air 2 in September 2014.
    Craig Johnson just bought an iPad Air six months ago, so Craig doesn't plan on upgrading until 2015 when the iPad Pro gets released.
    The point I'm trying to make is that everybody is on their own schedule.
    Some of us are behind schedule.  I'm still waiting to have a need for one of them newfangled gadgets--and I'm getting tired of waiting!

    It's just the thing for when you're drinking a nice cup of Earl Grey tea!
  • Reply 15 of 61
    Exactly! That's YOUR schedule. I've enjoyed owning and using an ipad1, ipad2, ipad3, and ipad air, while...you.. wait. that's the beauty of choice.
  • Reply 16 of 61
    Simply put, when Tim talks, listen, he knows more that we do!!
  • Reply 17 of 61
    jonljonl Posts: 210member
    Quote:

    Originally Posted by sog35 View Post

     

    Remember in 2013 when the stock was down?

     

    Tim said don't bet against Apple.  

    The stock went up 70% and we are now at all time highs.




    It's interesting. Tim said "Don't bet against Apple" on 60 Minutes on Dec 9, 2012, and in the short time between the all time high in, what, September, and the 60 Minutes broadcast, most of the betting against Apple had already taken place. The stock was around $530 at that time. It took another six months of betting against Apple before they dropped it to $390 or whatever the ridiculous number was. There was a concerted effort by the media to bet against Apple that whole time. Now Cramer is back to repeating what he was saying prior to all that betting against Apple: "Don't trade Apple, own it," which a few months later turned into something like "Apple is toxic, stay away." I really should watch financial TV regularly, because if they all start to march in unison against Apple again, it might be wise to listen. It doesn't matter whether it makes sense or not.

  • Reply 18 of 61
    Worst thing you can do is listen to financial tv
  • Reply 19 of 61
    The IBM partnership will help, but it will not significantly boost iPad sales. IBM doesn't really have a sales organization geared to selling end user devices and not every company is working with IBM Global Services. In order to move the needle Apple will have to convince existing users to upgrade and bring lots of new users into the fold. I personally see no reason to upgrade my iPad 4 since it runs everything just great. A 12" iPad could be interesting, especially with a decent keyboard case...
  • Reply 20 of 61
    freerangefreerange Posts: 1,594member
    The annual sales for the iPad market will never be as large as for iPhones as smartphones are more ubiquitous, and the iPad replacement cycle is much longer. This isn't rocket science. That is all the story that needs to be told other than that Apple will continue to expand the feature set and ecosystem so that demand will in fact stay strong.
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