Sales for the Apple Inc. (NASDAQ:AAPL) iPad have been declining significantly this past year. There were even theories that sales for iPad tablets would continue to grow and possibly surpass sales of the iPhone. The main reason for the decline is the fact that overall sales for the iPad (including the iPad Mini) have come to a halt.
Apple iPad sets quality bar for lower-priced alternatives
In the June quarter, Apple Inc. (NASDAQ:AAPL)’s iPad sales dropped by 14% year over year. Even after channel inventory adjustment, iPad Sales were still decreased by 3% year over year. The tablet market is expected to grow to 50% this year.
According to Business Insider, “Part of the issue is a tough comparison with last year: The iPad Mini launched in the June quarter last year, and this triggered a nice jump in iPad sales in that quarter–to 17 million units from 12 million in the prior quarter. That set a high bar for this year’s June quarter. But that’s not the whole problem. The larger problem, arguably, is that Apple Inc. (NASDAQ:AAPL) is trying to maintain premium pricing in a market in which competitors are increasingly selling high-quality iPad alternatives for significantly lower prices.”
Apple striving for the best, not the most
Despite the major decline in sales, Apple Inc. (NASDAQ:AAPL)’s iPad and iPad Mini are still the best tablets on the market. These tablets are also still leading the market. One reason for the decline in Apple Inc. (NASDAQ:AAPL)’s iPad sales is the price. Apple Inc. (NASDAQ:AAPL) makes most of their profits by charging relatively a high price for the iPad. The company’s top competitors like Amazon and Google get most of their profits from mobile applications and media, this allows them to sell their tablets at a lower price point.
However, Apple Inc. (NASDAQ:AAPL) is more about selling the best products rather than the most products. Their pricing points reflect that clearly. Since the iPad maker has kept the majority of their focus on their mobile operating system, they are losing sales that are valuable.