With Apple reporting lower-than-expected iPad sales for the second quarter in a row, it’s likely that Tim Cook will be once again be called on to reassure investors that the decline in year-on-year sales won’t continue indefinitely.
Cook has been very bullish on the iPad, despite the numbers, pointing especially to growing sales in the education sector and the opportunity for tablet growth in enterprise.
The penetration in business is low, it’s only 20 percent. If you looked at the penetration of notebooks in business it would be over 60 percent. We think there is a substantial upside in business.”
I think he’s right, especially with the IBM partnership. I mentioned in my opinion piece then that increasing penetration in enterprise could also help drive consumer migration from Android, as it gives people exposure to iOS devices. But the impact this has could well be offset by the iPhone 6 …
iPhones are remarkably capable devices, and I’m always amazed how much people manage to get done on them. I even met someone who wrote parts of a novel on his iPhone while travelling on the London tube (metro).
But many of us find an iPhone screen a little cramped for prolonged use, and for most things on the move I’m more likely to reach into my bag for my iPad than into my pocket for my iPhone. That desire to have the same convenient access to mobile apps but with a bit more breathing room is the reason the iPad exists.
Personally, I’m a fan of big screens. My main Mac is still a MBP 17, and I have the iPad Air rather than the mini. But plenty of people seem to find the iPad mini a good compromise, offering enough room to work in a device which is still extremely portable. The question that has to be asked is: if those people are happy with a 7-inch screen, might they be just as happy with a 5.5-inch one?
Apple has never been afraid to cannibalise its own products. Cook is on record as saying they Apple accepts that iPads cannibalise MacBook Air sales, but “if Apple doesn’t do it, someone else will.” But cannibalisation of iPad sales by the iPhone 6 could be a rather more worrying phenomenon …
If an iPhone owner opts to buy an iPad instead of a MacBook Air, Apple makes less money but still sells a second device. But if someone who currently owns both an iPhone and an iPad mini decides that, next time around, they’ll just buy a 5.5-inch iPhone as an all-in-one device, that’s a completely lost sale.
I do think this is a significant risk. I know a number of people who opted for an Android handset when the first 5-inch models came along specifically because they wanted to carry one device rather than two, and for them a five-inch screen was big enough to perform the duties of both a phone and a tablet.
For most of us, a platform switch would be way too high a price to pay for a bigger screen, but once people can get that larger screen in an iPhone, it’s likely that a significant number will find the single device route an appealing one.
If we’re considering iOS sales as a whole, I suspect the iPhone 6 will have a positive effect. There are plenty of people who’ve been waiting impatiently for a larger-screen iPhone, and I suspect we’ll see significant migration from Android. Both frustrated iPhone users who left the platform to get a bigger phone, and Android users who’ve been eyeing the Apple ecosystem jealously but who weren’t willing to downsize.
But what is good news for the iPhone could, if enough people opt for the ‘one device does it all’ approach, prove a significant threat to sales of the iPad mini in particular.
If you currently have both an iPhone and an iPad (especially an iPad mini), what are your plans once larger-screened iPhones are available? Keep buying both, or will a 5.7-inch iPhone be good enough to do it all? Take our poll and let us know your thoughts in the comments.
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Well the polls are super interesting . I can’t imagine not having my iPad ..
Ummm, isn’t the iPad a large iPhone already? ;)
No. Not at all. It has no “phone” for starters, merely a cell radio which is a different thing altogether. The software is different too although only so slightly different that it’s maddening that they keep it as a separate product category.
The iPad actually has EXACTLY the same cell radio in it as the iPhone. Apple just has the voice channel features disabled. Customers pay for the functionality in silicon, don’t get it.
When LTE Adv gets here with VoLTE the differentiation will get even more minuscule, for when carriers adopt VoLTE (and they will) the “phone” function will traverse the cell radio purely as yet another data stream, like streaming audio or FaceTime Audio. At that point, except for areas which do not have LTE Adv, there will be no difference between an iPhone and a cellular-equiped iPad at all. Should make you wonder what the difference between an iPod and iPhone will be too (both the same device, one with one without a radio; iPad is one device family with and without radio).
