“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!
SEE ALSO:
New iPad’s enemy isn’t just Chromebooks, it’s the U.S. public education system – March 28, 2018
Logitech’s Rugged Combo 2 keyboard and case for Apple’s iPad has its own smart connector – March 28, 2018
Apple’s new 9.7-inch iPad offers 2GB of RAM, 2.2 GHz A10 processor – March 28, 2018
How Apple lost its place in the classroom – March 28, 2018
Apple bids for education market with new software, new iPad – March 27, 2018
Apple takes aim at Google Chromebook with $299 iPad with Apple Pencil support for schools – March 27, 2018
Did Apple do enough to grab back education market share? – March 27, 2018
Apple unveils new 9.7-inch iPad with Apple Pencil support starting at $329 – March 27, 2018
Apple unveils ‘Everyone Can Create’ curriculum – March 27, 2018
Apple’s iWork update brings drawing, book creation and more to Pages, Numbers and Keynote – March 27, 2018
MacDailyNews presents live coverage of Apple’s March 27th ‘Field Trip’ event – March 27, 2018
Google’s Chromebooks are still spying on grade school students – April 21, 2017