While most people like to focus on the iPhone when it comes to Apple, it’s the iPad that’s perhaps the more intriguing story.
Philip Elmer DeWitt has gathered analysts’ predictions for the iPad for the March quarter, and the consensus sees Apple selling 19.33 million iPads. If accurate, that’s a 0.7 percent drop on a year-over-year basis.
The iPad was supposed to be the second strong leg of Apple’s business. It’s definitely a solid business that nearly any company would want, but it has seen a startling decline in its growth rate at an earlier-than-expected stage in its life cycle.
Why has the iPad hit a wall? We’re not sure. Hopefully, an analyst asks Tim Cook about it on the earnings call and he gives a good, insightful answer. Last quarter he was asked about it, but brushed off the question.
If we had to guess, we’d say it’s a mix of things.
Pricing: When the iPad was released, it cost $500, and Apple’s rivals couldn’t compete with that number. Then, very quickly, they figured out how to lower their prices. Amazon was the first to really get aggressive on price. It sold a 7-inch Kindle Fire for $199 in 2011. That Fire is now $119. (It also offers an 8.9-inch Kindle Fire for $339.)
Usage: The iPad is the best tablet for surfing the Web, using apps, and getting stuff done. But the other, cheaper tablets are good enough for all that stuff. For what a tablet does, the low-cost tablets are fine.
Life cycle: Unlike the iPhone, the iPad doesn’t seem to be upgraded every two years. As a result, sales growth is going to be weaker.
Too much, too soon: The iPad sold in giant volumes early in its life. That’s created tough sales comparisons, and too much hype for the future of the product.
See also: Apple’s Future Is in These Six Areas
TODAY IN SLATE
I was hit by a teacher in an East Texas public school. It taught me nothing.
Chief Justice John Roberts Says $1,000 Can’t Buy Influence in Congress. Looks Like He’s Wrong.
After This Merger, One Company Could Control One-Third of the Planet's Beer Sales
Hidden Messages in Corporate Logos
If You’re Outraged by the NFL, Follow This Satirical Blowhard on Twitter
Giving Up on Goodell
How the NFL lost the trust of its most loyal reporters.