I have been a long-time vocal proponent of a 5.5″/6″ 4:3 aspect iPad with a voice capable radio. I think it would be a HUGE hit in the services sector (think delivery people and professional service workers). The ability to carry one device, bigger than an iPhone, aspect ratio of a tablet, but would fit in a uniform pocket or conveniently on a belt…yet still be able to make calls back to the office, or to tech support, or to customers letting them know you’re going to be 10 minutes early (because this new-fangled device would help you be even more productive!).
@Scott I want the same thing (iPad mini with ability to make calls), but as I said, the cell radio being there doesn’t make it a phone. We all just have to wait until Apple actually builds in the capability.
I’m thinking their seeming reticence has to do with their fear of the carriers and of “rocking the boat.” Astute observers will have noticed that while Apple *talked* a big disruption game early on, in fact, they have toed the line with the carriers every single time and done essentially nothing to disrupt the core model that existed before the iPhone came out.
We are still being essentially raped the carriers with outrageously high prices for data even though their costs have dropped dramatically, the customer base has skyrocketed, “churn” has fallen, and their infrastructure costs have long been paid back.
Apple makes a huge amount of money off of the carriers and has a vested interest in letting things stay as they are. The idea that Apple is a market disruptor, and the common story you read in the press a lot about how they are “radically changing the phone market” are all essentially BS.
Are we thinking about this the right way? Are we getting bigger phones, or are we really getting phone functionality in larger devices? At this point, why can’t I get cellular communication functionality in my iMac? It’s not a device category anymore, it’s a hardware-enabled application, like GPS. The bigger question, I think, is when will phones, as separate devices disappear.
I agree, though the ability to make and receive iPhone calls on a Mac with Yosemite/iOS 8 meets my needs there.
Its also the far more sensible approach to the question.
Ben, I think you’re spot on here. I’ve been waiting since the iPhone came out for Apple to really play up the “continuity” concept that they really could have shipped day 1. I was tethering my MacBook via Bluetooth to my Sony mobile on AT&T when the iPhone shipped. The functionality has always just been right beneath the surface; it is nice to see Apple start to use it. Which makes me think: Apple never does ANYTHING unless the TIME is right. So that means Continuity is merely the start…of what? And I think that is this idea, just as when the Mac was the center, the digital hub of your entertainment lifestyle, now the iPhone’s radio has become a center of your communication lifestyle. As more and more devices (homes, cars, etc) become ubiquitously connected, the concept of an iPhone matters less, because the “special” feature of the iPhone is that radio…if the radio moves out or becomes less “special”, then the device is just yet another iPod or iPad, or a Mac, talking to a radio connecting to the cloud.
For me I ditched the iPad after having the iPad 2 for 6 months back in 2010. I switched to a 11″ MacBook Air. My iPhone does everything an iPad does. I welcome the larger size, but was just as satisfied with the iPhone 4 dimensions. So I think you need a new poll for people like myself.
“For me I ditched the iPad after having the iPad 2 for 6 months back in 2010.”
You were lucky to have the iPad 2 in 2010. Must have been a prototype? Apple unveiled the iPad 2 on March 2, 2011 ;-)
You are correct. So in May 2012 I purchased the 11″ Air.
The iPad is here to stay. It may morph but I think it’ll remain close to what it is now for some time. The iPad will reach full maturity when it penetrates deeper into Enterprise/Business workflows. If anything, the mini may be phased out.
Nice article. Tim Cook’s ‘do the right thing’ approach is fine. It’s unfortunate that some folks don’t always see this. For example when the iPad mini came along, it also contributed to a margin decline (which was really just a return to reasonable sustainable margins) The stock market went nuts driving the price down. If bigger iPhones cannibalize iPads, that’s fine. I agree strongly with Ben and Tim, that the IBM joint venture will increase iPad sales (and Mac sales) in the enterprise for years.
Thanks, Fred
iPad sales are “down” because they’re treated more like a computer, in that people will keep them and use them longer than they do a phone, and also the lack of Touch ID. I think everyone saw the ease and convenience of that feature and held out on a new iPad purchase until it was added. Not to mention the future possibilities for Touch ID and an iPad.
End of discussion. People don’t upgrade them every year or even every 2 years like iPhone.
I’m not sure why everyone is still posting comments. The discussion was ended here.
I think we will see more screen real estate in a future iteration of the iPad Air footprint. I think that’s the next step The iPad Air footprint is about perfect.
I think it depends on how the larger iPhone identifies itself to software. Some apps work differently on an iPhone than they do on an iPad. Even at a huge 5.5″, I have a feeling that the iPhone will still identify itself as an iPhone. The iPad is safe.
