Can Apple Make You Want An iPad Again?

 When Steve Jobs unveiled the first iPad to an enthusiastic crowd in 2010, he called it a "truly magical and revolutionary product." "It's the best browsing experience you've ever had," said the late Apple CEO.

That statement made sense in 2010. Smartphones screens were significantly smaller (typically about 3.5 inches versus five or six inches today), while laptops were heavier and lacked touchscreens. Despite being mocked early on, the iPad introduced the entire concept of a tablet to millions of consumers. (It wasn't the first "tablet," but it popularized the category.) Other manufacturers raced to introduce similar devices, though few matched the iPad's appeal.
But seven years later, the iPad is in trouble. True, Apple still makes the most tablet shipments in the world, according to the latest estimates from research firm IDC. But it's the biggest ship in a quickly evaporating lake. Global tablet shipments fell by 20.1% in the fourth quarter of 2016, IDC says. Apple's total iPad shipments dropped 19% in its most recent quarter, it announced Tuesday, while revenue from the devices is down 22%.
Apple executives remain confident about the iPad's future, at least publicly. "I still feel very optimistic about where we can take the product," said Apple CEO Tim Cook on the earnings call earlier this week. During that call, Apple executives argued that changes in inventory levels and component shortages are at least in part to blame for poor iPad sales. And the iPhone remains a hot seller, taking some pressure off the iPad

 But experts say there's a bigger issue at play: Apple hasn't given consumers a compelling reason to buy an iPad, or to upgrade their existing model. Whereas the device seemed revolutionary seven years ago, today it's stuck somewhere between our embiggened smartphones and ultra-portable laptops. That could leave shoppers wondering what the iPad is actually for.

No comments