After the launch of the new iPhone and Apple Watch series, the Cupertino company is in a good financial moment. According to CEO Tim Cook, “iPhone revenue exceeded our expectations, setting a record for the September quarter, as well as quarterly records in many markets. Between wearables, home and accessories, revenue was $9.3 billion.”
However, Apple experts such as Ming-Chi Kuo point out that there is a device that has been conspicuous by its absence during Cook’s reports and that is also pending an update.
It’s about the iPad. The sale of this product has recently experienced difficulties. During the fourth quarter of the fiscal year 2023, iPad sales reached $6.44 billion, compared to $7.17 billion in the same period a year ago. Projections for this quarter were around $8.63 billion.
According to The Street, a possible reason for the decline in sales and enthusiasm could be that Apple has not yet introduced a new iPad model. In December 2022, the company launched an updated iPad Pro, which helped boost sales at the time.
However, this dynamic was already foreseen by Apple given that its financial director, Luca Maestri, informed investors that he anticipated a significant slowdown in iPad sales for this year.
Analyst Chi Kuo anticipates that Apple will carry out an update to its iPad models, possibly not before the holiday season, but definitely during the company’s 2024 fiscal year.
The expert pointed out in the following updates and releases:
-Update of all iPad Air models
-iPad Mini update
-A new larger iPad Air, 12.9 inches
-Updating the iPad Pro with OLED screens
-The company will discontinue the older iPad (9th generation)
In terms of timeline, Ming-Chi Kuo expects the iPad Air updates to roll out first, possibly starting in the first quarter of 2024. The Pro versions are expected to receive updates later in the same year, while the Mini models would be the last to be updated. The most significant modifications will likely focus on the more expensive and advanced iPads, especially the iPad Pro.
With these planned updates, analysts anticipate that Apple’s successes in the tablet market could rebound strongly. The pent-up demand for a renewed tablet could be generating expectations in the market.
Enthusiasm for iPads peaked after the pandemic, with Apple selling a total of 63 million during fiscal 2022. Estimates for this year are around 50 million.
Although iPhone sales are strongly influenced by the market, being low in China and very high in the United States, they are generally experiencing a positive performance. During the conference to present the financial results of AT&T, one of the most important operators in the US, its CEO, John Stankey, announced that they have experienced the most robust iPhone pre-sales in years, referring to the line of iPhone 15.
Furthermore, according to data provided by Ming-Chi Kuo, in the final stretch of the last quarter of 2023 Apple will achieve great sales growth compared to the same period last year. It expects iPhone 15 sales to reach 80 million units, well above the iPhone 14.