The iPad has had five consecutive quarters of negative shipment growth, and according to Apple’s supply chain, that’s not changing any time soon!
According to a new report coming out of Asia, Apple’s supply chain manufacturers expect iPad shipments to fall another 20 percent on-year in 2015 — and they’re pinning the blame on the increased demand for plus-sized smartphones.
The report notes that Apple’s suppliers are hurting from the collapse in the company’s iPad business. In particular, backlight and LCD supplier Radiant Optoelectronics saw a 37.2 percent drop in revenue in the first three months of 2015, while touch panel maker TPK witnessed a drastic 67 percent decline in its tablet production business — falling from 10 million the previous quarter to just 3 million this one.
If it really is the availability of larger phablet-sized phones which are hurting the iPad business (and this isn’t the first time we’ve heard that!), hopefully a larger 12.9-inch iPad Pro later this year could reverse that decline by further differentiating the iPad and iPhone product lines.
Interestingly, today’s report suggests that supply chain makers are expecting only a new 7.9-inch iPad, along with the rumored 12.9-inch model, in 2015. Since the 7.9-inch tablet is the iPad mini, this means the iPad Air would be replaced by whatever Apple decides to name its new large-screen device.
Personally, I don’t buy it. As seen by last year’s refreshes of both the iPad Air and the iPad mini, the Air remains Apple’s focus. If we lost either, I’d expect it to be the smaller mini, although I think Apple will likely keep all three.
Source: Digitimes
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
5 responses to “Insiders expect iPad business to continue to tumble in 2015”
As anything with Apple, tech pundits always assume the worst. It will just be up to Apple to prove otherwise. As long as the older iPads continue to work well for consumers, there won’t be many upgrades forthcoming. It’s somewhat understandable. The old adage is if it ain’t broke don’t try to fix it. Apple built its iPads to last and last they do. Apple will simply have to eke out new users and I think all the low-hanging fruit is gone. Apple is going to try to sell iPads to Japanese senior citizens and that will generate some sales. I wonder if Apple counted on selling iPads to educational institutions but that seems to have failed miserably. At least iPad sales were good while they lasted but nothing lasts forever. I can’t even imagine what it would take to convince consumers to upgrade their older iPads.
they need to drop the price first of all, that would help.
I’d be sorely tempted to buy the rumored iPad Pro, if only for reading comic books and sheet music in PDF form.
It is still the best selling tablet, but agree that as Apple make great products that last, so there is less reason to upgrade. Personally I think once the 2 and 3 year cycles come around you’ll see the same people buying new ones.
I have an iPad 2 that’s what 3 or 4 years old? It worked just fine until about a year ago when Apple asked me to upgrade to ios7 I think and now it barely works at all. Surfing the web is an exercise in patience.