Apple iPad Revenue Increased 7% Last Quarter

Discussion in 'Apple/iOS' started by Ed Hardy, Jul 27, 2016.

  1. Ed Hardy

    Ed Hardy FORMER Editor, TabletPCReview Staff Member

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    During the second quarter of this year, Apple's revenue from tablet sales increased, even though the number of devices it sold went down. This reflects that the average price of each iPad sold is going up.

    The company sold 9,950,000 tablets in the April-June period, down from 10,931,000 in the same quarter of last year. It took in $4.9 billion in revenue in the most recent quarter, compared to $4.5 billion in iPad revenue in Q2 2015. CEO Tim Cook said "We had our best iPad compare in 10 quarters, with revenue growing 7% thanks to the rollout of the 9.7-inch iPad Pro" In a conference call after the earnings announcement.

    This was the first quarter that both the 12.9-inch iPad Pro and the 9.7-inch iPad Pro were available, two premium models with starting prices of $799 and $599, respectively. In Q2, the average selling price (ASP) of an iPad was $490, compared to $415 in the year-ago quarter, as sales have slowed in recent years for models like the $260 iPad mini 2. Customers are using large smartphones instead of small tablets, but are increasingly turning to high-end tablets to replace laptops.

    This has led to a long decline in sales of iPads and most of its rivals, but this is the first quarter there's been an increase in revenue to offset the number of devices sold..

    Additional Comments from Apple Executives

    Tim Cook also said during the conference call "We're proud to have the most exciting lineup of tablets and accessories in the world and exceptionally high customer satisfaction and engagement. Our surveys also show that about half of iPad Pro purchases are buying them for work. iPad Pro is the ultimate upgrade for existing iPad users and the ultimate replacement device for customers switching from PC notebooks."

    On the same call, Luca Maestri, Apple's Chief Financial Officer, said "In the segments of the tablet market where we compete, we continue to be highly successful both in terms of market share and customer metrics. Recent data from NPD indicates that iPad gained share in the overall U.S. tablet market in the June quarter and has 84% share of tablets priced above $200. And in May, 451 Research measured a 96% consumer satisfaction rate for iPad mini and a 95% rate for iPad Air. Among U.S. consumers planning to purchase a tablet within the next six months, 63% plan to purchase an iPad, almost four times the purchase intention rate of the next highest brand measured, with iPad Pro the top choice for planned purchases. Corporate buyers report a 94% satisfaction rate for iPad and a purchase intent of 71% for the September quarter.

    "One recent example of iPad business adoption is Sberbank, Russia's largest bank, which is adding 22,000 iPads to more than 10,000 purchased last year to deploy corporate mobility solutions across the organization and enable its consultants to serve customers in a more engaging and more efficient way."

     
  2. Haybow

    Haybow Pen Pal - Newbie

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    I'm always amazed of how incredibly easy it is to sway numbers one way or another to get a certain point across... These numbers sounds quite good coming from Apple, but if an analyst wants to flip the numbers, it would spell doom.
     
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