“This Tuesday in Chicago, Apple unveiled its new, most inexpensive iPad model geared primarily towards K-12 students,” D.M. Martins writes for Seeking Alpha. “Contrary to the more pessimistic projections, including my own that predicted Apple’s tablet sales fizzling out over time as the iPods have, the iPad is in the early stages of an unexpected comeback… Apple’s device has separated itself from the crowd and now controls nearly 30% of the market (vs. only 22% in calendar 3Q16).”
“Apple’s fortune began to change in calendar 2Q17,” Martins writes. “Not coincidentally, that [March 24, 2017] was exactly when the company introduced its low-end, $329 iPad that allowed Apple for the first time to compete in the mid-tier space and fight for pocket share of budget-conscious consumers.”
MacDailyNews Take: That $329 iPad was a really great idea!
iPads are too expensive relative to the perceived competition and Apple has obviously done a piss-poor job of marketing the iPad family (read: clearly explaining to the hoi polloi why they want an iPad over an Amazon or other Android tablet).
Sticker price is the biggest reason why iPad sales struggle to return to growth (the next biggest reason is that iPads’ useful lives last so damn long, they’re not rapidly replaced).
We would have purchased iPads for family members this year if they had been updated as they should have been for the holiday season and if the prices were a bit more palatable. Yes, we know what an iPad offers. Yes, we know they’re worth the money Apple’s asking for today; even being last year’s models. But, Apple should really do the math and consider making certain hardware more affordable in exchange for the backend revenue and increased mindshare and market share that will deliver.
For the same reason – mindshare – Apple should make their own Apple displays, even to the point of taking a loss of each and every one, so that other companies’ logos on frankly ugly products that do not match Apple design sensibilities are not in users’ faces all day long. That’s not a difficult concept to grasp; even an inveterate beancounter might be able to get it. — MacDailyNews, January 6, 2017
“I would characterize the spike in iPad sales early in 2017 as an expansion in Apple’s total addressable market. Instead of the high-end tablet that only the more affluent users could afford, the Cupertino company finally had something compelling to offer to a larger chunk of the tech gadget consumer base,” Martins writes. “I doubt that Apple’s launch of its new iPad will do much to increase revenues or earnings substantially in the foreseeable future. But at the same time, I believe that the new product can only be a positive catalyst…”
Read more in the full article here.
MacDailyNews Take: Outside of schools, we know a lot of kids who’d love to have a new iPad at home, especially one that now works with Apple Pencil!
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