Apple's iPad now definitively replacing PC sales in education
Market data in the June quarter showed with certainty for the first time ever that Apple's iPad is replacing sales of traditional PCs to schools and students, according to one analysis.
Charlie Wolf with Needham & Company said in a note to investors on Tuesday that PC education shipments fell by 265,000 units, or 13.9 percent, from the June quarter a year ago. Apple, meanwhile, sold nearly a million iPads in the K-12 market in June, which he said is "definitive evidence" that the iPad has been "cannibalizing" PC sales in the U.S. education market.
Apple's iPad sales in the June quarter were double what the company sold a year prior. The iPad also reached nearly double the number of Macs Apple sold to education buyers during the quarter.
"Clearly, a significant portion of iPad sales represented an expansion of the market," Wolf wrote. "But in view of the fact that Mac sales held steady at around 520,000 units but overall PC sales declined by 265,000 units from 1.90 million to 1.64 million units, we believe the inescapable conclusion is that the iPad is beginning to cannibalize a material portion of PC sales in this market."
In Wolf's view, sales of the iPad to the education market are only the beginning. He believes the iPad will begin to meaningfully chip away at PC sales in other, larger markets in the near future.
"In our view, the education market is the canary in the coal mine," Wolf wrote. "The next market the iPad is likely to impact is the much larger U.S. home market."
While the iPad had a strong June quarter, it was a mixed bag for the Mac. Sales of the Mac were strong in the U.S. business market, where it saw 56.6 percent year-over-year growth compared to an 8.8 percent decline in PC sales, but the worldwide home Mac sales fell 4.6 percent.
Apple reported in July that it had reached a new all-time quarterly record for iPad sales, reaching 17 million. Mac sales, however, grew only 2 percent year over year, but that was still enough for a new June quarter record on sales of 4 million units.
Charlie Wolf with Needham & Company said in a note to investors on Tuesday that PC education shipments fell by 265,000 units, or 13.9 percent, from the June quarter a year ago. Apple, meanwhile, sold nearly a million iPads in the K-12 market in June, which he said is "definitive evidence" that the iPad has been "cannibalizing" PC sales in the U.S. education market.
Apple's iPad sales in the June quarter were double what the company sold a year prior. The iPad also reached nearly double the number of Macs Apple sold to education buyers during the quarter.
"Clearly, a significant portion of iPad sales represented an expansion of the market," Wolf wrote. "But in view of the fact that Mac sales held steady at around 520,000 units but overall PC sales declined by 265,000 units from 1.90 million to 1.64 million units, we believe the inescapable conclusion is that the iPad is beginning to cannibalize a material portion of PC sales in this market."
In Wolf's view, sales of the iPad to the education market are only the beginning. He believes the iPad will begin to meaningfully chip away at PC sales in other, larger markets in the near future.
"In our view, the education market is the canary in the coal mine," Wolf wrote. "The next market the iPad is likely to impact is the much larger U.S. home market."
While the iPad had a strong June quarter, it was a mixed bag for the Mac. Sales of the Mac were strong in the U.S. business market, where it saw 56.6 percent year-over-year growth compared to an 8.8 percent decline in PC sales, but the worldwide home Mac sales fell 4.6 percent.
Apple reported in July that it had reached a new all-time quarterly record for iPad sales, reaching 17 million. Mac sales, however, grew only 2 percent year over year, but that was still enough for a new June quarter record on sales of 4 million units.
Comments
Sheez! What a horrible chart! Looks like an excel creation....ever heard of Pages?
I sure hope this dude knows what he's talking about and this really is happening. After all the negative things I've heard about how useless iPads are for everything, I was beginning to wonder if it was actually going to replace low-end PCs. I had recently heard a few back-to-school spots saying that Windows netbooks were gaining traction at the low-end for students not wanting to pay for even $399 tablets (iPad). I wasn't entirely sure a tablet could replace a computer with a keyboard for students and that students would need to buy some Bluetooth keyboard to do any decent typing. The one problem remains is whether the lower cost alone of a Windows netbook would win out over the iPad with all things being considered. If the iPad becomes the student's choice in education, Apple will really have control that sector unless the warnings of iPad commoditization come true. I wonder if Apple can evolve the iPad into something even more powerful to fully take the place of low-end computing. I also hope that Apple will be able to meet iPad demand if tablet numbers in education suddenly explodes. Apple can certainly use two solid revenue drivers to boost revenue and hopefully, the share price will follow.
My GF teaches at a Charter School and they just bought all new iMacs for the teachers...one iMac per classroom. My GF also got an iPad which, for the most part, has replaced her old Dell POS laptop. The iPad has not quite replaced the laptop yet. She could do with an MBA as well. But fortunately we have an iMac at home. But she does all her email on the iPad which is quite a considerable part of her job.
It just kills me though, they go to the expense of getting iMacs and they insist on using Google Gmail, Google Docs, and Firefox...what idiots! It's so fragmented and just doesn't work that well. She's have a tough time with it b/c she's used to Apple Mail, Safari and iWork.
It is amazing to me how many people still don't understand the Apple ecosystem. I see people with iPads and Android phones! Bought because the phone was cheap! Ugh!
Or worse no iPad and just an Android phone!
Children, from what I've observed, have no problem with the current iPad. It's claimed they do but that complaint isn't coming from them.
If price is the issue, keep the iPad 2 around for still another year and lower the price still further. It's a perfectly viable device in no need of a major upgrade as a budget option.
Quote:
Originally Posted by OldMacGuy
Home user here. I sold my MBP a couple of months after I got an iPad. We now have two iPads in the house. I believe that within two or three more years, I won't even have my iMacs any more. The future is calling..