If Apple would add stylus support to the iPad line, it would provide further differentiation and usefulness in the iPad vs. the iPhone. With schools utilizing the iPad, it makes sense to integrate stylus input with palm rejection, while maintaining the ease of use of iOS instead of OSX. Microsoft’s Surface Pro is still held back by their full Windows OS experience.
If Apple would add “stylus support” (wtf that means), they would not sell a single unit more. Nobody cares.
If anyone cared, they could go to Target and buy and Styli-for-iPad and go nuts. They’ve existed for years and work very well. Again, nobody cares.
I happen to agree with you. That’s one feature Apple could add to the iPad that would expand its capabilities. Not just an old-school passive stylus for navigation, of course, but a sophisticated pressure sensitive type of “iPen” that would allow for ball pen thin lines and superior accuracy, coupled with palm rejection. That would indeed make the iPad even more relevant to both education, the world of arts and many more markets. The reason Apple hasn’t added support for an active stylus so far, I think, is because they don’t want consumers to get confused about the general input method of the iPad for navigation. It was important for Apple to establish the fact, that an iPad is operated by a finger touch UI. But now that iPads are well known devices to the general public, a pressure sensitive screen/pen technology may be an addition to the iPad that makes sense. It makes sense for note taking as well.
If I don’t have a real computer in front of me, the next best thing is an iPad, not an iPhone. So I will always want and need an iPad.
iPad sales are down purely because they are not being lofted by upgrades. These devices are NOT subsidized like iPhones, and an upgrade every year or even every two is out of the question for most people given the price tag.
iPhone sales are bolstered by low subsidized prices and high upgrade rates.
We are now seeing subsidized iPad sales, though – certainly for the LTE models.
Only for the LTE models, and LTE is pointless if you already have a data-sharing plan (which more customers are switching to) so only a small minority of iPad would be sold under a subsidized model
Not pointless IMV. I have unlimited data on my iPhone, including tethering, but it kills the iPhone battery. I thus have an LTE iPad with a data contract. Personally, I always pay retail and get cheap tariffs (an option not available in the USA), but subsidized iPads are only going to get more common over time.
For me, I’ll stick with the smaller iphone for portability and continue to buy the ipad mini’s. I recently switched from the full size ipad to the mini and couldn’t be happier. A larger phone screen would be nice but I honestly use my phone 50% less now that I have the mini which is much easier to hold than the full sized ipad.
I think iPad mini sales would suffer. Full sized iPad, not at all. I think over all, they would sell near the same number of tablets as they normally would, but the iPad air would be most of those sales.
I am one of those REALLY wanting the 5.5″ iPhone. Hope they release it at same time.
I’ll keep using my beloved iPad Air. Even a 4.7″ phone (I refuse to carry a phablet) is too small to be easy on the eyes as much as a 9.7″ iPad. And with iOS 8, the phone call handoff feature between the two is going to be fantastic! I can’t wait to come home, and just put my iPhone on the counter or plug in to charge and not touch it until morning when I leave for work. Everything will be on the iPad and I can move about the house with it and won’t need to touch my iPhone until I leave. This is finally the true realization of post-PC for me. The mobile for being mobile (iPhone) and the iPad for my home casual computing (emails, texts, calls, YouTube, web browsing, gaming, photo editing, etc)
I think your poll is faulty in that it doesn’t have an, “I will keep the iPad because I don’t like the large phone” option.
That’s where I’m at anyway. I barely use the iPhone, but it’s basically necessary to have one because the iPad mini doesn’t do all the same things that the iPhone does (not to mention the horrible contracts). The obvious answer IMO is to make iOS devices interchangeable and let people choose which one they want.
Even a larger iPhone, (even the 5.5″ one if it even exists), is still too small to operate as a “phablet.” There are more than enough folks like me who if given the opportunity to have a small tablet that “does everything” would go with that and it seems foolish to me that Apple doesn’t make that option available.
I’ve been using portable computers since the very beginning, from Newton, to Palm, to Handspring, to Windows CE, to PalmPC, Clie, back to Palm, and all the iOS devices. All I f*cking want, is a single portable device that handles all my computing needs. That’s all a lot of folks want, and I think part of the explanation behind the desire for larger iPhones.
