Apple (AAPL) Shouldn’t Count on Strong 2015 Tablet Shipments

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There are many reasons why Apple Inc. (AAPL) investors have won big during the past few years, including the success of the company’s iPad lineup. While tablets are sure to hang around for the time being, Cupertino, as well as AAPL investors, should not count on strong sales next year.

Tablet shipments are expected to decrease next year, due in part to larger smartphones and cheaper notebooks.

apple iphoneApple need not worry as much as other vendors, as it has more than enough power in its product lineup to make up for the difference. If iPad sales begin to slip, there is a good chance that iPhone 6 and iPhone 6 Plus sales will pick up the slack.

What AAPL should be concerned with is a lack of a cheap notebook, as many vendors are beginning to push these to market during the fourth quarter of the year.

Digitimes Research compiled an interesting look at what other research firms are expecting, adding the following:

“NPD DisplaySearch expects global tablet shipments to reach 254 million units, up 2% on year, but far lower than its previous forecast of 14%. IDC expects the volume to grow 6.5% on year to 230 million units, also lower than its original forecast of 12.1%.

WitsView expects global tablet shipments to reach almost 200 million units in 2014, flat on year. The research firm expects the tablet market to suffer an on-year shipment drop in 2015.”

Nobody knows what the future holds, but these market research firms spend a lot of time and money to ensure that their estimates are as accurate as possible.

Even if the tablet market falters, Apple shares should not take too much of a hit. Cupertino will be backed by the strength of the iPhone 6 to go along with the launch of Apple Pay, as well as its foray into the smart watch market. But it’s a trend the company needs to stay ahead of.

As of this writing, Chris Bibey did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2014/10/apple-aapl-stock-tablet-shipments/.

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