The June quarterly earnings of Apple came rather as a shock, than a surprise. With Apple declaring 9.2% decline in its iPad sales from a year ago.
Though, Cook seems to be pretty pleased with iPad sales. Calling it ‘satisfactory’ for the company, if not, for the analysts. Cook further explains that iPad has a user satisfaction-rate of up to 98%. Which very well explains why its ‘low sales’ can drag it to rock bottom?
So, what could be the reason for fall in iPad sales?
Weak US Market
As opposed to China and its Middle-Eastern friends, iPad has not seen a good run in U.S. Education-oriented countries adopt the iPad much aggressively to boost training and level-up education standards.
Google states that Apple sold 13 million iPad to schools directly, between April to June, in the same period, when it sold a million Chromebooks.
Another reason could be that the first generation of iPad users are still using the older version. This is because this version is working fine. They don’t need a ‘new one’. If Apple wants to spice-up its iPad sales, it would have to find a way to lure this section to the iPad store.
Not surprisingly, with manufacturers building low-cost tablets for Chinese markets, according to NPD Display Search, the iPad can experience its indirect blow. However, Apple need not worry about the cheaper sell-outs owing to price-hikes in its newer iPad models.
Opportunities for iPad
Apple is eyeing a partnership with IBM to seriously ‘up’ its iPad sales. It will penetrate deeper into the arena of enterprise apps. Apple believes that enterprise apps can benefit a lot from iPad’s bigger size.
In Addition, iPad could include a touch-ID to deliver a better user experience. It could also look into expanding the storage size from 32, 64,128 to offer much more to its existing users.
Apple must turn focus on improvisation in the existing iPad. Rather, than churning new, high-priced models each year. No matter how useful the gadget, users can’t be expected to shell out money, every year, on new, shinier versions.
Well, on the other hand, Cook is optimistic. He says, that ‘Apple continues to believe that the tablet market will surpass the [overall] PC market in size within the next few years.’ No doubt, the winds are blowing in favour of Apple. However, it needs to critically revise its game to stay afloat.
Opportunities for iPad Developers
iPad developers must treat this situation as an opportunity in disguise. The sudden drop in iPad sales has raised the same question again.
Is iPad development the same as iPhone development?
No, absolutely not. Its time we realize that our iPad is not a Smartphone with bigger screen and no calling features. The iPad has room for much more experimentation.
iPad also offers an extension into iOS’s app development platform. Morgan Stanley confirms that iOS apps generate about $1 per month of revenue.
Cook thinks that the tablet section of Apple is still in its growing stage. It is still under the strategic and inventive microscope of the company. Before, analysts tag it as anything good or bad, slowing or dead, it has to wait for Apple to disclose its agenda.
The good news is…
Apple isn’t ditching iPad, anytime soon
Tech-users today have a variety of options to be cajoled. With Apple, pacing up the #innovation and #utility ladder.
Meanwhile, the good news is that Apple has once-again nailed its art. With a 15% high $10.09 a share, Apple has beaten analyst expectations.
The company released its fiscal second-quarter earnings report stating revenue of $45.6 billion and a net profit of $10.2 billion. Way double than 2013’s; $43.6 billion in revenue and $9.5 billion in net profit.
It seems like tablet-lovers will have to be patient with iPad and Apple.