Apple has cut the price of iPads in a bid to increase sales, as such sales are now up over 10% on iPads in 2017 compared with the tail end of 2016. This tactic on reducing iPad prices is the oldest trick in the book with iPad sales flagging in comparison to growing iPhone sales in recent years, however this increase in iPad sales has not increased revenues greatly for Apple as the price cut has hit profit margins.
Although Apple sells roughly three iPads for every Mac sold the Mac’s make more profit for Apple. By reducing the cost of iPad’s and introducing entry level iPad’s through to the iPad Pro it has made iPad’s more attractive for customers that do not require all the features available on the iPad Pro. iPad’s can be used for a variety of tasks including POS (replacement for a conventional till were cash is not needed) teaching aids as replacement for books and basic IT tasks as well as watching videos.
Tim cook has said:
“iPad is the perfect tool for teaching in new and compelling ways, and our iPad results were especially strong in the US education market, where sales were up 32 percent year over year to over one million units.”
The lower cost iPad which was launched earlier this year replaced the iPad Air 2 and has a 9.7” screen. The iPad mini 4 is still on sale and it’s form makes it attractive for everyday tasks were the iPhone is not large enough. The iPad has an A9 chip which supports multitasking which greatly increases productivity, and picture in picture.
Apple released the lower cost “iPad” 9.7” as a replacement for the iPad Air earlier this year, and the price along with a A9 processor is driving iPad sales, iPad sales should grow later this year as new iPad Pro models were introduced earlier this year in June 2017.
The iPad Pro now has the A10X processor which is made using a 10nm manufacturing process making it one of the most advanced processors on the planet with 40% faster graphics and 30% faster CPU performance. It offers 6 cores and is more powerful than many desktop / laptop processors. Combine this with the Apple pencil and you have a great all round device that can replace most laptops.
Once you’ve used an iOS device and one of the many alternatives the quality of the product really shows through unfortunately people are often driven by basic stats such as price alone. People love using iPads and love everything about them the only drawback being the price, and by lowering the price and making different models available Apple is set to stabilise its large slice of the tablet sector.
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Summary
Apple has cut the price of iPads to increase sales, which are up over 10% compared to 2017. The move is expected to stabilize Apple's share in the tablet market.
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