Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Apple Didn't Need Big Discounts on Black Friday Weekend

The iPad Air.

It's turning out to be an iPad Christmas after all. Apple  (NASDAQ: AAPL  )  CEO Tim Cook's prediction seems to be spot on. The iPad Air was a star this Black Friday weekend, along with several other Apple products, which took the top three spots in sales growth of new devices tracked by Localytics during the weekend. Apparently, Apple doesn't need massive discounts to move inventory on the major shopping weekend.

Surging sales despite small discounts
During the weekend measured by Localytics that included Cyber Monday (Nov. 29 through Dec. 2),  (NASDAQ: AMZN  )  offered 25%-plus discounts on select models of its Kindle Fire on Cyber Monday to move inventory. Meanwhile, Apple had only one promotion for its iPad Air on Black Friday: Purchasers received a $75 Apple Store gift card. But small discounts were all it took for the iPad Air to have an awesome weekend. Weekend sales for the device were up 51% from the previous weekend, according to Localytics. On the other hand, 7-inch Kindle Fire HD sales were up just 23%, coming in fourth place.

Sure, other retailers had bigger iPad Air discounts. But, for the most part, no tablet discounts were as aggressive as Amazon's Cyber Monday deal for two models of the Kindle Fire. Even more, iPad Air sales held up in spite of ad campaigns from Microsoft and Amazon that criticized the tablet.

iPhone 5c. Source: Apple.

Overall, Localytics findings suggested this Christmas promises many iPresents. Six of the nine top spots belonged to Apple. Second place belonged to the first-generation iPad Mini, with 26% growth. Third place belonged to the iPhone 5c, with 26% growth, which outpaced the iPhone 5s' sales growth of 15% (perhaps the not-so-cheap iPhone 5c was a smart move after all).

The bigger picture
As competition intensifies, the main bear case against Apple usually cites the law of large numbers as an inevitable problem. Apple can't hoard such a large portion of industry profits much longer, the argument goes. But this little tidbit from Localytics suggests otherwise. Apple is still on consumers' A-list, it seems -- at least when it comes to tablets and smartphones, Apple's two largest business segments.

Zooming out even further, sales trends seem to confirm that demand for Apple's products is as high as ever. The company just established new iPhone sales records for the fourth quarter. And going into the first quarter of fiscal 2014, Apple has guided for its highest revenue quarter ever.

As a shareholder myself, this new information from Localytics is a small piece of data that confirms my belief that investors have overestimated how quickly intensified competition will degrade Apple's prospects.

Get our No. 1 stock pick for 2014
The market stormed out to huge gains across 2013, leaving investors on the sidelines burned. However, opportunistic investors can still find huge winners. The Motley Fool's chief investment officer has just hand-picked one such opportunity in our new report: "The Motley Fool's Top Stock for 2014." To find out which stock it is and read our in-depth report, simply click here. It's free!

Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 05, 2013, at 12:56 PM, bobmugge1960 wrote:

    The commercial where the windows guy says I haven't approved the purchase of a new stapler for two years but I can't see a reason not to buy this windows tablet with keyboard etc. People are not looking for a reason NOT to buy, they are looking for a reason TO by your product. Apple understands that. Microsoft does not. I remember when the first surface came out and the commercial on the superbowl was all these metrosexuals breakdancing on the table while these asexual women tapped their pens on the table? I thought who in the hell wants to buy that?

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2752727, ~/Articles/ArticleHandler.aspx, 9/24/2016 6:51:32 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 21 hours ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
AAPL $112.71 Down -1.91 -1.67%
Apple CAPS Rating: ****
AMZN $805.75 Up +1.05 +0.13% CAPS Rating: ****