To a hard core enthusiast like myself though, only a small tablet will do. Apple has done practically nothing to improve the iPad experience since the first model other than the one time reduction of the side bezels when it released the mini. Turn the iPad mini into a real, portable computer and you will see hordes of people dropping the iPhone in favour of the iPad mini.
I’m with you in not wanting a larger phone (though this time around I think I’ll either have to get an iPhone 6 or a 5s – I don’t see my 4S performing well with iOS 8). I don’t, though, think I would ever be happy with a single device. There are times when I want a really big screen, and times when I want a pocket-sized device, and I don’t think that will, for me, ever change.
Well, I would say that it’s fairly clear that the iWatch will eventually have phone capabilities itself (the cell antenna and circuitry), as communication and voice interface are going to be it’s main functions. Then everyone will just have that, and some tablet of whatever size the user thinks is appropriate to their needs.
So looked at one way, the “phone” will most likely disappear altogether as it’s functionality gets subsumed into the iWatch, or even the entire product range.
So it’s not the iPads that are going to be left behind, but the iPhone. There will always be a need to deal with documents, but as the phone part gets smaller and smaller, there won’t always be a need for a dedicated “phone.”
An iWatch as a phone is a non-starter IMV – I don’t want a speakerphone most of the time, even if a tiny speaker had the volume needed. You’d need a Bluetooth earpiece, at which point there’s no point involving the iWatch at all.
The poll also omits a selection to indicate “using/switching to an Android device because it’s more functional that Apple’s offerings.
That’s my vote.
If I get a large iPhone (5.5″) I’ll still keep an iPad Air.. I won’t see a need for an iPad Mini though, as the iPhone 5.5″ would fill that void for me..
For me.. The Mini would be likely the one hit the hardest by a large iPhone…
(heres hoping my post doesn’t get deleted again.. :/ Someone hates me)
I think it will take away from some of the iPad sales but not all. They do serve a different purpose even though its a “large iPhone”. They should focus on iPads taking over laptops in the business. We use VMWare View and I could eliminate 30 laptops in my organization if they just enabled bluetooth mouse support. Currently they have both iPads and Laptops, and are due for an upgrade on both. At this point, Microsoft Surface 3 is looking like the only option for me.
I think this will be the beginning of the end of the iPad Mini, especially if they let the iPhone 6x run software in “tablet mode.” Although an order of magnitude larger, if you really scrub folks down on their use of the iPad Mini, they wanted a smaller/lighter/singlehanded reader and movie viewing device. For those purposes, I think most users will find 5.5″ more than adequate, and thus free them of the two device burden (or for many of us the three device burden of phone, tablet, and laptop). Even at 5.5″, the iPhone will be with you all of the time, and I never carry my iPad Mini “all of the time.” This will find even more penetration among Windows users, like myself, where I just don’t want the added burden of a tablet between my iPhone and my laptop (in this case, the Surface Pro 3). I would think MacBook Air owners would love this option since their Air’s are already as light as it goes for a great ultrabook.
To run tablet software it would have to be a different aspect ratio. So the iPhone 6 won’t be able to do that.
First, a correction: the iPad mini really is more of an 8″ device than it is a 7″ device (7.9 rounds to 8, not 7).
Second, my fearless prediction for what we’ll see very soon (maybe as soon as this fall):
I believe that the iOS line is effectively going to become a unified line, with the primary differentiator being screen size (and, of course, less-visible differentiations on battery life, storage, processor speed, etc.). All devices will have the ability to make phone calls (thanks to VoLTE), all devices will have the same–or largely similar–cameras, and so on. So, just like you can currently buy Macs with 11.6″, 13.3″, 15.4″, 21.5″, and 27″ screens, and do largely the same stuff on each, you’ll be able to buy iOS devices with (some subset of) 4″, 4.7″, 5.5″, 7.9″, 9.7″, and 12.9″ screens, and largely do the same stuff on each. Developers currently make apps that work on both the iPhone and iPad from one binary. In this new world, they’ll be able to write apps that cleanly adjust their UIs to each of the different screen resolutions, if they wish.
Note that I’m not basing this speculation on any inside knowledge–I don’t have any–just on what makes logical sense to me, and what I’ve read on the ‘net.
