Apple (NASDAQ:AAPL) reported revenue declines last week for nearly all of its segments -- except for iPad and services.
In this clip from the Industry Focus: Tech podcast, Motley Fool analyst Dylan Lewis and contributor Daniel Sparks talk about how well the iPad did, and how Apple managed to grow this segment.
A full transcript follows the video.
This podcast was recorded on July 29, 2016.
Dylan Lewis: We talked about iPhones. Any other segments you're interested in talking about with Apple?
Daniel Sparks: I think iPad, as a product segment, and Greater China as a regional segment, are definitely interesting. The iPad segment was actually, other than services, which we'll get into in a bit, was Apple's only growing product segment during the quarter, which is somewhat surprising just because generally, Apple's iPad segment has been one of its hurting product segments. But recently, we know that Apple introduced the iPad Pro. This looks like it's playing a pretty solid role in helping Apple's iPad business. When we look at the segment, we see unit sales down 9%, and revenue is up 7%. So the only way for this to happen is, the average selling price of iPads [is] trending higher. The iPad Pro is definitely a very premium product for Apple. It could be said that it's cannibalizing Mac sales, but that's always been part of Apple's business -- innovate as much as possible in each product segment. In that case, it looks like it's playing a good role in iPad.
Lewis: Yeah. It's nice to see ASPs trending well for at least one of their product lines.
Daniel Sparks owns shares of Apple. Dylan Lewis owns shares of Apple. The Motley Fool owns shares of and recommends Apple. The Motley Fool has the following options: long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.