Apple reports strong quarter but the iPad is in serious trouble

Apple reports strong quarter but the iPad is in serious trouble
Apple reported their quarterly earnings today, with all metrics basically in-line.

The company reported $51.5 billion in revenue, and $11.1 billion in net profits, setting a 12-month corporate record for profits at $53.4 billion.

Apple sold 48.05 million iPhones, a bit under expectations, but still good for a 22 percent increase year-over-year. The company says it expects to sell between 74-76 million iPhones for the holiday quarter, growth of under 5 percent year-over-year at best.

Macs continued to see low single-digit growth, and margins increased to 39.9 percent compared to expectations of 39.3 percent. Apple also now has $206 billion in cash, a number that is hard to fathom.

On the other side, the iPad seems to be in serious trouble, with shipments down 20 percent year-over-year to 9.88 million units; the lowest number since 2011. It is becoming increasingly clear that the tablet market has peaked, and that owners are not upgrading on a yearly cycle but rather every two or three years, if at all.

Written by: Andre Yoskowitz @ 27 Oct 2015 22:46
Apple iPhone Apple corporate earnings
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  • SoTired

    It's not that the tablet market has peaked, it's that more people are choosing hybrids that function as both a tablet and a laptop. You know, those refrigerator-toaster things that confused Cook so much.

    28.10.2015 03:21 #1

  • YummyCS

    Nah it's peaked. I've had an ipad for 5 years and I still barely use it and would never ever consider upgrading unless I was an artist for that special ipencil.

    28.10.2015 06:47 #2

  • lamain

    I also purchased a tablet from Asus and have no plans on replacing it. It is now around 2-3 years old and still function for what I purchased it for. There is just no reason to upgrade it. I did purchase a surface pro 3 this year and love it. But I just do not see the surface as a tablet first. I use it more like a laptop that can be a tablet.

    28.10.2015 13:50 #3

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