I’ve believe so, too. It’s a pleasure
I don’t think anyone has mentioned one of the fundamental differences between iPhone and the iPads, which is that the IPhone’s battery drains much more quickly. So when traveling, while the iPhone offers most of the functionality of an iPad or iPad Mini, it can’t always be used for everything without the risk of the battery running out, making one unreachable. I prefer to do most navigating, for instance, with an iPad, to preserve the phone battery for talking and quick checks of email, etc.
Ideally, I would have all three, or just a large iPad for home/work (as a laptop replacement) and a larger iPhone with 18 hour battery if one eventually is made.
The topic of product cannibalization is an interesting one. It’s bound to happen whenever product diversity emerges and changes. The problem with this poll is that many different people have many different needs, as can be seen in the comments here. Apple is aware of this, which is why the iPad Mini came into existence, and why we’re now (most likely) seeing multiple sized iPhone screens for the first time (in a single iteration; iPhone 3G-4S vs. 5/5S doesn’t count). People want choices, and Apple is catering to that. Apple still has it within their means to prevent the dreaded “fragmentation” issue as is oft pointed out in the Android ecosystem (so many different screen sizes, which from what I’ve read in recent weeks, isn’t so much an issue for Devs as is the issue of varying OS versions).
As you pointed out, Ben, people who are not diehard upgrade enthusiasts (i.e. every year) more often upgrade out of necessity in the iOS ecosystem, with respect to iPhones, than anything else. An iPhone 4s will very likely become sluggish with iOS8, obviously due to dated hardware. This may be the case with iPads as well, however, as others have pointed out, due to the unsubsidized pricing (I don’t know too many people getting LTE iPads, personally), this upgrade cycle for for iPad owners will likely be much, much longer.
My own personal situation is this: I first scoffed at the idea of an iPad. I still do, sometimes. I felt it unnecessary seeing as how I had a fully functional, fully portable laptop. I only bought one for business reasons (healthcare note taking app, with STYLUS input, no less – something others have already discussed). I bought the 4th Gen iPad in late 2012. It’s still going strong. It only sees use from 9-5, and that even varies day to day. I went with the full sized one over the Mini because: 1) at the time, the mini was NOT Retina display – it looked rather poor, and 2) I needed the screen real estate for scribbling down notes for work. The only reason I see myself upgrading it any time soon is because the Air is SO much lighter, and a little smaller (easier to hold in the hand for writing notes). Even then, that’s not a huge necessity – I’ve lasted this long without those features. It’s merely something that would be “nice” to have. I can hold off spending $400 (after selling the old one) to upgrade to the latest and greatest iPad for another year or two.
But that’s the only scenario I use my iPad. I put it in my laptop bag at the end of the work day, and it stays in there until the next day. Every other time I need to do computing, I’m on my 13″ MBA. It’s perfect for file management, word processing, multitasking, web browsing, etc. I love the option/ability to quickly open a photo in Photoshop to do some serious editing if need be without having to take out another device. The MBA is light and portable enough that this suits my needs. I wouldn’t (as easily) be able to accomplish some of these tasks on my iPad.
I used to have an iPhone 4S, but then my 1.5yr old son (at the time) dropped it in the toilet by accident – never giving my children my phone again, lesson learned! So I USED to be an iPhone guy, but since going with a no-contract carrier (Koodo here in Canada), I buy unlocked phones. I can’t justify paying MORE than an entry level MBA for a top-of-the-line iPhone. Absolutely absurd. I’ve gone the way of the dodo, and even though I am an Apple guy, I bought an Android phone (Moto G, 16gb, $200 unlocked). And I’ll likely remain an Android guy for the forseeable future (Moto X+1, or whatever it ends up being called, this fall!). I am looking forward to having a 5 or 5.1″ phone.
Which reminds me – my brother had a Nexus 7 tablet for quite some time, got a Nexus 5 last fall, and hasn’t touched his tablet since. Larger phones (“phablets” – though in this day and age I’d hardly consider the Nexus 5 a phablet) definitely have the potential to cannibalize the smaller tablet market. But the mid to larger (“iPad Pro”?) lineups are here to stay for the foreseeable future. That is, until the MBA and iPad product lines merge into one.
