The tablet market has witnessed the launch of a slew of new products with significant advancements in recent years. Amidst this, the iPad seems to be losing its once-dominant stance. According to Apple’s statistics, the latest quarterly revenue for this product line reached only $5.56 billion, a 17% decrease from the previous year and falling short of analysts’ predictions.
Gene Munster, Executive Director of Deepwater Asset Management, states that iPad sales have “stagnated over the past three years.” Dan Ives, Executive Director of Wedbush Securities, estimates that 70% of iPad users have not upgraded their devices in four years, indicating a longer usage cycle compared to iPhones.
So, why are consumers giving the cold shoulder to the new iPads? On Reddit, numerous users of the 2018 iPad Pro shared that they have no plans to upgrade to the newest model. Some explained that their current iPad still works perfectly fine and meets all their needs. Others mentioned that they haven’t come across any compelling apps that would force them to upgrade to the newer iPad.
“I used my 2018 iPad Pro until it broke last month. I’ve ordered the 2024 iPad and plan to use it for at least the next six years,” shared one user.
However, experts believe that the superior processing power of the new M4 chip—hailed by Apple as a “powerful AI chip”—could boost iPad sales in the coming months. Apple’s CEO, Tim Cook, has stated that artificial intelligence (AI) presents a “great opportunity for Apple’s products.” As a result, the newest iPad is anticipated to be compatible with all AI updates that the company may announce at the upcoming Worldwide Developers Conference.
Apart from the individual consumer market, Munster points out that education remains the most promising sector for iPads. The COVID-19 pandemic fueled the demand for online learning, contributing to the surge in iPad sales in 2021. Additionally, Apple has introduced various attractive programs for students.
Introduced in 2010 with a price tag of $500, the iPad created a global frenzy. Over the years and through multiple iterations, Apple has refined the product line, incorporating superior features that cater to diverse user needs, from children and content creators to enterprises. The latest iPad boasts a sleek design and a stunning OLED display. However, owning this premium device comes at a cost—a hefty price tag of up to $3,000.
While iPad sales have shown signs of stagnation in recent years, Apple’s leadership remains optimistic about its growth potential. During the Q2 2023 financial report announcement, CFO Luca Maestri expressed Apple’s expectation for double-digit growth in iPad revenue for the current quarter. However, Gene Munster acknowledges that “it’s a long and challenging road ahead for the iPad.” Will Apple’s efforts be enough to reclaim the iPad’s former glory? Only time will tell!
