Apple has postponed the production of the bigger-screen iPad, according to a report from Bloomberg. Often dubbed the iPad Pro, the production of this still-to-be-announced tablet has been delayed owing to certain supply issues with the display, says the report, citing sources familiar with the company’s plans.
Declining iPad sales
Apple’s much-awaited 12.9-inch screen tablet was supposed to go into production this quarter but now has been pushed back to September. The iPhone maker has been in the news for supposedly working on a larger screen iPad. A 12.9-inch iPad could attract users of Apple’s Macintosh and increase sales of its tablet line.
We wrote about Ben Graham's activism at northern pipe line, but there are other interesting stories involving the father of value investing Value investing and activism go hand-in-hand. Benjamin Graham, the godfather of value investing, discovered how important it is to incorporate activism into a value strategy relatively early in his career, a strategy that Read More
Apple’s current iPad Air 2 has a screen display of 9.7 inches, while the smaller iPad Mini 3 features a 7.9-inch screen. The iPhone and the iPad together have contributed two-thirds of Apple’s overall sales previously. However, the iPhone is undoubtedly the top contributing category for Apple, while iPad sales are dropping.
Over the past four quarters, sales of the 9.7-inch iPad have dropped as consumers prefer large screen smartphones, including Apple’s own iPhone 6. During the first fiscal quarter, iPad sales came in weak as tablet unit sales dropped 18% to 21.4 million, marginally below analysts’ predictions of 21.5 million.
Why Apple’s iPad sales are declining
Apple launched its latest tablets, the iPad Air 2 and the iPad Mini 3, in October, but analysts believe the changes made such as faster processors are not good enough to attract buyers. Previously, Apple CEO Tim Cook acknowledged that the popularity of the phablet may be partially to blame, as the iPhone 6 Plus is eating into sales of the iPad. The CEO said when he thinks from a long-term point of view, the iPad business looks great.
According to CNET, a decline in iPad sales can be attributed to a number of other factors as well, such as users giving away their old tablets to the friends and relatives, which cuts on demand for the new tablets. Also the upgrade cycle of the iPad is longer than that of smartphones. Another reason is that Apple has not tweaked the features of the iPad significantly, letting down ardent fans.