Did the third-generation iPad a flop at retail? Last March,
that revealed a surplus of units when the device went on sale. In
the months that followed, Apple (NASDAQ:
) announced that the new iPad had sold fairly well. During the
summer, overall iPad sales topped 80 million (first- and
second-generation models included). On October 23, Apple
announced that it had sold
100 million iPads
These sales numbers have caused many analysts to speculate
about the reasons why the Cupertino, California-based enterprise
would release a brand-new iPad only seven months after the
On Monday, Benzinga
provided its own analysis
of the iPad and its future.
"By releasing the iPad 4 and iPad Mini simultaneously, Apple
can cut the prices of its older models all at once and let
consumers decide what they want right now," Benzinga argued. "If
they choose the third-generation iPad, Apple can rest easy
knowing it still got a sale. If they choose one of the newer
models, the company will gain higher profits. Either way, Apple
As it turns out, Apple will not continue selling the
third-generation model. The iPad 2, however, will remain on the
market for $399. Nonetheless, Benzinga's argument still applies.
It does not matter which iPad consumers buy because Apple will
still make a profit.
Benzinga also argued that Apple would release the
fourth-generation iPad to prevent consumers from anticipating a
spring 2013 release.
"One of Benzinga's former news analysts waited 18 months to
purchase a new MacBook because he was always eager to see what
upgrade would be -- and, as it turned out, the one after that. If
Apple releases the iPad Mini this fall, it could lead to a
similar dilemma. It may create a situation where consumers are
too afraid to buy an iPad because they wonder when the next
iteration will be released."
By upgrading the full-size iPad
, Apple has eliminated this risk.
While those were justifiable reasons for Apple to upgrade its
tablet, some analysts believe that the third-generation model had
a "stale product." This forced Apple to upgrade the device a few
months early in order to reignite sales ahead of the holiday
What does this mean for spring 2013? While Apple is an
unpredictable company, it likely means that the firm will not
release another iPad refresh anytime soon.
However, now that the company has upgraded
product in its current lineup, there is not anything left to
refresh during the early months of 2013. This could mean that
Apple will employ another slate of minor tweaks and improvements
as it prepares for more significant enhancements later in the
(c) 2012 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.