New iPads or Not? iPad Revenue Predicted to Sharply Drop in Q4 2023

Apple's quarterly iPad revenue will significantly decline in the fourth quarter of 2023 on a year-over-year basis, according to estimated figures shared today by Erik Woodring, an analyst at investment firm Morgan Stanley.

iPad mini and Air Feature 2
Morgan Stanley estimates that Apple will report iPad revenue of $7.2 billion in the fourth quarter of 2023, which would be a decline of approximately 23% compared to the $9.4 billion that Apple reported for the segment in the year-ago quarter.

The year-ago quarter will be a tough comparison for iPad revenue, according to Morgan Stanley, as Apple announced updated iPad Pro models and the 10th-generation iPad last October. Over the weekend, two reports indicated that Apple plans to announce updated iPad Air, iPad mini, and entry-level iPad models this week, although some credible sources like Bloomberg's Mark Gurman have cast doubt on this rumor.

It's unclear if Morgan Stanley expects new iPads to launch this month, but given the firm expects iPad revenue to significantly decline this quarter, the firm is at least not expecting any iPad updates that are major enough for revenue growth. Only minor changes are expected for the next iPad Air, iPad mini, and entry-level iPad whenever the devices are released, including an M2 chip for the iPad Air and an A16 Bionic chip for the iPad mini.

There are also rumors of a third-generation Apple Pencil with interchangeable magnetic tips for drawing, technical drawing, and digital painting.

Apple has yet to release any new iPads this year. If that trend continues for the remainder of 2023, it would be the first calendar year with no new iPads released in the device's 13-year history. The two reports expecting new iPad models this week said Apple's announcement would likely be on Tuesday, so we'll see what happens tomorrow.

Top Rated Comments

Mr. Dee Avatar
8 months ago
Because the iPad is a consumption device primarily that people keep for a very long time even when they stop getting updates. Apple sees this.
Score: 26 Votes (Like | Disagree)
Shirasaki Avatar
8 months ago
Maybe make iPadOS better for various professionals rather than limited to creativity? Or make it work like macOS? iPad sitting in Between iPhone and Mac, not quite Mac but bulkier than iPhone while doing 90% of things iPhone can do, makes it a harder sale.
Score: 20 Votes (Like | Disagree)
Spaceboi Scaphandre Avatar
8 months ago
Even if we had new iPads their revenue would drop anyhow. Higher end iPads have become redundant outside of use for artists and most just buy an iPad and hold onto it for five years or longer. Not to mention the fact iPadOS updates are all just sloppy seconds of the previous iOS update every year, so why even get an iPad anymore when Apple's treating owners like second class citizens versus the iPhone and Mac?

Guts of a Mac, but does a lot less than a Mac, and is more expensive than a Mac. At that point, JUST BUY A MAC. And many agree as the Mac has been making more revenue than the iPad.



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Score: 16 Votes (Like | Disagree)
hch720 Avatar
8 months ago
Give me an iPad Pro with dynamic island and action button!!!!
Score: 11 Votes (Like | Disagree)
jz0309 Avatar
8 months ago
It is still the hangover from the pandemic when everyone got new computing devices.
Just like MacBooks, iPads last a long time and upgrade cycles are getting longer…
Score: 11 Votes (Like | Disagree)
ipedro Avatar
8 months ago
People don’t update their iPads every year or two. They keep them for 5 or more years (or 6 months if you have kids).

This isn’t a reflection on the interest of the iPad. It’s a positive indication of its longevity. Apple should treat it like it does its Mac line.
Score: 11 Votes (Like | Disagree)

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