Apple Inc. (AAPL) is one of those companies that doesn’t get off track very often. Tim Cook and company know what they want, and they will do whatever it takes to reach their goals. Even if the iPad gives ground to the competition, it will continue to remain the market leader (at least for the time being) thanks to its large buffer.
According to Digitimes Research, Cupertino is focusing a lot of time and effort on its new 9.7-inch iPad. The research firm noted the following:
“Overall iPad shipments in the third quarter of 2014 are expected to return to the growth trend.”
Even with this good news, there is reason for Apple to be worried about the future of its iPad lineup. In addition to increased competition, there is a bigger problem staring the company down: a weakening demand for these devices in many key markets throughout the world, including the United States and Europe.
The primary culprit is an increase in popularity of larger smartphones. While this shift may work into AAPL’s hands when its new iPhone hits the market, it could lead to a continual decline in the company’s tablet business.
Did Apple Miss a Big Opportunity?
Consumers want fresh. Consumers want new. Consumers want something that will get them excited. With the sixth-generation iPad beginning production in August and likely to hit the market sometime during the fourth quarter, many are wondering if Apple made any changes worth talking about.
Digitimes Research noted that the exterior design will remain the same, but that some changes, such as “direct bounding technology to reduce the gap between the cover glass and LCD” have been implemented. The question remains: Is that enough to keep consumers excited?
The research firm believes that iPad shipments will grow 8.7% year on year during the third quarter of 2014, with the 9.7-inch model accounting for nearly 60% of shipments. Conversely, it feels that shipments will take a 13.5% hit during the fourth quarter.
Apple has its work cut out for it in the tablet market, with the possibility of a strong third quarter followed up by a downturn as the year comes to an end.
As of this writing, Chris Bibey did not hold a position in any of the aforementioned securities.
