Cook says tablet sales slump is 'speed bump,' looks toward future growth
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.
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
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
Comments
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.
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?
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
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.
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!
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.
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.
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'?
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
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.
It's just the thing for when you're drinking a nice cup of Earl Grey tea!
Originally Posted by sog35
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.