Apple is separating the new smartphones into its usual low-cost versus high-cost categories, with big differences between the two models coming down to the camera, display, and battery life.
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Apple's Sizable Jump in Tablet Sales Wasn't Entirely Driven by New Lower-Priced 9.7-Inch iPad
Apple recently reported sales of 11.4 million iPads in the June quarter, an increase of 15 percent compared to the year-ago quarter. iPad revenue was also up, but only 2 percent year over year, suggesting Apple was selling a lot of new lower-priced 9.7-inch iPads, which start at just $329 in the United States.
A new report by research firm Strategy Analytics, however, argues that isn't entirely the case. Apple's average selling price for iPads remained steady at $435 in the June quarter, down only one dollar from the March quarter.
That doesn't mean the new 9.7-inch iPad, introduced in late March, isn't popular. With a faster A9 chip and brighter Retina display than the iPad Air 2 it replaced, and for less money than even an iPad mini 4, the tablet provides good value with few compromises for customers at the low end.
What it does mean is that more expensive iPad Pro models likely sold well enough to offset the addition of a lower-priced iPad in Apple's tablet lineup. Apple launched new 10.5-inch and 12.9-inch iPad Pro models at its Worldwide Developers Conference, a few weeks before the end of its June quarter.
"It's undeniable that lower pricing on the new iPad helped drive sales throughout the June quarter, but the ASPs tell a slightly different story," said Eric Smith, Senior Analyst at Strategy Analytics, speaking with MacRumors.
"ASPs were steady from last quarter, showing that higher priced iPad Pro models also sold well, even though the new 12.9-inch and 10.5-inch models were out for less than a month in the June quarter," he added.
For historical perspective, the average selling price of iPads has typically been between roughly $415 and $450 since 2015, although it briefly rose to $490 in the year-ago quarter following the launch of the original 9.7-inch iPad Pro.
Apple's sales of 11.4 million iPads far exceeded analyst expectations. The average Wall Street prediction was approximately 9 million iPads sold, according to Wells Fargo, with some analysts predicting as low as 7 million.
Strategy Analytics estimates that Apple took a 26 percent share of the global tablet market in the June quarter, up from 21 percent in the year-ago quarter. iPad remained the world's best selling tablet, ahead of Samsung tablets, which maintained an estimated 13 percent market share in the quarter.
Chinese company Huawei also saw explosive 42 percent growth in the quarter, with an estimated 3.2 million tablet shipments, according to Strategy Analytics. Apple, Huawei, and Amazon were the only tablet makers to experience growth in the quarter, with Samsung, Lenovo, and all other vendors facing declines.
It's worth noting that Apple doesn't disclose iPad sales on a model-by-model basis in its quarterly earnings results.
Given the new 10.5-inch and 12.9-inch iPad Pro models were released towards the end of the June quarter, the tablets should have even more of an impact on Apple's tablet sales in the fourth quarter. Apple's 15 percent increase in iPad sales marked the product category's first unit growth in nearly four years.
Also See: IDC's Worldwide Quarterly Tablet Tracker for June Quarter
A new report by research firm Strategy Analytics, however, argues that isn't entirely the case. Apple's average selling price for iPads remained steady at $435 in the June quarter, down only one dollar from the March quarter.
That doesn't mean the new 9.7-inch iPad, introduced in late March, isn't popular. With a faster A9 chip and brighter Retina display than the iPad Air 2 it replaced, and for less money than even an iPad mini 4, the tablet provides good value with few compromises for customers at the low end.
What it does mean is that more expensive iPad Pro models likely sold well enough to offset the addition of a lower-priced iPad in Apple's tablet lineup. Apple launched new 10.5-inch and 12.9-inch iPad Pro models at its Worldwide Developers Conference, a few weeks before the end of its June quarter.
"It's undeniable that lower pricing on the new iPad helped drive sales throughout the June quarter, but the ASPs tell a slightly different story," said Eric Smith, Senior Analyst at Strategy Analytics, speaking with MacRumors.
"ASPs were steady from last quarter, showing that higher priced iPad Pro models also sold well, even though the new 12.9-inch and 10.5-inch models were out for less than a month in the June quarter," he added.
For historical perspective, the average selling price of iPads has typically been between roughly $415 and $450 since 2015, although it briefly rose to $490 in the year-ago quarter following the launch of the original 9.7-inch iPad Pro.
Wall Street Beat
Apple's sales of 11.4 million iPads far exceeded analyst expectations. The average Wall Street prediction was approximately 9 million iPads sold, according to Wells Fargo, with some analysts predicting as low as 7 million.
Strategy Analytics estimates that Apple took a 26 percent share of the global tablet market in the June quarter, up from 21 percent in the year-ago quarter. iPad remained the world's best selling tablet, ahead of Samsung tablets, which maintained an estimated 13 percent market share in the quarter.
