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Why slowing iPad sales didn’t surprise Apple and shouldn’t surprise you

“Here’s the headline: ‘Apple only sold 13.2 million iPads in its fiscal third quarter,'” Kevin C. Tofel reports for Gigaom. “Cry me a river.”

“Yes, the quarterly sales are down from the prior three months and the year-ago period. Apple sold 16.3 million iPads in the first three months of this year and 14.6 million in the fiscal third quarter of 2013,” Tofel reports. “Look at the iPad sales data since Apple’s tablet debuted and you can a broader view of the same thing: The iPad sales growth rate overall has slowed of late.”

“I don’t think this is cause for alarm. Expecting iPad sales growth to mirror that of the iPhone, which is still on a relatively stronger upward direction, is unreasonable for a number of reasons.,” Tofel reports. “Most people don’t upgrade their tablets as often as they upgrade their phones. While there will always be some people who upgrade tablets as often as they change handsets — OK, guilty as charged here — most people don’t fit that mold.”

“As noted by Founder and Chief Analyst at Jackdaw Research, Jan Dawson, who expects a big upgrade cycle for the iPad, Apple’s tablet line is ‘generating revenues of $5-10 billion per quarter, or an annual run rate of about $30 billion, bigger than McDonald’s or Time Warner,'” Tofel reports. “Excuse me if I don’t shed any tears for Apple’s $30 billion iPad problem.

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

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