*end longest post ever* (I apologize)
I believe Apple still has an opportunity to sell more iPads in the educational and health sectors. The only problem I see is that consumers might be satisfied with cheap Android tablets that sell for $199. If that’s the case, then there’s not much Apple can do except stick to the limited high-end tablet market and continue to lose overall market share. If Apple cannibalizes its iPads with its own phablet then so be it. At the high-end, I think there is only so many devices Apple can sell. Wall Street might not be happy with that, but there are certainly finite sales limits when it comes to holding high hardware margins. Continued growth can only be met by going cheap and Apple is not going to do that and I don’t blame them. Apple’s best solution for revenue growth would be to find a revenue stream that doesn’t involve hardware sales.
It is time for the Mini to be at a $199 price point. The entry level Mini should also have 32GB. These changes would increase sales.
A 4.7″ iPhone (the one I intend to upgrade to) will not be a suitable replacement for my iPad. I use my iPad to flag and lightly retouch photos, compose both typed and handwritten documents on it (and reference/modify them in meetings), practice foreign language handwriting on it, watch mosaic camera feeds of NASCAR races on it, DJ mix on it for small parties among family and friends, read books on it, watch movies on it and play games on it among other things that legitimately benefit from the screen real estate, all of which would diminish as that size shrinks.
As far as I can see, a 4.7″ phone is not going to replace my use of a 9.7″ tablet anytime soon.
I also just quickly want to offer up a possible explanation for at least some of the iPad’s sales decline, which is that maybe it’s similar to one of the reason PC sales went into decline: the lack of necessity to upgrade very often?
I’m currently using a 3rd Generation iPad.which came out over two years ago. With Apple’s iOS 7.1 optimizations it runs great, supports the latest OS version, and has yet to have any real problem running any app I install on it. The only thing that has tempted me to upgrade in that time is the decreased weight of the iPad Air, that’s it, but that alone wasn’t enough and I happily passed on it. Heck, if I was sure the next iPad Air wouldn’t have Touch ID and would simply be a spec bump I’d probably be tempted to continue using my 3rd gen iPad another year. So long as it is supported with OS updates and does everything I need it to do, why do I need to upgrade? Maybe I’m not the only one?
Just my $.02 on that.
Let’s all keep in mind that a 5.5″ iPhone screen will still have less than half the screen area of an iPad mini.
About a 1/4…
My neighbor uses both an iPhone and an iPad for work on a daily basis. We’ve seen reports on airlines worldwide taking on the iPad for flight bags (Save the trees!) I’ve seen very few people who have work provided phones that aren’t iPhones, if those companies aren’t already using iPads in their daily business, I imagine they’re already migrating that way or at least giving it some thought.
As for me, screen size isn’t a deciding factor when I get a phone. It’s for calls, texting, quick catch up in social media/looking up an address or phone number, and taking badass pictures. I have the iPad Air, my husband has the iPad 2, and my son has an iPad Mini. I don’t plan on ditching the iPad when I get a bigger screened phone, it’ll just be a little more convenient when I need to take a quick look at or edit a spreadsheet on the go.
I’m one of a dying breed who likes the smaller screen sizes. For my iPhone, 4.7″ will be as big as I want it, keeping the device small enough to easily fit in my pocket. For my iPad, 7/8″ is about just right, keeping it portable and easy to use on the couch with one hand. And finally, for work, my 13″ MacBook Air is just right, still small enough to fit on a plane tray, yet large enough to do my work. What I do miss is a smaller desktop Mac of around 18″ for design work. The iMacs are just too large for my liking. But, Ii’m pretty damn sure I’m in the minority here.
No. There are many and personal and professional reasons to use an iPad. But largely two reasons:
* Reading
* Application Usability
The iPad Mini which I use regularly is ‘just’ big enough to use for the reasons stated. A slightly larger phone just doesn’t cut it. And I would not want to use my iPad Mini as a phone replacement. That’s just weird.
I don’t think a larger screen iPhone will effect the popularity of the full size iPad. It might pt some people off buying the mini though..
Just build a bigger ipad, keep the differential.
I would love a 13″ ipad.
Why would people stop getting a 9.7 inch display and buy a 4.7 or 5.5 instead? Maybe people who buy the mini, but not the Air. I’ve bought every iPad since release and I buy them because if their great size. I use my phone as a phone and use my Air as my main device for basically everything else. The size is it’s selling point.
I think Apple does recognize the drop in iPad sales but Tim Cook said they aren’t worried about it as the tablet industry hasn’t nearly matured yet.
The IBM partnership could very well save iPad sales as enterprise-specific apps sound very appealing. Plus each enterprise deal probably means hundreds if not thousands of iPads so it’s likely a lot easier to rack up volume in the b2b side of iPad sales.
