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Death Reports Of The Apple iPad are Greatly Exaggerated

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Death Of The Apple iPad Are Greatly Exaggerated
 
 

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Death Reports Of The Apple iPad are Greatly Exaggerated

Apple’s second quarter results were announced today by CEO Tim Cook (Mark Rogowsky has more coverage here on Forbes). As part of the earnings call, Cook talked about the sales and acceptance of the iPad. Sales are lower this quarter than the same period in 2013, with Apple selling 16.3 million iPads compared to last year’s 19.5 million, but before you start thinking about the death of the iPad, there are some mitigating factors to consider.

The main one was highlighted by Tim Cook. By reducing the volume of iPads in the channel inventory, the drop in sell-through was limited to just 3%.

This is classic Tim Cook – reducing the time from the factory to the consumers hands. There is more margin to be made by reducing the time that an iPad is shipped but not sold. That does require an adjustment in the channel, and it makes sense to do it in a quiet quarter, away from the Q4 Christmas sales and Back to School offers in Q3.

Thanks to the two-year contracts offered by most networks, the iPhone is not only a huge seller (after all, the carriers have customers who want to buy the iPhone), but the smartphone also has a built-in obsolescence. When twenty-four months tick over, customers go looking not just for a new deal, but a new smartphone – which is more than likely a new iPhone.

The iPad does not have that advantage. After two years, your average iPad is still in active service. If someone does decide to look for a replacement, the older iPad is more than likely going to be passed on around family and friends in a way that is discouraged by the carriers with an older iPhone. iPads do not have a natural moment in the life cycle that generates an ‘upgrade now’ event.

You also have to look at the tablet market as a whole. Chitika’s look at the North American tablet market is a good place to start. While the headline news is Samsung overtaking Amazon, other indicators point to the dominance of the iPad. NPD reports the iPad share in the US stands at 46%. With 77% of tablet based web traffic coming from iPad devices, Chitika also backs up the assertions of Cook on today’s earnings call that Apple’s focus with the iPad is on penetration alongside the speed of the sales.

Cook stated that the iPad has sold twice as many units as the iPhone has done over a similar period from launch. According to Apple’s figures, 95% of tablets in education are iPads, and 91% of enterprise tablet activations are iPads. As for customer satisfaction, 98% of customers are satisfied.

Add together all the Android tablets out there (remembering that a number of them will be specialist tablets designed for niche roles where the iPad is not suitable) and you still don’t overhaul the iPad in terms of usage, and you’re probably only matching its share when you consider outlying tablets powered by alternatives such as Windows 8 prevent either Android or iOS taking more than 50% of the worldwide market.

In Cook’s own words “…when I look at all of these, I feel great. That doesn’t mean that every quarter is going to be a number that everybody’s thrilled with. But over the arc of time, the iPad has a great future.”

To me these numbers do not suggest that Apple is somehow losing the tablet market. They say Apple is comfortably in command of a tablet market that could be approaching the end of the hyper-inflation period of adoption, and from now on the number of tablet users will continue to grow, but at a slower rate.

Everyone who lusts after a tablet… has one. Everyone who thinks they could us a tablet in their life… probably has one now. With longer replacement cycles and an install base that is not growing as rapidly as the smartphone market, the slowing sales of the iPhone points to a saturating market.

Where’s the hockey stick growth? Not in tablets; not in desktop or laptop PC’s; growth belongs to the smartphone. null , but it’s unlikely to deliver the same stellar sales as the iPhone.

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Update: 11

Xiaomi, the Chinese company behind the Mi Pad, announces iOS-like Android skin

Source: 9to5Mac

Not content with a blatant copy of the iPad mini and a smartphone called the Mi Phone, Xiaomi’s latest Android overlay – MIUI 6 – bears more than a passing resemblance to iOS 7. The flat icons, the icon screens scrolling above the fixed app tray at the bottom, the calendar, calculator, compass …  Xiaomi global VP and former Google exec Hugo Barra has said previously that suggestions that the company copies Apple’s designs are “sweeping sensationalist statements” and that similarities ...
Source: 9to5Mac   Full article at: 9to5Mac 3 days ago, 6:00am CDT
 

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Update: 10

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Source: MacMegasite

Ozark, Missouri – Spend Stack, Dreaming In Binary’s debut iOS app, will release Thursday, August 21st. Spend Stack makes shopping lists efficient by automatically detecting user’s local sales tax rate within the area. Each list, which are called stacks, can be tailored for any scenario. Users can selectively apply tax to items, categorize them, or just make a quick stack to see how much eating out will cost at a resta ...
Source: MacMegasite   Full article at: MacMegasite 3 days ago, 6:00am CDT
 

Update: 8

Pokémon is on the way to iPad! Well, the other one…

Source: Fifth Gear

Pokémon fans rejoice: If you’ve been itching to take your Pocket Monsters on the road on your iPad, you’ll soon be in luck! Only it’s not quite the same Pokémon game you’ll find on your Nintendo 3DS, as The Pokémon Trading Card Game on the way to Apple’s digital slate! Ready to relive your childhood with digital Pokémon cards? Pokémon is on the way to the iPad, according to Twitter user TheJWittz. A version of the Pokémon Trading Card Game can be se ...
Source: Fifth Gear   Full article at: Fifth Gear 3 days ago, 5:15am CDT
 

Update: 7

Pokemon Game Coming to iPad

Source: ign

It looks like the Pokemon Trading Card Game Online will be coming to iOS. "The People's Nerd" Josh Wittenkeller, YouTuber and hardcore Nintendo fan, posted a screenshot to his Twitter feed showing the game running on an iPad. Sure, it probably isn't the traditional RPG Pokemon experience fans may have been hoping to someday see land on an iOS device, but it's also not the first time The Pokemon Company International has brought the world of Pokemon to the iOS ...
Source: ign   Full article at: ign 3 days ago, 1:25pm CDT
 

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Update: 3

The Pokémon Trading Card Game is coming to iPad

Source: Eurogamer

The Pokémon Trading Card Game is coming to iPad later this year.The digital version of the oldschool physical card game has been available online for some time, but the upcoming iPad version made its debut at the Pokémon World Championship this weekend where Pokémon enthusiast Josh Wittenkeller snapped a picture of it on Twitter.This marks The Pokémon Company's first full game on an iOS d ...
Source: Eurogamer   Full article at: Eurogamer 5 days ago, 11:49pm CDT
 

Update: 2

Briefly: TweetDeck 3.8.4, BSpoke Kickstand case for iPad Air

Source: MacNN

TweetDeck by Twitter has received an update for OS X. The app is designed for publishers, marketers and power users of Twitter, and features a customizable layout for the social networking platform. Tweetdeck v3.8.4 offers the ability to find locally trending topics for Regions and Cities, adding a column based o ...
Source: MacNN   Full article at: MacNN 5 days ago, 9:51pm CDT
 

Update: 1

​Pokémon Trading Card Game Online coming to iPad later this year

Source: Engadget

Remember that Nikkei report that said Nintendo was eyeballing mobile devices? The one that Nintendo immediately denied? It might be true after all -- sort of. The Pokémon Company has confirmed that the Pokémon Trading Card Game Online ...
Source: Engadget   Full article at: Engadget 5 days ago, 9:19pm CDT
 

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