The reason sales aren't going up is simple... These devices work and continue to work. We still have about 2% of our app user base on iPad 1 and nearly two thirds on iPad 2. Apple continues to support iOS 9 on the latter which means people are a) satisfied with their purchase b) use it in their daily lives c) don't have a need to upgrade. I'd rather have that because it's a long term customer.
I agree with you 100%; I have iPad Mini (1) and it runs great with iOS 9. This year I plan updating to a mini 4 or even a Pro , just for the new technology not because of the lack of performance of my current product.
My son has my original ipad 2. His only complaint is that new games are not compatible but he gets to use it for netflix and youtube. I will upgrade it eventually but for daily use it is still great.
It looks to me like Apple is out aggressively swinging marketing deals with the carriers to push Apple products, with the iPad Air2 and iPad Mini 4 the latest with special deals. Swing by T-Mo to take advantage if you're in the market for one not tied to wi-fi only. $26/mo (iPad Air 2) or $22/month (iPad mini 4) for 18-mo lease.
The reason sales aren't going up is simple... These devices work and continue to work. We still have about 2% of our app user base on iPad 1 and nearly two thirds on iPad 2. Apple continues to support iOS 9 on the latter which means people are a) satisfied with their purchase b) use it in their daily lives c) don't have a need to upgrade. I'd rather have that because it's a long term customer.
This all the way. The fact is we're still on iPad 2&3. They still work fine, so why upgrade? I'd love to have an iPad Pro, but it's just not an option right now. But whenever the time comes for a new computing device, I'll tell you one thing is sure: we will be getting iPads. And Apple knows this.
Apple is doing a great job at making the right decisions because they are...well...right. The core intention is not driven by profit or by "what will make wall street jiz their pants". The core intention is to make great products, services and user experiences. I truly believe if they continue to do this they will continue to be relevant in decades and centuries to come.
My own experience mirrors what appears to be the general consensus here. I'm still using my iPad 3 (though I haven't switched to iOS9 as I think it's sluggish enough on iOS 8 as it is), and I'm even debating just getting an iPhone 6s Plus and foregoing a new iPad altogether (at least for the time being anyway).
Well that’s the rub Wall Street is obsessed over. Wall Street wants turnover, churn, new stuff being sold, growth, incessant growth. The very strengths you point out are considered weaknesses by analysts. Android devices have very little resale value, don’t last as long as iOS devices so there’s constant chucking of the old and buying the new. Not so with Apple as you point out.
All the hand-wringing about Apple's alleged lack of diversification (iPhone business painting them into a corner, and other nonsensical worries) virtually ignores the completely laughable state of affairs of other players, e.g.:
HTC's unimaginative and witless attempts to stay relevant in the Android shithole while bleeding money
Microsoft's desperate moves from failure, to redundancy, to more failure, to obvious attempts at copying Apple – poorly
Amazon's disastrous forays into hardware, in an attempt to do a vertical services + hardware tie-in like Apple, leaving them confined to the role of services provider and retail outlet
Acer, Asus, _insert generic, undifferentiated box-maker of your choice that can disappear tomorrow and no one would notice or care_
Just to name a few.
Meanwhile, Apple does everything from music, to watches, to phones, to Macs, to operating systems *designed specifically for the hardware they're supposed to run on*, and more, and is doing remarkably well (in some cases dominating, either in market share, or profit, or both) in all of these areas.
There's a palpable disconnect between analyst perspective and consumer reality when it comes to Apple.
Count me among those still on iPad 2, and in my case, it's a hand-me-down from my wife, a train commuter who upgraded to an iPad Mini.
I use it on my desk, in conjunction with my Mac, for one particular thing that Mac OS X doesn't have (certain Chinese-language dictionaries -- search for Pleco if you're curious). I also use it away from the desk, of course, mostly for things related to the visual arts, which is what I do. Will be buying the Pro as soon as it comes out -- the iPad 2 has been great, but I'm looking for the best possible integration between Mac OS X and the iPad -- specifically from the iPad to the Mac. So the Pro looks like it's made for me.
I read most of the comments on DED's recent editorial, most of which didn't address his core point: in contrast with Microsoft, Apple isn't trying to converge tablets and computers -- this certainly fits my case, where I want the best possible tablet and the best possible computer, and not some hybrid compromise between them.
The iPad is what drug me into the Apple ecosystem, it's an amazing device, not buying a Pro, but use my Mini 2 and Air 2 daily.
Heck, I integrated my LTE Mini 2 into my car stereo, I have a giant always updated GPS and use the free music streaming from TMobile, it's perfect. If I was in a decision making position at Apple, I'd sell a variant of the Mini that made it a phone.