I so agree with you on this....My iMac is the original intel 20" and although I would really like to replace it with an MBA and have ML and full on iCloud capabilities...I seem to be doing OK with my iP4s, and iPad and the old iMac.
When it dies, I don't think I will replace it with another iMac. Perhaps an 11" MBA, an iPad 7" an iP5 and an IOS printer and I can do all that for just about the price of a new iMac.
The most expensive part of a computer is the screen....I'm going save $'s on not getting an iMac and invest the $'s saved into a large screen ATV when they come out! Have the large screen where I really need it!
The PC industry did not see this coming, and ignored it and thought people would never abandon a PC. 30 yrs ago Main frame and terminal (Client/Server computing) were big and PCs was taking its lunch away. Now we have the ipad (terminal device) in conjunction with cloud computing (main frame) take away the PC lunch. Unless your in one of those two camps or both the future success will not be very good.
Quote:
Originally Posted by Maestro64
The PC industry did not see this coming, and ignored it and thought people would never abandon a PC. 30 yrs ago Main frame and terminal (Client/Server computing) were big and PCs was taking its lunch away. Now we have the ipad (terminal device) in conjunction with cloud computing (main frame) take away the PC lunch. Unless your in one of those two camps or both the future success will not be very good.
Agreed! And many posters on these boards didn't see it either. I remember all the comments of how is it going to fit in between an iPhone and a laptop? Or it's just a larger iPhone without the phone capability...I've yet to see one mea culpa here!
I well remember these same attacks on the iPad. One rejoinder to these attacks was wonderful.
"So is a swimming pool just a big bathtub?"
I've got one. I knew it was going to be huge (and that I'd buy one) but I couldn't see how it would fit into my life between an iPhone and 13" MBP user. Well, they finally added the features I thought were needed from the start and iCloud does a great job of syncing that I'm not likely to forego another 13" MBP (even it is Retina) to get an iMac.
I predict that within 2 years the iPad will a higher revenue and profit generator than the iPhone.
In all fairness, the ocean is just a giant toilet. :D
That will make it so much interesting for any kids and of course change the way some teachers teach.
But for all that to happen, and to see the real explosion in education use, Apple will probably have to offer the new iPad Mini with a starting memory of at least 32 gigs to make room for the books needed. And keep the price at $300.
The Retina Display will not be necessary.
Quote:
Originally Posted by juandl
The iBooks Author will make it possible to have the mew textbooks that will completely overhaul the way kids are taught in schools.
That will make it so much interesting for any kids and of course change the way some teachers teach.
But for all that to happen, and to see the real explosion in education use, Apple will probably have to offer the new iPad Mini with a starting memory of at least 32 gigs to make room for the books needed. And keep the price at $300.
The Retina Display will not be necessary.
That's ridiculous.
The biggest advantage to having the retina display is for reading purposes.
I also think that 16GB is sufficient for the necessary books.
What kid could require more than 6 text books at a time?
Aren't they all under 2GB each?
You're cutting corners in the wrong places.
If the iPad 2 is successful in education at $399 because of the price, what makes you so certain that the iPad Min at $299 wouldn't be successful.
And the "just wait long enough and the iPad 2 will be cheap enough to put into cereal boxes" argument is just plain silly. Yes, the price of the iPad 2 will drop over time, but it becomes more obsolete over time. At any given point in time, a 7" iPad Mini will be less expensive than a 10" iPad with comparable technology. Or, if you want to set a price point, a 7" iPad Mini will be more technologically advanced than a 10" iPad at any given price point.
Simply waiting for the iPad 2's price to drop doesn't cut it.
Yes, the iPad has the potential to change education. In particular, it has the potential to eliminate the "let's use 30 year old science books because it's too expensive to replace them" problem. It also eliminates the "I can't do my homework because I left my books at school due to their weight" problem. But that change requires Education departments who are intelligent enough to figure out that the world is changing.
Someone needs to look up the definitions for 'certainty' and 'definitive'. Unless they can prove that those schools would have bought more PCs if they hadn't bought iPads, it's not certain or definitive.
It's suggestive, but that's all.
Quote:
Originally Posted by jragosta
Yes, the iPad has the potential to change education. In particular, it has the potential to eliminate the "let's use 30 year old science books because it's too expensive to replace them" problem. It also eliminates the "I can't do my homework because I left my books at school due to their weight" problem. But that change requires Education departments who are intelligent enough to figure out that the world is changing.
It also lets the book publishers produce those ridiculous versions of classroom books that ignore science and history in favor of their requests and leave versions for other states that do not have those changes. Currently texas is able to use their size to force changes to books and then, since it's os expensive to produce so many versions of teh same book, those versions get sold to lots of other states too. If the books all go digital, you still have different eidting and people writing the copy that is used, but it is much less expensive than trying to produce 6 slight variations of the same book all in print.
You heard wrong. Or maybe that's what you deperately wanted to hear anyway.
True, although I'd much prefer for states to stop electing idiots to positions of responsibility and allowing their kids to be taught modern science.
Some "toy", isn't it?
All Jobs had to do was make a bigger iPod Touch, and he'd rule the world.
Done. And it's so simple, like all genius.
Anybody know of any independent reports on if iPads in school are helping improve grades or decrease school costs over time? I can't seem to find any good results while searching, I can only find a bazillion articles about how schools are buying up a ton of iPads (in the town next to us, each freshman is given an iPad that they will use for four years).
I think it's great that schools are using iPads, but I can't find any studies that say if they impact positively or negatively.
Quote:
Originally Posted by christopher126
Sheez! What a horrible chart! Looks like an excel creation....ever heard of Pages?
Try this.