Apple’s iPad business, long thought to be the future of the company, isn’t acting like it. In the company’s June quarter, reported today, iPad sales declined on a year-on-year basis for the second quarter in a row. That’s a big change from a couple of years ago, when iPad shipments were more than doubling.
Why? Here are some good observations from Apple’s earnings report and call.
Apple was supposed to win in USA, iPad, struggle to grow in iPhone, BRIC (esp China). It’s actually going exactly the opposite.—
Benedict Evans (@BenedictEvans) July 22, 2014
Apple said iPad sales grew 64% year-over-year in the Middle East, 51% in China, and 45% in India. Sales in developed markets were relatively weaker.
Seems to me the future of the iPad is to shrink it to 5.5 inches, double the price, and sell through carriers. Also call it an iPhone.—
Farhad Manjoo (@fmanjoo) July 22, 2014
Apple’s reportedly forthcoming, larger iPhone models could even further weaken the iPad business.
Basically, you just don’t need iPhone, iPad, and Mac… pick your two.—
Henry Blodget (@hblodget) July 22, 2014
Meanwhile, Apple says its Mac business actually did well in the US—and global Mac sales grew almost 20%.
Apple continues to grow in the parts that were supposed to be tough and slow down in the parts where it was supposed to be winning—
Benedict Evans (@BenedictEvans) July 22, 2014
How might the iPad find growth? Apple CEO Tim Cook (again) talked up a new partnership with IBM, which could potentially juice iPad sales to corporations.
Tim Cook on Apple’s iPad Declines: ‘This Isn’t Something That Worries Us’ on.wsj.com/WyNSsj via @WSJD—
Daisuke Wakabayashi (@daiwaka) July 22, 2014
Apple’s real iPad problems are the iPhone and Mac
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