My own experience mirrors what appears to be the general consensus here. I'm still using my iPad 3 (though I haven't switched to iOS9 as I think it's sluggish enough on iOS 8 as it is), and I'm even debating just getting an iPhone 6s Plus and foregoing a new iPad altogether (at least for the time being anyway).
I'm still using an iPad 2 and didn't notice any more slow down upgrading to iOS9, in fact I feel like iOS9 made it tiny bit more responsive. Not sure what others have experienced. Is it still sluggish? So much so, that I feel like I'm re-living dial-up all over again.
All the hand-wringing about Apple's alleged lack of diversification (iPhone business painting them into a corner, and other nonsensical worries) virtually ignores the completely laughable state of affairs of other players, e.g.:
HTC's unimaginative and witless attempts to stay relevant in the Android shithole while bleeding money
Microsoft's desperate moves from failure, to redundancy, to more failure, to obvious attempts at copying Apple – poorly
Amazon's disastrous forays into hardware, in an attempt to do a vertical services + hardware tie-in like Apple, leaving them confined to the role of services provider and retail outlet
Acer, Asus, _insert generic, undifferentiated box-maker of your choice that can disappear tomorrow and no one would notice or care_
Just to name a few.
Meanwhile, Apple does everything from music, to watches, to phones, to Macs, to operating systems *designed specifically for the hardware they're supposed to run on*, and more, and is doing remarkably well (in some cases dominating, either in market share, or profit, or both) in all of these areas.
There's a palpable disconnect between analyst perspective and consumer reality when it comes to Apple.
The only real hardware gripe about iPads is their abysmal lack of an SD slot, which sticks users with the storage they initially bought.
omg are you serious.. that aint never gonna happen. hell even the clones are dropping their SD slots now, too. and its the right choice -- most users dont want to dick around w/ removable media, and on the coding size it introduces many challenges.
next youll be complaining about removable batteries, right?
I'm still using an iPad 2 and didn't notice any more slow down upgrading to iOS9, in fact I feel like iOS9 made it tiny bit more responsive. Not sure what others have experienced. Is it still sluggish? So much so, that I feel like I'm re-living dial-up all over again.
I based my decision to stay with iOS 8.x.x on an article I read (I forget where) that recommended iPad 3 (and previous) users stick with iOS 8. Maybe I'll upgrade to iOS 9, and when it gets too slow, I'll just have to buy a new iPad.
omg are you serious.. that aint never gonna happen. hell even the clones are dropping their SD slots now, too. and its the right choice -- most users dont want to dick around w/ removable media, and on the coding size it introduces many challenges.
The truth is, if you want to download pics from an SD card to your iPad, Apple has a solution for that. Otherwise, I have enough miscellaneous flash drives and SD cards floating around in my laptop bag with who-knows-what on them.
I have 2 iPads, a mini 1 and an iPad 3. Both work perfectly with iOS 9. Thing is, I seldom use them. Maybe once or twice a day for a few minutes. I have the mini at home on the coffee table in the TV room and the iPad 3 in my office. The iPads are great but I have no motivation to upgrade because they are not really significant computing devices for me as I prefer to use my Macs most of the time.
Well that’s the rub Wall Street is obsessed over. Wall Street wants turnover, churn, new stuff being sold, growth, incessant growth. The very strengths you point out are considered weaknesses by analysts. Android devices have very little resale value, don’t last as long as iOS devices so there’s constant chucking of the old and buying the new. Not so with Apple as you point out.
For certain Wall Street doesn't seem to know how to value Apple (as Apple doesn't operate like most other - or any other - company). On the one hand, as you note, Apple isn't just focused on selling as many "new device units" as they can no matter what. Wall Street doesn't like that. But Apple is valued like those producers - they are one bad unit away from total failure - that their could be & is increasingly likely to be a massive shift to non-iPhones in short order.
On the other hand, what Apple is doing is building a grow user base of products and ecosystem that keeps the user "in & upgrading" (although those upgrades are lengthening). That should be then valued more like a business that produces an annuity - like they value MSFT for its enterprise SW business - but Wall Street don't seem to be doing that either.
I completely agree with you. There would be short term pain with investor panic but long term they'd get over it. With respect to iPads I'm not sure I completely agree with Cook pushing this enterprise angle. In some ways it gives off the false notion that the device has some how failed in the consumer market and so now Apple is desperately trying to juice sales by going after the enterprise. In reality the issue with iPad is it took off so fast and the iPad 2 was so much better than the iPad 1 which drove huge sales growth and then same with retina. Now the growth is declining as those devices are good enough for what they're used for and people don't feel the need to upgrade as frequently. Plus larger screen phones are cannibalizing sales. I'm not sure what Apple does about that long term. I'm not sure turning iPad into a laptop is the right idea.
