Apple's iPad tablet sales slump by 9%

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Apple's iPad tablet sales slump by 9%

Posted by sciencetech-blog on Wednesday, July 23, 2014 Label:

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Apple's latest sales results have failed to meet expectations with the group's iPad sales plummeting by nine per cent.

The iPhone maker reported sales of $37.4 billion (£21.9 billion) in its third quarter ending June, falling short of expectations for about $38 billion (£22.3 billion).

The Cupertino-based company also revealed that only 13.2 million iPads were sold in the last three months, compared to 16.3 million in the previous quarter.

The Cupertino-based company also revealed that only 13.2 million iPads (iPad Mini with Retina display pictured left and iPad Air pictured right) were sold in the last quarter, compared to 16.3 million in the previous quarter

The results have triggered fears that iPad sales are set to get worse once Apple launches its rumoured, large-screen iPhone this autumn.

Chief executive Tim Cook put the poor figures down to 'market softness' in some regions, but added a turnaround might come from Apple's recently announced deal with IBM.

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The deal involves businesses being be able to buy iOS devices equipped with IBM-enhanced enterprise software.

Despite poor iPad sales, the iPhone (iPhone 5S pictured) continued to do well with 35.2 million handsets sold in the past three months – an increase of 13 per cent, following a strong performance in China

Despite poor iPad sales, the iPhone continued to do well with 35.2 million handsets sold in the past three months – an increase of 13 per cent, caused by a strong performance in China.

APPLE'S LATEST RESULTS IN BRIEF

The iPhone maker reported sales of $37.4 billion (£21.9 billion) in its third quarter ending June, falling short of expectations for about $38 billion (£22.3 billion).
Sales of iPads, which like smartphones are coming under growing pressure from Android rivals, at 13.3 million fell a little short of analysts' projections for more than 14 million.
Gross margin, however, was better than expected at 39.4 percent, up from 36.9 percent a year ago, primarily due to cheaper product costs.
Despite poor iPad sales, the iPhone continued to do well with 35.2 million handsets sold in the past three months – an increase of 13 per cent following strong performance in China.
Mac desktop computers were the most popular product by the group in terms of growth, with 4.4 million sold, providing a year-on-year increased of 18 per cent.
Overall, the company's quarterly profit rose 12 per cent to $7.75 billion (£4.55 billion).
Apple posted a smaller-than-expected six per cent rise in quarterly revenue, but revenue surged 28 per cent in greater China despite stiff competition.

Cook told analysts on a conference call that Apple's Chinese performance was 'honestly surprising.'

Lower-cost phones sold in China by up-and-coming rivals such as Xiaomi appeared to be grabbing market share mainly from other companies, chief Financial Officer Luca Maestri added.

'We have a really good runway in front of us with China Mobile,' Mr Maestri said, referring to Apple's main carrier partner in the world's number two economy.

'Given our numbers in China, it would seem their success is coming from other Android devices.'

Mac desktop computers were the most popular product by the group in terms of growth, with 4.4 million sold, providing a year-on-year increase of 18 per cent.

Overall, the company's quarterly profit rose 12 per cent to $7.75 billion (£4.55 billion).

Apple posted a smaller-than-expected six per cent rise in quarterly revenue, but revenue surged 28 per cent in greater China despite stiff competition.

Despite a surprisingly robust Chinese market, Apple continues to struggle in the more saturated, developed regions of the United States and Europe - its two largest markets.

The group iPhone typically sales tail off in the quarters before a new smartphone launch, as potential buyers hold off.

Figures also revealed a 36 per cent jump in research and development spending compared with the prior year, suggesting significant new products are on the horizon.

Customers are now eagerly anticipating the launch of the possible iPhone 6 – if that is what it will be called – in the next few months.

Chief Executive Tim Cook (pictured) told analysts that Apple's Chinese performance was 'honestly surprising'

Analysts expect the company to introduce two iPhone versions this autumn, including a 5.5-inch model that thrusts Apple into the market for larger-sized phones popularised by rival Samsung and HTC.

But whether Apple can again produce a revolutionary new product, something it has been criticised for not doing since the iPad in 2010, remains the central question for investors.

Many expect Apple to make a play for the wearable device market with a smartwatch, dubbed iWatch or iTime.

FORGET THE iWATCH: APPLE'S WRIST-WORN DEVICE MAY BE CALLED iTIME

Although smartwatches are a relatively new tech trend, Apple was working on a version as far back as 2011, according to its latest patent.

The files detail a wristband fitted with a detachable electronic touchscreen device. The shape and size of the device in the patent images resembles a sixth-generation iPod Nano and in one design, the word iTime is written on its face.

Speculation around Apple's iWatch began at the end of 2012 and a rumoured release date was initially set for the end of 2013.

Last year the firm was awarded a patent for the name 'iWatch', but it's still unclear what Apple's much-rumoured wristband will be called. The latest patent was filed almost three years ago to the day, on 20 July 2011.

Called 'Wrist-worn electronic device and methods therefor', the patent said: 'An electronic wristband to be worn on a wrist of a user, comprising a central portion having a receptacle area configured to receive and electrically connect to a mobile electronic device, the mobile electronic device including a display and being independently useable, and at least one band portion coupled to the central portion.'

Put more simply, this means the device could be used in its own right, even when not connected to the wristband.

Apple's latest patent was filed in 2011 and awarded today. It details a wristband (pictured) fitted with a detachable electronic touchscreen, which resembles the shape and size of the sixth-generation iPod Nano

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