Some observers may have wondered why Apple would continue to sell the iPad 2 for $399 after announcing the iPad Air and Retina iPad mini on Tuesday. The answer, according to new research from Consumer Intelligence Research Partners, is because customers are still buying the two-year old tablet.
The iPad 2 accounted for some 22 percent of iPad sales in the September quarter, down significantly from prior quarters, but it appears there is still more than enough demand for a cheaper, full-size iPad, particularly for the education sector.
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"Despite this quarter including back-to-school sales, the iPad 2, which accounted for a third of sales for the prior six months, seems to have started to show some age, after several strong quarters," said Josh Lowitz, Partner and Co-Founder of CIRP. "Yet, the iPad Mini continued its relative share in the past few quarters, as customers seem to continue to like it as a low-price tablet alternative."
The full-size iPad 4 remained the most popular iPad in the quarter, accounting for nearly half of total sales in the U.S., while CIRP says the iPad mini tallied about a third of sales.
Apple's new iPad lineup sees the older iPad mini starting at $299, the new Retina iPad mini and the full-size iPad 2 available for $399, and the new iPad air beginning at $499.
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Top Rated Comments
I guess profit margins are better on the 2!
It's cheaper.
Simply put, they now have a lineup of 2 full size pads, and 2 mini pads. Each with a retina and non retina version. Pretty simple.
As an interesting side anecdote, something like 90% of the small coffee shops, cafes and local stores I go to are using Square. Not to mention farmers markets, food carts, massage therapists with folding tables, dog walkers, baby sitters, etc.
One cafe I know was spending $1000 a month for a regular POS system that didn't provide ANY metrics for that price, JUST sales processing. They switched to Square on an iPad, ran two months of metrics and proved that sales after 5:00 PM where so low that it was costing them money to be open. Switching to an iPad POS system probably put $10,000 in their pocket in a year. The iPad has been a fundamental business enabler in subtle but powerful ways. Which have nothing to do with retina displays and fast graphics and the like.
It's been replaced by the iPad air. Why is that confusing? They can't make it for any cheaper because it's a retina. Maybe a little, so why would you have the iPad 4 be just barely cheaper than the air, and possibly undermining air sales?