Well, you certainly seem to be the most concerned person in the world with Apple's image. You post relentlessly about what each person is saying what about Apple, how that could be bad for Apple, and how Tim Cook needs to do more to protect Apple's image/reputation/whatever. So much so that you believe an initiative to sell more iPads into the enterprise (so Apple can sell more iPads and make more money) is a bad idea because "someone on the Internet" is saying that it is an example of Apple failing.
Another issue for iPad sales is that the announcement of the iPad Pro undoubtedly stalled some good part of the sales at the end of the quarter as people postpone purchases waiting for the new model to be delivered. Next quarters iPad sales may actually go up YoY. It will be interesting to see how this plays out. The iPad Pro is certainly a more compelling upgrade for folks with older models. It also may drive more people into the space with the pencil input capability and larger screen.
Comments
The reason sales aren't going up is simple... These devices work and continue to work. We still have about 2% of our app user base on iPad 1 and nearly two thirds on iPad 2. Apple continues to support iOS 9 on the latter which means people are a) satisfied with their purchase b) use it in their daily lives c) don't have a need to upgrade. I'd rather have that because it's a long term customer.
I agree with you 100%; I have iPad Mini (1) and it runs great with iOS 9. This year I plan updating to a mini 4 or even a Pro , just for the new technology not because of the lack of performance of my current product.
https://newsroom.t-mobile.com/news/now-available-with-jump-on-demand-at-t-mobile-ipad-air-2-and-ipad-mini-4.htm
This all the way. The fact is we're still on iPad 2&3. They still work fine, so why upgrade? I'd love to have an iPad Pro, but it's just not an option right now. But whenever the time comes for a new computing device, I'll tell you one thing is sure: we will be getting iPads. And Apple knows this.
My own experience mirrors what appears to be the general consensus here. I'm still using my iPad 3 (though I haven't switched to iOS9 as I think it's sluggish enough on iOS 8 as it is), and I'm even debating just getting an iPhone 6s Plus and foregoing a new iPad altogether (at least for the time being anyway).
Well that’s the rub Wall Street is obsessed over. Wall Street wants turnover, churn, new stuff being sold, growth, incessant growth. The very strengths you point out are considered weaknesses by analysts. Android devices have very little resale value, don’t last as long as iOS devices so there’s constant chucking of the old and buying the new. Not so with Apple as you point out.
All the hand-wringing about Apple's alleged lack of diversification (iPhone business painting them into a corner, and other nonsensical worries) virtually ignores the completely laughable state of affairs of other players, e.g.:
Just to name a few.
Meanwhile, Apple does everything from music, to watches, to phones, to Macs, to operating systems *designed specifically for the hardware they're supposed to run on*, and more, and is doing remarkably well (in some cases dominating, either in market share, or profit, or both) in all of these areas.
There's a palpable disconnect between analyst perspective and consumer reality when it comes to Apple.
Count me among those still on iPad 2, and in my case, it's a hand-me-down from my wife, a train commuter who upgraded to an iPad Mini.
I use it on my desk, in conjunction with my Mac, for one particular thing that Mac OS X doesn't have (certain Chinese-language dictionaries -- search for Pleco if you're curious). I also use it away from the desk, of course, mostly for things related to the visual arts, which is what I do. Will be buying the Pro as soon as it comes out -- the iPad 2 has been great, but I'm looking for the best possible integration between Mac OS X and the iPad -- specifically from the iPad to the Mac. So the Pro looks like it's made for me.
I read most of the comments on DED's recent editorial, most of which didn't address his core point: in contrast with Microsoft, Apple isn't trying to converge tablets and computers -- this certainly fits my case, where I want the best possible tablet and the best possible computer, and not some hybrid compromise between them.
Heck, I integrated my LTE Mini 2 into my car stereo, I have a giant always updated GPS and use the free music streaming from TMobile, it's perfect. If I was in a decision making position at Apple, I'd sell a variant of the Mini that made it a phone.
My own experience mirrors what appears to be the general consensus here. I'm still using my iPad 3 (though I haven't switched to iOS9 as I think it's sluggish enough on iOS 8 as it is), and I'm even debating just getting an iPhone 6s Plus and foregoing a new iPad altogether (at least for the time being anyway).
