More evidence that Apple’s iPad sales pause is just a speed bump

“Throughout 2014, Apple has been trying to shake the negative storyline among investors that its iPad business is struggling,” Evan Niu writes for The Motley Fool. “Year-over-year unit growth for the company’s tablet sales dipped into negative territory for the first time last year, and Apple has struggled to buck that trend.”

“Tim Cook has preemptively addressed concerns during earnings calls, acknowledging that the Street was expecting more when it came to iPad unit sales. Short-term nuances like changes in channel inventory and product cycle timing technically hurt Apple’s figures, but Cook argues that the market’s long-term upward trajectory remains intact,” Niu writes. “Market researcher NPD just put out a report indicating that tablet ownership in the U.S. continues to rise, and the broader product category continues to grow “at a faster rate than that of any other connected device.””

“The iPad has easily been the most quickly adopted product category compared to the iPod and iPhone before it. You may remember those product adoption curves you learned about in college. Led by iPads, tablets are progressing through the adoption phase at a breathtaking pace,” Niu writes. “Inevitably, the market will progress into the maturity phase, where most sales come in the form of upgrades. It would be premature to characterize the overall tablet market as entering the maturity phase now, but there is naturally a good portion of upgraders already. Apple’s recent ‘weakness’ in iPad sales is a function of how quickly the product was adopted, which effectively front-loaded its results toward the earlier years.”

Much more in the full article here.

8 Comments

  1. “Evidence” is supposed to mean “evident”. The root word of both is “vis” or “vid” (to see).

    The headline should say “Analysis indicates”, not “Evidence”.

    “Speed bump” has a short-term connotation. The author does not substantially discuss timelines going forward.

    Finally, as with all Motley Fool articles and Apple, there’s some phony click-bait at the bottom.

    Don’t bother reading the MF article.

  2. The IBM Mobile First could put a big boost in iPad sales. Giving IT tools Apple has never provided will open up large scale adoptet. People seeing iPads in business environments is great free advertising for Apple. The big question is what category a iPhone 6 plus is. If it is a tablet than iPad sales and the tablet market will rises. However that could hurt iPhone sales and decrease it’s market shear; especially with Google’s One expandin the smartphone market at the expense of feature phones. If the iPhone 6 plus is a smart phone then the tablet market will not increase much because (IMHO) the iPad mini will loose a lot of sales. We will see how IDC spins it.

  3. IPad’s last longer and have a longer life cycle before someone is motivated to upgrade. Also, with schools districts like LA buying thousands and then not using them, winds up saturating the market with iPads as well..

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