Why iPad could put a damper on Apple’s Q314 earnings

“In less than two weeks, Apple will release fiscal third-quarter results,” Evan Niu writes for The Motley Fool. “The summer months usually see a slowdown in demand, especially as consumers begin delaying purchases in anticipation of upgraded products that are usually launched in the fall.”

“iPad unit sales in the March quarter were a little soft. Fortunately, the overwhelming strength of the iPhone more than offset that weakness,” Niu writes. “Still, it was only the second time that Apple has ever reported a year-over-year decline in iPad unit sales. Can the iPad stage a comeback or will it be a drag?”

“It’s worth remembering that the iPad is Apple’s most successful foray into a new product category to date, easily outpacing iPod and iPhone adoption. After blistering growth for years, perhaps demand is just taking a breather before resuming its upward course,” Niu writes. “There probably aren’t a lot of reasons to expect much iPad upside this quarter. Hopefully, the iPhone can carry the show.”

Read more in the full article here.

5 Comments

  1. The only threat to Apple’s short term financial picture are the rumors that new devices (i.e. the iPhone 6, the iWatch and the Apple TV) will not make their expected early fall launch dates due to design/supply chain issues and will be pushed back to December/early January. And even that is short term, because it will simply mean that Apple will have a huge 1st quarter 2015. Meanwhile, the new offerings from Apple’s competitors (Android L, Android Wear, Android TV, Amazon Fire Phone etc.) have failed to move the needle the way that the iWatch, iPhone 6 and new Apple TV will.

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