I'm still using an iPad 2 and didn't notice any more slow down upgrading to iOS9, in fact I feel like iOS9 made it tiny bit more responsive. Not sure what others have experienced. Is it still sluggish? So much so, that I feel like I'm re-living dial-up all over again.
All the hand-wringing about Apple's alleged lack of diversification (iPhone business painting them into a corner, and other nonsensical worries) virtually ignores the completely laughable state of affairs of other players, e.g.:
Just to name a few.
Meanwhile, Apple does everything from music, to watches, to phones, to Macs, to operating systems *designed specifically for the hardware they're supposed to run on*, and more, and is doing remarkably well (in some cases dominating, either in market share, or profit, or both) in all of these areas.
There's a palpable disconnect between analyst perspective and consumer reality when it comes to Apple.
This ^
omg are you serious.. that aint never gonna happen. hell even the clones are dropping their SD slots now, too. and its the right choice -- most users dont want to dick around w/ removable media, and on the coding size it introduces many challenges.
next youll be complaining about removable batteries, right?
I'm still using an iPad 2 and didn't notice any more slow down upgrading to iOS9, in fact I feel like iOS9 made it tiny bit more responsive. Not sure what others have experienced. Is it still sluggish? So much so, that I feel like I'm re-living dial-up all over again.
I based my decision to stay with iOS 8.x.x on an article I read (I forget where) that recommended iPad 3 (and previous) users stick with iOS 8. Maybe I'll upgrade to iOS 9, and when it gets too slow, I'll just have to buy a new iPad.
omg are you serious.. that aint never gonna happen. hell even the clones are dropping their SD slots now, too. and its the right choice -- most users dont want to dick around w/ removable media, and on the coding size it introduces many challenges.
The truth is, if you want to download pics from an SD card to your iPad, Apple has a solution for that. Otherwise, I have enough miscellaneous flash drives and SD cards floating around in my laptop bag with who-knows-what on them.
I have 2 iPads, a mini 1 and an iPad 3. Both work perfectly with iOS 9. Thing is, I seldom use them. Maybe once or twice a day for a few minutes. I have the mini at home on the coffee table in the TV room and the iPad 3 in my office. The iPads are great but I have no motivation to upgrade because they are not really significant computing devices for me as I prefer to use my Macs most of the time.
Well that’s the rub Wall Street is obsessed over. Wall Street wants turnover, churn, new stuff being sold, growth, incessant growth. The very strengths you point out are considered weaknesses by analysts. Android devices have very little resale value, don’t last as long as iOS devices so there’s constant chucking of the old and buying the new. Not so with Apple as you point out.
For certain Wall Street doesn't seem to know how to value Apple (as Apple doesn't operate like most other - or any other - company). On the one hand, as you note, Apple isn't just focused on selling as many "new device units" as they can no matter what. Wall Street doesn't like that. But Apple is valued like those producers - they are one bad unit away from total failure - that their could be & is increasingly likely to be a massive shift to non-iPhones in short order.
On the other hand, what Apple is doing is building a grow user base of products and ecosystem that keeps the user "in & upgrading" (although those upgrades are lengthening). That should be then valued more like a business that produces an annuity - like they value MSFT for its enterprise SW business - but Wall Street don't seem to be doing that either.
I completely agree with you. There would be short term pain with investor panic but long term they'd get over it. With respect to iPads I'm not sure I completely agree with Cook pushing this enterprise angle. In some ways it gives off the false notion that the device has some how failed in the consumer market and so now Apple is desperately trying to juice sales by going after the enterprise. In reality the issue with iPad is it took off so fast and the iPad 2 was so much better than the iPad 1 which drove huge sales growth and then same with retina. Now the growth is declining as those devices are good enough for what they're used for and people don't feel the need to upgrade as frequently. Plus larger screen phones are cannibalizing sales. I'm not sure what Apple does about that long term. I'm not sure turning iPad into a laptop is the right idea.
Well, you certainly seem to be the most concerned person in the world with Apple's image. You post relentlessly about what each person is saying what about Apple, how that could be bad for Apple, and how Tim Cook needs to do more to protect Apple's image/reputation/whatever. So much so that you believe an initiative to sell more iPads into the enterprise (so Apple can sell more iPads and make more money) is a bad idea because "someone on the Internet" is saying that it is an example of Apple failing.
Perspective much?
Another issue for iPad sales is that the announcement of the iPad Pro undoubtedly stalled some good part of the sales at the end of the quarter as people postpone purchases waiting for the new model to be delivered. Next quarters iPad sales may actually go up YoY. It will be interesting to see how this plays out. The iPad Pro is certainly a more compelling upgrade for folks with older models. It also may drive more people into the space with the pencil input capability and larger screen.