Chinese company Huawei also saw explosive 42 percent growth in the quarter, with an estimated 3.2 million tablet shipments, according to Strategy Analytics. Apple, Huawei, and Amazon were the only tablet makers to experience growth in the quarter, with Samsung, Lenovo, and all other vendors facing declines.
It's worth noting that Apple doesn't disclose iPad sales on a model-by-model basis in its quarterly earnings results.
Given the new 10.5-inch and 12.9-inch iPad Pro models were released towards the end of the June quarter, the tablets should have even more of an impact on Apple's tablet sales in the fourth quarter. Apple's 15 percent increase in iPad sales marked the product category's first unit growth in nearly four years.
Also See: IDC's Worldwide Quarterly Tablet Tracker for June Quarter
Related Roundup: iPad
Tag: Strategy Analytics
Buyer's Guide: iPad (Buy Now)
[ 89 comments ]
Top Rated Comments
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28 months ago
Hmm...What are the MR haters going to say now that their original excuse failed?
They'll find new and creative ways to move the goal posts again."Apple never updates the iPad--it's a dead platform."
"Actually, Apple just made some major updates to the entire iPad line."
"Yeah, but the OS is still the same old iOS."
"Actually, they just announced a major iPad specific iOS update."
"Ok, but that's not going to be enough of a change to sell more iPads."
"Looks like they just had a blowout quarter, in large part due to increasing iPad sales."
"Yeah, but that was only the cheap ones. Nobody cares about the iPad Pro. It sucks."
"Actually, it turns out, based on ASP analysis and polls, that people DO care about the iPad Pro."
"Well, I didn't buy a Pro--I bought the cheap one, so they're lying."
It's the same round and round logic that I go through with people telling me I can't do work on my iPad Pro. They just keep changing the story and moving the goal posts so that it fits their narrative/opinion. It's a pointless debate.
28 months ago
It's almost mesmerizing to see Apple slowly checkmating the tablet and wearables markets just like a spider slowly building his web.
28 months ago
Not possible. Every tech site I visited claimed Apple’s good quarter was due to a cheap iPad.
Funny I don’t see anyone talking about the Mac where revenues were up more than unit sales. Is that perhaps because it doesn’t fit the narrative that everyone is buying the MacBook escape because no one likes the TouchBar?
Funny I don’t see anyone talking about the Mac where revenues were up more than unit sales. Is that perhaps because it doesn’t fit the narrative that everyone is buying the MacBook escape because no one likes the TouchBar?
28 months ago
Another single data point here:
I bought the 'value' iPad as it does all thing basic things I normally use a laptop for: Internet, calendar, email, FaceTime, internet.
Loved the price because I'm a cheap bastard.
I bought the 'value' iPad as it does all thing basic things I normally use a laptop for: Internet, calendar, email, FaceTime, internet.
Loved the price because I'm a cheap bastard.
28 months ago
I think there is lots that Apple can do for the iPad (and pro) models from a software perspective. Giving us a "mouse" experience with the touch interface would help. I know some don't understand the need for a mouse. But it's easier to use a mouse then to touch in some instances (especially when working with a keyboard - which is what I do). Or event a touch pad that is attached to the keyboard. Something...
28 months ago
Another paid for research to twist the truth. iPad sales are up but ASP is down means the $300 iPad 2017 is selling more.
Reading comprehension is super important.
28 months ago
Straw poll of one, but...
I'd bought the first iPad back in the day and never felt it was quite right to upgrade - went for a while not using an iPad as it became too slow and not supported after a while...
then I bought the 10.5". Wanted a Pro for pen support, thought the 12" too large. The promotion and perfect (for me) screen size won me over. Very happy too. The Adobe CC partner apps are good enough to be useful and fit my workflow.
I'd bought the first iPad back in the day and never felt it was quite right to upgrade - went for a while not using an iPad as it became too slow and not supported after a while...
then I bought the 10.5". Wanted a Pro for pen support, thought the 12" too large. The promotion and perfect (for me) screen size won me over. Very happy too. The Adobe CC partner apps are good enough to be useful and fit my workflow.
28 months ago
While other iPads are doing well and regularly updated by Apple. Now they should update the iPad Mini. I really love iPad Mini form factor. I won't be buying big iPads they are too big for me to comfortably use.
28 months ago
yes, I am sure Apple sold more Pro's in the last quarter because of the new model, but mostly I think that Apple offering a value priced iPad was what drove higher sales figures.
Imagine that, Apple offering a highly desired product at a GOOD VALUE price increases sales and profits...amazing.
Imagine that, Apple offering a highly desired product at a GOOD VALUE price increases sales and profits...amazing.
28 months ago
For me it was because the iPad Pro finally went, well, 'pro'. Fro, the hardware on the new 2017 models, to the upcoming iOS 11 release; I was more than ready to make an iPad my secondary machine and I have no regrets - 12.9 256GB iPad Pro. Everything from local web development on Coda, photo editing on Affinity Photo, and quick mockups on Adobe Comp, the iPad handles my secondary machine workload next to my iMac and I now have no need for a laptop.
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