iPad Pro and its influence on iPad sales
iPad Pro: Apple Inc shifted about 50 million units of its iPhones, making more than $200 billion in cash throughout the world, in the first three quarters of 2015. Its revenues are fuelled partly by Chinese consumers, as about 25% of all Apple revenues come from vast Chinese market. And we don’t take into account iPhone 6s and iPhone 6s Plus, as they were launched after the third quarter ended.
Apple’s Macs however are responsible for an important part of the total value, as Macs broke the record with their 5.7 million Macs sold during the last quarter. And Apple’s other products are also doing rather well, as their sells grow steadily. And “other products” include Apple Watch, Apple TV, Beats, iPods and so on.
However, the Apple’s iPads experienced a huge drop, as less than 10 million of iPads were sold, that’s about 20% less than in the first three quarters of the previous year. Well, iPads are still being sold for more than $4 billion per quarter. The bad news is that iPad shipments have dropped below 10 million for the first time since 2011! Curious fact: for the first time iPad sales generated less money than Mac sales. True, the iPad is a rather seasonal product, as iPad Minis are a very nice X-gift gifts. But altogether Pad’s market is being squeezed by more capable smartphones, laptops and phablets. Besides, iPad’s generations aren’t hugely different one from another. They are also relatively expensive.
Will the new iPad Pro change all that? Hardly… the new iPad Pro is placed in an expensive line of Apple’s products. Thus Apple will need to make effort to sell it. Even when enterprises will love it. But not the average person (and average consumer). So iPad sales are unlikely to start soaring in 2016.
But still millions will buy iPad Pro just to become friends with tablets for the first time in their lives. In fact, many consumers come on board of an Apple ship with its iPad products. But once on board people switch to iPhones or MacBooks. Well, Apple is not unhappy with that, as it would much rather sell you a iPhone 6S Plus 64GB or a MacBook than its iPad Air 2 or an Pad mini 2. The electronic giant would only be unhappy if people were switching to Android or Windows or Android. But this will not happen at a large scale in the near future.
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iPad Pro is not bad, but smartphones just keep getting better… Source of the photograph: Apple.com