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An Unexpected Loss for Apple Inc.'s iPad

Growth has been increasingly hard to come by for the likes of Apple's (NASDAQ: AAPL  ) highly popular iPad tablet. 

Apple received plenty of scrutiny when it issued a surprise drop in iPad shipments in its most recently reported quarter, although the decline wasn't actually as ugly as the surface-level number.

Source: Apple.

However, there's still the undeniable truth that the tablet market as a whole is careening toward maturity, and that growth for the entire category will likely be harder to come by across the board in the future.

And keeping that in mind, Apple's iPad recently received a key defeat in an important market at the hands of the likes of Microsoft and Google.

LAUSD says "so long" to Apple's iPad
Recently, the Los Angeles Unified School District underwent a massive overhaul of its tablet program, one with which Apple had secured contracts worth upward of $650 million alone. However, LAUSD administrators recently underwent a change of heart and will no longer support Apple's iPad in as many as 27 different schools. Instead, they'll be providing six new options, including the Microsoft Surface Pro 2 and two different Google Chromebooks.

More broadly, though, this marks a symbolic defeat in the education market Apple heavily markets its iPad toward and raises even more questions about the growth underpinning Apple's tablet going forward. In the following video, tech and telecom specialist Andrew Tonner examines the news of Apple's tablet defeat in greater detail.

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Read/Post Comments (6) | Recommend This Article (5)

Comments from our Foolish Readers

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  • Report this Comment On July 10, 2014, at 3:46 PM, CalvinballPro wrote:

    School districts are subject to voter scrutiny and will have an impossible task trying to justify the "Apple Tax" when comparable devices are available for HUNDREDS less per unit. Schools have budgets, which means they can't spend money on teenagers like Apple's legions of absentee iParents do to keep their spawn's attention occupied.

    That Apple thought schools would shell out millions for their overpriced devices year after year is insanely laughable.

  • Report this Comment On July 10, 2014, at 4:37 PM, Uruzone wrote:

    You should really be involved in the deployment of these devices before you make a ridiculous statement like that.

    I do and I can tell you: 1) There is no "Apple Tax". Apple's Education division works closely to make their devices more affordable when purchased in bulk. 2) Apple's $20 server software includes MDM software that saves thousands of dollars. 3) iPads and iPod Touches have proven to be long-lived and durable, outlasting competitors' products AND holding their resale value even after children break a screen or otherwise damage the case.

    While I don't like the idea of any one company having a complete lock on education, and though I think all school districts will eventually have to embrace a BYOD model (already happening in Florida, for example), if it were going to come down to a single supplier, Apple generally ends up being CHEAPER over the long run.

    Source: I'm an independent, Apple-certified consultant with a speciality in midscale iOS deployment.

  • Report this Comment On July 10, 2014, at 6:42 PM, never2dull4u wrote:

    Hey Calvin;

    What has better resale value? Samsung Galaxy Tab or iPad? iPhone 5S or Galaxy S5?

    Last I heard, MSFT tablets are made of bricks and are worthless.

    Draw your own conclusion before you speak. If you DON"T know the answer, look it up on Ebay or Craigslist.

  • Report this Comment On July 11, 2014, at 2:22 AM, sitaifun wrote:

    It seems most people don't realize the serious health damage caused by microwave (i.e. Wi-Fi and cellular) radiation, particularly to children whose skulls are thinner and less protective. Barrie Trower has strong words for subjecting school kids to Wi-Fi:

    Cindy Sage echoes these scientific facts -- not concerns or controversy, but proven over the last two decades:

    As convenient and useful as the technology is, carefully consider the consequences and use responsibly.

  • Report this Comment On July 11, 2014, at 3:00 AM, Nohjnogias wrote:

    This is more about a failure of the LAUSD than a failure of the iPad. Schools are failing miserably to educate children, and no tablet on Earth can correct the problems inherent in Public Ed.

  • Report this Comment On July 11, 2014, at 12:00 PM, aardman wrote:

    I have an iMac, then I got an iPad 3. The division of tasks between the two was pretty clear; both were used significantly. Then i got an iPhone 5s. My use of the iPad tailed off significantly after i got the iPhone. For sure I will always have a desktop and an iPhone but I don't know if I will get another iPad once the one I have becomes obsolete. I might, I might not. Depends how inconvenient life gets without the iPad.

    Just one data point but I suspect it's typical for a lot of people, hence the observed pattern of iPad demand.

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Andrew Tonner

Andrew Tonner is a tech specialist for The Motley Fool. He is a graduate of The University of Arizona with a degree in Finance.

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