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7-Inch Tablets Are Hurting iPad Sales

February 13, 2013 SimplySherryl 3 Comments

7-Inch Tablets Are Hurting iPad Sales

7-Inch Tablets Are Hurting iPad Sales

 

Is it surprising that the increasing popularity of 7-inch tablets, including the iPad mini, is hurting the sales of Apple’s full-sized iPad?

According to a research note published yesterday by Citi’s Apple analyst, the Cupertino-based company is experiencing a dramatic slowdown of its 9.7-inch iPad business.

In the fourth quarter 2012, 9.7-inch iPad sales were almost flat, increasing only 1.8 percent year-over-year.

In the United States and Japan, sales of Apple’s flagship tablets even declined by 9 and 26 percent, respectively.

This unexpected quick slowdown has been blamed on two possible reasons:

#1 Markets such as the U.S. and Japan might be reaching saturation levels. However, understanding that the iPad, compared to the iPhone, can't be updated with a newer model with the  renewal of a service contract every two years. This would certainly address a portion of the slowdown in sales.

#2 What is considered a more likely factor, is that the smaller (and less expensive) tablets are now offering a “good enough” experience for users at a more affordable price thereby taking a large portion of the sales market.  Not surprisingly then, Amazon’s Kindle, Apple’s own mini iPad and Google’s Nexus 7 are reporting consistent sales.

To quote Steve Jobs’  “If you don’t cannibalize yourself, someone else will”.

With competition coming on strong, it was a smart move by Apple to introduce a mini iPad. This holds true even against the fact that the mini iPad is taking away sales from the larger iPad, it is keeping customers at Apple.

Today’s chart by Statista shows the growth of Apple’s 9.7-inch iPad sales as estimated by Citi analysts based on IDC data.

 

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Homeschooling, Technology, Technology homeschooling, SimplySherryl, technology




Comments

  1. cathy ddreemzz says

    February 18, 2013 at 6:19 PM

    tech stuff changes so often it’s so hard to keep up… on thing though, you can sure get some fancy stuff for decent prices, not like when computers first came out

    Reply
  2. Sylvia Ortiz says

    February 15, 2013 at 6:26 AM

    The economy is still struggling right now, so although most consumers would prefer owning an Apple iPad (full-size), the 7″ tablets are what can be afforded at this time.

    Reply
  3. Terri says

    February 14, 2013 at 4:17 AM

    It does seem by the time I get something, a few months later there is a newer, better model, it is very frustrating!!

    Reply

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