Apple's Sizable Jump in Tablet Sales Wasn't Entirely Driven by New Lower-Priced 9.7-Inch iPad

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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.

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

Article Link: Apple's Sizable Jump in Tablet Sales Wasn't Entirely Driven by New Lower-Priced 9.7-Inch iPad
 
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MartinAppleGuy

macrumors 68020
Sep 27, 2013
2,242
888
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.
 

Rogifan

macrumors Core
Nov 14, 2011
21,172
25,412
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?
 

ChrisCW11

macrumors 65816
Jul 21, 2011
1,037
1,432
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.
 

gkarris

macrumors G3
Dec 31, 2004
8,188
876
"No escape from Reality...”
Got rid of my struggling iPad 2 (Gamestop gave me $100 towards an XBox One S) plus traded in my iPad Mini 1 (while it was still worth something plus as far as a small tablet, I have a Nintendo Switch ;) ) towards the iPad 2017 - definitely a great iPad for only $329 retail (especially with the A9 and 32 Gigs) - love it...
 
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jlseattle

macrumors 6502
Jan 9, 2007
455
322
Seattle WA
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...
 

pee jay bee

macrumors member
Jun 6, 2014
33
8
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.
 

JPack

macrumors 603
Mar 27, 2017
5,462
8,290
We still can't determine what that ASP was due to.

It's $459 for the LTE version of the 32GB iPad 9.7".

With the recent popularity of unlimited data plans, I wouldn't be surprised if sales of the cellular version increased dramatically compared to previous periods.
 
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spiderman0616

macrumors 68040
Aug 1, 2010
3,658
3,938
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.
The article you're commenting on just explained that's not necessarily the case.
[doublepost=1501774323][/doublepost]
It's almost mesmerizing to see Apple slowly checkmating the tablet and wearables markets just like a spider slowly building his web.
This comment is the best comment.
 

Chupa Chupa

macrumors G5
Jul 16, 2002
14,834
7,394
You have to factor in the iPP 9.7s were heavily discounted after the new iPPs were announced. Those are reflected in last Qs sales too.

Like many entry level Apple products the new iPad is just a tease to get people to upgrade to the Pro. When you hold the new iPad and then immediately hold the new iPP 10.5 it's like night and day. It's clear the iPad was "cheapened" and in no way feels as good in the hands as the Pro plus the Pro is sexier. It would not surprise me if a lot of people go into the Apple Store thinking they are going to pick up a $299 iPad and walk out with a $649 one.

The average of $299 and $649 is $474, very close to the average iPad sale. Would be interesting if there was a survey showing the % of people who went in intending to buy each model but bought a different one.
 
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compete12

macrumors member
Sep 29, 2010
93
198
Why don't we test that hypothesis.
Lower the next one to $299 and let's see what happens.

Even at $329 you're still looking at $400+ once you take sales tax and a cover into account.
 

TMRJIJ

macrumors 68040
Dec 12, 2011
3,235
5,386
South Carolina, United States
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.
Read article.
It's almost mesmerizing to see Apple slowly checkmating the tablet and wearables markets just like a spider slowly building his web.
I imagine Tim Cook playing chess with a huge board and Apple Watches each with the face of a chess piece. Obviously the Gold model is the King.
 

spiderman0616

macrumors 68040
Aug 1, 2010
3,658
3,938
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.
 

576316

macrumors 601
May 19, 2011
4,056
2,556
Had an iPad mini 4 since launch day, but it's getting slow now and it's a bit small for my current needs. I was looking at possibly getting a 10.5" iPad Pro, but is the 2017 iPad an upgrade over the iPad mini 4? How much better is it? A9 vs A8 etc? A lot of what I've seen suggests they're very closely matched, with the 2017 iPad having a slightly worse screen than the iPad mini 4.
 
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Relentless Power

macrumors Nehalem
Jul 12, 2016
32,901
33,742
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.
This is a good post. The $329.00 iPad appealed to you, not because you're necessarily cheap, but because the $329.00 model met your expectations and it does everything you need it to. That's what Apple intended with his model, was to affordably price it to allow someone who wanted an iPad, have the opportunity to purchase a model without spending the iPad Pro price to have what works best for your situation.
 
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spiderman0616

macrumors 68040
Aug 1, 2010
3,658
3,938
You have to factor in the iPP 9.7s were heavily discounted after the new iPPs were announced. Those are reflected in last Qs sales too.

Like many entry level Apple products the new iPad is just a tease to get people to upgrade to the Pro. When you hold the new iPad and then immediately hold the new iPP 10.5 it's like night and day. It's clear the iPad was "cheapened" and in no way feels as good in the hands as the Pro plus the Pro is sexier. It would not surprise me if a lot of people go into the Apple Store thinking they are going to pick up a $299 iPad and walk out with a $649 one.

The average of $299 and $649 is $474, very close to the average iPad sale. Would be interesting if there was a survey showing the % of people who went in intending to buy each model but bought a different one.
That would be a great data point to have--if you don't look at the 10.5" Pro compared to the 9.7" non-Pro and at least THINK about splurging for a second, that would surprise me. Big difference there just in screen alone.
[doublepost=1501775002][/doublepost]
This is a good post. The $329.00 iPad appealed to you, not because you're necessarily cheap, but because the $329.00 model met your expectations and it does everything you need it to. That's what Apple intended with his model, was to affordably price it to allow someone who wanted an iPad, have the opportunity to purchase a model without spending the iPad Pro price to have what works best for your situation.
Exactly right. If Apple didn't want people to have the $329 option, they wouldn't have created the $329 option. And there is nothing wrong with that model selling well. My problem is with the people who say, "Well, I didn't buy a Pro, so nobody else is either." I'm ecstatic that Apple finally made a new budget model that is seemingly compelling people to upgrade from their old units.
 

mi7chy

macrumors 603
Oct 24, 2014
6,472
7,450
Another paid for research to twist the truth. iPad sales are up but ASP is down means the $300 iPad 2017 is selling more.
 
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nwcs

macrumors 68000
Sep 21, 2009
1,831
2,285
Tennessee
Well, I helped a little. I bought 2 iPad mini 4's on tax free weekend for $299 each with free gift card. :) I wish Apple would consider maintaining the mini form factor. I like it better than the bigger form factors. And if they would make the Apple Pen work on all iPads...
 
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