Apple released its quarterly report today and the news was about what I expected.
The gadget maker sold 60 million iPhones last quarter. That’s up from 43 million iPhones sold during the same quarter in 2014 and is the second largest number sold ever. The company booked $58 billion in revenue, and increased its cash reserves to $193.5 billion, up from around $150 billion in the year ago quarter.
And last but not least, Apple shipped a mere 12.6 million iPads last quarter, a drop of 23% from the same quarter last year. While some might say that this is a disappointing result, I am actually surprised that it didn’t drop further.
It’s not just that tablets, including iPads, last a long time (I know people who still use the original iPad) or that there is an excess of really good Android tablets on the market, but also that from everything I’ve heard iPhablet sales are cannibalizing iPad sales.
I have been told by countless iPhone 6 owners that they’ve largely stopped using their iPads ever since they bought the iPhablet. They feel the iPhone 6 and iPhone 6+ are the ideal size which splits the difference between a 4″ phone and an 8″ tablet. It’s big enough to be useful and still small enough that they can carry it around in one hand.
And now that they have an iPhablet they no longer need an iPad. Many have since sold their iPads, or given them away. All those used iPads have depressed the market, which readily explains the decline in iPad sales.
Far from being surprised or disappointed, I am expecting this trend to continue until Apple releases the iPad Pro. That will boost iPad sales, but at what cost?
This is pie in the sky speculation, but I expect that iPad Pro sales will cannibalize Macbook sales. I don’t expect people will want to buy a 12″ tablet and a 13″ laptop, so they’ll get one or the other.
Do you see what I am saying?