Many thanks for all the comments posted here. It’s a busy time for me right now, so I haven’t had the chance to reply to as many as I’d like, but I do read all comments, and they’re appreciated.
I believe the iPad hasn’t “penetrated” deeper into business for one very important reason. No mouse support. Yes yes… it’s the post PC era. More like the post PC error. Virtual computing is HUGE in businesses now and is growing exponentially. The “Computing” is being done by large servers and the screens are being pushed to thin client or zero client devices. A Bluetooth mouse along with the supported Bluetooth keyboard would allow for much better control of your applications. The mouse IS the ultimate pointing device – much better and faster than your finger will ever be! And really, how hard would it be to give us the OPTION? Before you reply and tell me how YOU don’t need a mouse, don’t bother – cause I’m telling you most of the computing world today still uses a mouse, and 10 years from now, they’ll still be using a mouse. If the iPad had mouse support, I’d have replaced the 400 computers here with iPads instead of zero clients. I see “Other” tables being used EVER DAY because Apple refuses to budge – and if they’re not careful, it will be their undoing (again).
I Went to get my oil chanced just yesterday. Guy comes out to the garage bay with a Microsoft tablet of some sort. Few clicks of his FINGER and he’s pulled up my car info, typed in my mileage, checked a few check boxes of what I wanted done – then we went inside to his office, he docked it, then with a few clicks of his MOUSE, he added some additional notes, did a few other things, then printed out the paperwork for me to sign, then he continued to do his day to day work on the tablet with the help of the mouse. Many of you are cupping one right now while reading this. It needs to be an OPTION is all I’m saying.
The other place I see apple missing out in business penetration is in smart phone screen size. I recently had Dish installed. The installer had me sign my contract on his 5.7″ – company issued – Android smart phone. iPhones are just too small for this. The Comcast techs carry larger smart phones too. You can simply see your work orders better on the larger screen.
Apple damn near went extinct because of their inflexible business model. They’ve risen up from the ashes and are making the same mistakes again. Had they never signed that 3 year exclusivity deal with AT&T – Android devices would still be on the same level as the Microsoft devices are today – struggling to be accepted. It continually blows my mind at how innovative Apple can be -and yet miss the mark time and time again with short comings of simple features. A prime example would be the new “Hey Siri” option in iOS8. Works great – but you gotta be plugged into power for the option to work – Seriously? WTH?
* “Other” Tablets
Its scary to me that anyone on this site would even question whether or not there’s a future for the iPad. It shows a fundamental lack of insight to how the industry evolves and the history of product evolution. Anyone who questions the iPad’s future is probably:
1. Looking at the current iPad and making assumptions about the product in 5 years, and not taking into account the immense performance gains we’ll see year over year and what they will mean for features and uses.
2. Do not fully grasp what a success this product is and that there has never been a product in history to sell so many in such little time. None. The iPhone and iPod were not nearly as successful so quickly.
3. Incorrectly comparing iPad sales to iPhone sales and not fully understanding the differences in how they are purchased or how they are used.
4. Lastly, they probably don’t have an iPad 2 for which they would notice that the 3 year old device is actually still hanging in there pretty well and therefore does not fall into the same 2 year refresh trap.
You’re right about a lot of this – I have an iPad 2 and use it every day. I rarely pick up my laptop unless I need a mouse to do something (Like remote into the office). If it had mouse support, I would throw away my laptop. I would have bought the latest iPad – but they decided NOT to put TouchID into it. So I’ve decided to wait. (Seems like I’m always waiting)
Exact same boat. I had the card in hand practically, but no touch ID. I suppose it worked out though, we should see touch ID this time around along with the new snappy graphics. The nice thing is we were able to wait simply because the iPad 2 still functions very well. I don’t think you and I are anomalies as this is probably a very similar conversation happening in many others’ heads. When you’re coughing up $500 – $800 for a device versus hiding the real cost in a subsidized plan, the upgrade rate will be much less than iPhone.
I can see the phablet eat into sales of the mini, but iPad use cases tend to be different. I personally have both and will continue to do so, though I admit to having less interest in the phablet because it’s just too big to use as a phone without looking like an idiot. :) Also, pockets. I like my phone to fit in one, just to increase wardrobe options.
More likely, the iPad sales are down because people are waiting for new iPads.