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With competitors like Amazon selling usable tablets for as low as $49.99, the high-end tablet market may be evaporating.
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Nonetheless, after several quarters of the iPad’s decline, it seems fair to call the product “beleaguered.” What might reverse this trend? Apple has tried smaller iPads, larger iPads, and new software features, but nothing has done the trick. Still, Apple has an 80 percent share of the market for tablets selling for more than $200. That means that iPad revenue barely outpaced Mac revenue, at $6.7 billion. Year-over-year iPad revenues fell to $7.1 billion, a painful 21.2 percent drop from the year-ago quarter, on 16.1 million units sold, itself a 24.8 percent drop.
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Even the shiny new iPad Pro and new iPad-specific features of iOS 9, such as Split Screen and Picture in Picture, haven’t been able to rekindle sales growth.
IPad sales declines continue to trouble Apple.
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Given that iPhone Upgrade Program signups have to take place in person at a physical Apple Store, we suspect that it hasn’t been a big iPhone mover. Speaking of the iPhone Upgrade Program, Cook, when asked, said he was optimistic, but he was cagey about its actual performance. Although this is offset by the elimination of two-year contracts, lower monthly service fees, and iPhone leasing programs (suchĪs Apple’s iPhone Upgrade Program), sticker shock could have been a turnoff for buyers, especially during the holiday gift giving season. The former $199 starting price for the iPhone has been replaced by its true starting price of $649. iPhone Plan Costs in a Contract-Free World” (11 September 2015).
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Why has the iPhone machine seemingly ground to a halt, especially with Cook bragging about the highest number of Android converts ever (analyst Ben Bajarin estimates a figure of at least 30 percent)? The most obvious answer would seem to be the new pricing model for the iPhone in the United States, as explained in “ Comparing U.S. Cook noted that over half the iPhones sold
Given that Q1 encompasses the Christmas season, that number is troubling, but don’t panic yet: Apple still managed to sell 74.8 million iPhones in the quarter. The iPhone juggernaut has finally slowed, with a year-over-year revenue increase of just 0.9 percent, compared to the whopping 36 percent year-over-year revenue surge seen in Q4 2015 (see “ Apple Wraps up a Record-Breaking Year in Q4 2015,” 27 October 2015). However, currency fluctuations don’t explain the dips in revenue entirely, as overall unit sales were flat or down, as this chart illustrates: These supplemental data explain the currency situation, showing that $100 of Apple’s revenue outside of the United States in Q4 2014 translates to only $85 U.S. Along with the usual end-quarter summary, Apple also released a supplemental data PDF, an unusual move for the company. (Click the charts to enlarge them.)ĭespite the growth in China, CEO Tim Cook pinned Apple’s relative woes on the international market. In all, sales outside of the United States accounted for nearly two-thirds of the company’s revenues in the quarter. Those quarterly numbers were records, if just barely, but year-over-year revenues were actually down in the Americas by 4.1 percent and by 12.0 percent in Japan, although that was offset by a 13.8 percent year-over-year increase in Greater China, a market that has become increasingly important to Apple’s fortunes.
The company’s profits were up 2.2 percent and revenues were up 1.7 percent compared to the year-ago quarter (see “ Big iPhones Mean a Big Q1 2015 for Apple Apple Watch Date Revealed,” 27 January 2015). Reporting on its first quarter 2016 financial results, Apple has announced a net profit of $18.4 billion ($3.28 per diluted share) on revenues of $75.9 billion. #1621: Apple Q3 2022 financials, Slack's new free plan restrictions, which OS features do you use?.#1622: OS feature survey results, Continuity Camera webcam preview, OWC miniStack STX.
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