Apple yesterday announced its Q2 2014 earnings. iPad sales were down almost 3M units from Q2 2013. According to Macworld.com:
Apple sold 16.35 million of the tablets this past quarter, compared to 19.48 million in the second quarter of 2013. Revenues from the iPad fell as well, from $8.7 billion to $7.6 billion. The iPad had a smaller impact on Apple’s revenues, too, accounting for 17 percent of sales, compared to 20 percent last year.
I have some thoughts on why that may have happened.
Last year, Apple announced the iPad Air and the iPad mini with Retina Display. While both have the new A7 chip, of the two I think the iPad mini with Retina Display is the more tempting upgrade if you own a previous gen iPad. This is because the previous mini did not have the retina display, and was a gimped model with a lower-specced processor. The new mini that actually had feature parity with the larger iPad was a nice upgrade.
The 64-bit processor in the new Air (and mini) is a great upgrade, but I don’t think enough people were taxing their iPads to the point they felt needed a faster processor if they already had a retina iPad. I’m not sure there is even enough RAM on the iPad to fully take advantage of the 64-bit chip. It also doesn’t have the Touch ID sensor, either, which could be a factor.
So, I think a lot of the sales are people who are probably very happy with their iPad 3 or 4. I know I am. I need the iPad with the largest memory, so I’m on a 2–3 year upgrade cycle on my iPad.
Jean-Louis Gassée had a great article called: The iPad is a Tease
Despite the inspiring ads, Apple’s hopes for the iPad overshot what the product can actually deliver. Although there’s a large numbers of iPad-only users, there’s also a substantial population of dual-use customers for whom both tablets and conventional PCs are now part of daily life.
I see the lull in iPad sales as a coming down to reality after unrealistic expectations, a realization that iPads aren’t as ready to replace PCs as many initially hoped.
Gruber has his take here.
We might have overestimated the eventual role of tablets and underestimated the role of phones — and the whole argument is further muddled by the industry-wide move toward 5-inch-ish phone displays.
I’m not sure about this. A larger screen iPhone is certainly appealing to me. It would take place for a lot of the tasks I would consider a mini for, as long as the resolution also increases – I’d like my Kindle documents have more words on the horizontal size.
I wrote earlier this year that 2014 is the year of the iPad for me. That is largely playing out. Rarely does my MacBook Pro leave the house. My next OS X device will be an iMac. As iOS continues to mature, I will be able to put off buying a new Mac as long as this one keeps running. The largest barrier to going iOS all the time is games, and GigaOM’s WordPress install. Other than that, when I leave the house these days, I only need my iPad. I can write, post to this site, surf, read, and even play some games (just not World of Warcraft).
I’m expecting to get another full year out of my iPad 3. By September 2015, this one will be getting long in the tooth and require replacement. I expect that to be why iPad sales are down. Now that the product has matured, there’s no need to upgrade every year.