Apple’s beleaguered tablet division appears to be returning to normal since the company announced surprisingly strong iPad earnings in August. Demand for the latest iPad Pro is far below what Apple originally expected, according to a new report.
Earlier this week, Display Supply Chain Consultants (DSCC) published analysis showing that demand for OLED panels used in new iPad Pro models “actually slowed after strong performance in Q2 2024.” (Registration required to read the full article). ” Shipments fell 40% in the third quarter and are expected to decline another 30% by the end of the year. The larger 13-inch model is expected to see a staggering 90% drop in shipments in the fourth quarter.
DSCC sets this alarming drop despite its view that the 2024 Pro has the best display and thinnest design on the market. But if a tablet is too expensive for people to buy, having the best display and thinnest design won’t get you very far. What’s more, even the smaller of the two 2024 iPad Pro models starts at $999, well above most odds. Customers will want to spend money. The iPad user base is overwhelmingly casual users who don’t need any of the high-end specs and features offered by iPad Pro, much less regularly upgrade their device. This is bad news for the latest version. iPad Air and soon-to-be new versions of the standard iPad and iPad mini.
Immediately after these strong sales numbers this summer, I realized that these were only temporary sales increases caused by stagnant demand after a long period of no new models, and that the underlying problem was that professional They argued that there were not enough customers and too many casual customers with next to nothing. I’m interested in upgrading regularly, and iPadOS didn’t make sense to me as a work OS. I tried the iPad next quarter to continue this strong performance, but I predicted it would fail. I don’t like being right.
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