October 20, 2014

iPad Losing to More Affordable Tablets

apple store photo

The iPhone has exceeded sales expectations this quarter. The iPad, not so much. If you’re in the market for a tablet for business there are many other options to consider these days and some a bit easier on the budget.

iPhone Sales Strong but Tablet Sales Slipping

Apple shipped 31 million iPhones for the second quarter, reports All Thing D. That’s less than the 37.4 million the company says it shipped in the first quarter of 2013 but more than the 26 million it shipped last year around this time.

Sales of the company’s iPad tablet, by contrast, seem to definitely be slipping. This past quarter, Apple reported shipping just 14.6 million of the devices, a steep decline compared to the 17 million iPads shipped by the end of the second quarter in 2012.

Causes for iPad Decline

One possibility is that sales are tapering off as customers wait for the next generation of iPads expected in September. If so, Apple could see an even bigger drop in sales next quarter, reports Max Wang of DigiTimes.

Of course, another possible explanation is that the iPad is simply facing competition from more affordable tablets, reports CNET. In fact, one industry analyst, Glen Yeung of Citi Research, projects iPad sales will remain below the industry average.

The iPhone Could Also be At Risk

And though iPhone sales still look strong, there are signs here too that competitors are making inroads.

The Wall Street Journal reports Samsung’s smartphone revenue eclipsed earnings from the iPhone for the first time this quarter. The Korean company made $5.2 billion in second quarter earnings off devices like the Galaxy S2 while Apple made just $4.6 billion in smartphone sales.

Apple Store Photo via Shutterstock

9 Comments ▼

Joshua Sophy - Staff Writer


Joshua Sophy Joshua Sophy is a staff writer for Small Business Trends, covering technology and business news. He is a journalist and editor with 15 years experience in media. A former newspaper reporter and editor, Joshua also serves as President of the Board of Directors of a curling club and is editor of a regional newsletter focused on the sport of curling in the Eastern U.S.

9 Reactions

  1. Joshua: Do you think that I will be able to get a good deal on the iPad Mini in the near future? ;)

  2. Joshua,

    Especially here in Asia, there are numerous brands offering tablets which cost (way) less than iPad offering similar feature. Perhaps Apple should also play in the low-end market?

    • Ivan: I think it would be a mistake by Apple to “downgrade” to the low-end market. It could hurt their premium brand status. What they could do is to come up with a new segment of products and set a different price level on it. Apple has being the leader of innovation, not of price battles. I have an idea of new product that they could “corner”, if they do it right… ;)

  3. Ivan: I think that could be a nice introduction to the world of apples! ;) If this rumor is correct, do you think that the main competitor is Nokia’s standard phones?

  4. How has the app store sales been? I think that Apple is the leading smart phone brand on certain markets and circles of customers. Their integrated platform will win in the long run. With the Android phone you have several different brands, e.g., Samsung, Motorola (owned by Google), HTC, LG, Sony (Ericsson) and they are competing against each other.

  5. The reason behind this drop in sale is simple. Tablet price is getting lower day by day compared to the iPad price. The features are almost similar and so people really like to experiment with a tablet rather than an iPad. Though it would be hard to predict how tablet sales would go in the coming years, but iPad prices must be lowered a little if it’s to thrive in the market.

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