Apple iPad decline continues with 19 percent drop in holiday quarter
In contrast with Mac and iPhone performance, the iPad continued a long-term decline in Apple's first fiscal quarter of 2017, seeing shipments fall 19 percent year-over-year.
For the holiday quarter, iPad sales fell to just over 13 million units from more than 16.1 million in the year ago period, Apple revealed in official data released on Tuesday. Accordingly, iPad revenue was down 22 percent from just over $7 billion to about $5.5 billion.
With some exceptions, iPad sales have been shrinking for the past few years. Compared with the first quarter of 2015, in fact, the company shipped over 8 million fewer units.
The iPhone saw shipments of about 78.3 million during the most recent quarter, up 5 percent. Mac units were up 1 percent to just under 5.4 million. All told, the company hit record quarterly revenue of $78.4 billion.
In comments during an investor conference call on Tuesday, CFO Luca Maestri said sales were higher than expected, noting iPad captured 85 percent of the market for tablets costing more than $200. The company's earnings release further touted satisfaction and business adoption in a subsequent conference call.
Aside from the usual rosy commentary, iPad still dropped year-over-year. The likely reason is that Apple didn't refresh anything in the iPad lineup in the fall, except to add more storage to the Air 2 and Mini 4, and drop prices on 9.7- and 12.9-inch iPad Pros.
Apple is rumored to be saving major updates for later this year, preparing three new models: updated 9.7- and 12.9-inch tablets, but also a 10.5-inch device, possibly with a sharper display.
The 9.7-inch tablet is expected to get minimal changes, becoming a budget model. There's no indication that Apple plans to update the iPad mini. A second-generation Apple Pencil could have magnets and a pocket clip.
For the holiday quarter, iPad sales fell to just over 13 million units from more than 16.1 million in the year ago period, Apple revealed in official data released on Tuesday. Accordingly, iPad revenue was down 22 percent from just over $7 billion to about $5.5 billion.
With some exceptions, iPad sales have been shrinking for the past few years. Compared with the first quarter of 2015, in fact, the company shipped over 8 million fewer units.
The iPhone saw shipments of about 78.3 million during the most recent quarter, up 5 percent. Mac units were up 1 percent to just under 5.4 million. All told, the company hit record quarterly revenue of $78.4 billion.
In comments during an investor conference call on Tuesday, CFO Luca Maestri said sales were higher than expected, noting iPad captured 85 percent of the market for tablets costing more than $200. The company's earnings release further touted satisfaction and business adoption in a subsequent conference call.
Aside from the usual rosy commentary, iPad still dropped year-over-year. The likely reason is that Apple didn't refresh anything in the iPad lineup in the fall, except to add more storage to the Air 2 and Mini 4, and drop prices on 9.7- and 12.9-inch iPad Pros.
Apple is rumored to be saving major updates for later this year, preparing three new models: updated 9.7- and 12.9-inch tablets, but also a 10.5-inch device, possibly with a sharper display.
The 9.7-inch tablet is expected to get minimal changes, becoming a budget model. There's no indication that Apple plans to update the iPad mini. A second-generation Apple Pencil could have magnets and a pocket clip.
Comments
I think there is a reason why the iPad Air 2 hasn't been updated. Great tablet. No need to upgrade, unless you're dying for the really expensive pen and really expensive Pro models (with keyboard, might as well buy a MacBook at them prices. Which I did).
I still use my original iPad on occasion. I only upgraded just last year when the large screen iPad Pro was released.
My next upgrade will be to a MacBook Pro. I am waiting for Intel to get on the ball regarding their 3D XPoint memory product. And I will likely upgrade the iPad also when Apple includes the NVM memory product in the device also.
The iPad lasts and lasts. Such a great product. It makes for a light upgrade cycle and the likely reason for the sales declines. It is far better than anything from the competition.
I bought one printer that was supposed to be an AirPrint printer for my dad but could set it up on his old network because he doesn't have a Mac or PC. Are there any printers that will just work with AirPrint?
Not it sure why Apple didn't update the line in at least the SoC, screens, camera. I am hoping it is because they want to move the iPads back to the spring, to even out the year some more (people can't buy everything in the holiday quarter.
a lot of what I do I don't need a full laptop for, but iOS is so crippled when it comes to actual productivity work that I can't really consider it. If all you're doing is consuming, then staying in the mac ecosystem isn't as important. I wish Apple would update iOS to be more than just a smart phone OS scaled up for a tablet.
A 10.5" Pro could take the platform through a completely new adoption cycle, so different and spectacular will the display performance be, if Roger's pixel calculations are correct.
Naturally, the refresh of the entire line would be waiting for this new Pro to be ready and stockpiled. Except for the Mini, maybe, which is already at a high plateau of development.
I have the 12.9" Pro and my wife has the 9.7" one. These things are rock-solid.
Given my itch to buy Apple products regularly, I'll probably end up buying a new iPad whenever it is available. However it may be at least 2-3 generations before my wife will replace hers. These things are built to last like regular computers.
I expect the replacement cycle will be very similar to Macs. It is no surprise that Mac sales this quarter exceeded iPad sales. There was a new Mac released. I expect iPad sales to be slightly higher in the quarter that they release a new model. But on across a year, I'd expect Mac and iPad sales to be somewhat similar.
The iPad Pros have support for the Pencil and they have the smart connector. I expect these to be used quite a lot moving forward. There may not be another direct input mode in the near future. That is why, IMHO, the Pro models currently are as future-proof as the new MBPs.
Why? what value would we get out of such device that we don't with a macbook?