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Can Apple Keep Up its Tablet Dominance?

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Apple's (Nasdaq: AAPL) most recent earnings were greeted warmly by investors, but the quarter was a mixed bag of positive and negative storylines. One of the areas investors are focusing the most on is Apple's iPad sales number, which was its first ever year-over-year drop in the number of tablets sold. 

In the video below, Fool analysts Evan Niu and Eric Bleeker examine whether the iPad can keep up with a tablet market that's still seeing quite a bit of global growth. As the two of them discuss, with the hottest area of tablet sales being on the extreme low end, Apple's iPad growth rates will likely trail the global average. However, what might be the most interesting storyline for the coming years is when consumers buy new tablets. Since tablets are "newer" devices, the rate at which consumers upgrade tablets is still to be determined. Whether users choose to upgrade tablets in two, three, or four years will likely determine how big the iPad's total market size will be. 

To see Evan and Eric's full thoughts, watch the video below. 

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  • Report this Comment On July 28, 2013, at 8:28 PM, MooneyPilot wrote:

    While iPad sales were down year over year in this most recent quarter, the quarters are really not comparable for at least two reasons. 1) the iPad with retina display was introduced in the same quarter in 2012 and saw exceptional sales upon its introduction (note no new iPad introductions this quarter in 2013 making comparisons challenging) and 2) Apple stuffed the inventory channels last year with the introduction and have subsequently reduced inventory substantially. After accounting for that iPad sales are only down 4% even without an introduction of a new model. I'm a Fool One member and am getting sick of these overstated, provocative headlines that are both titillating and wrong. I expect better from the Fool. Also, for those of us who read a great deal faster than listening to a video, please provide a transcript so we don't have to waste time on the site.

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