In a bid to strengthen its competitive position,
) refreshed its full product lineup for the upcoming holiday
season. After releasing iPhone 5S and 5C in September, the
company recently upgraded its iPad product lineup, which will not
only help it to woo existing customers but also attract new
The refreshed iPad lineup comes with additional features, is
thinner, lighter and powerful compared to its predecessors. The
new full-size tablet called iPad Air has a faster processor,
offers a better resolution and display and is priced at $499.
Apart from iPad Air, the company also launched a refreshed
iPad Mini with retina display and 64-bit desktop class
architecture used in iPad Air.
) has been instrumental in bringing down the price of tablet
devices such as iPad, by introducing low cost tablets starting at
$229. Therefore, it is a smart move by Apple to competitively
price its new iPad, which will help it to withstand competition
from other players.
Moreover, Apple also announced that it would provide free
access to its iWork productivity suite, which competes with
) Office applications. Moreover, the new device from Apple comes
with iLife photo, movie as well as music making apps.
Apple's iPad witnessed year-over-year volume growth of 28.6%
during the first nine months of fiscal 2013, whereas the
introduction of the lower priced iPad Mini boosted iPad revenues
by 8.32% compared to the year-ago period. Although, iPad Mini is
a lower margin product, it has kept the sales momentum intact for
The company will start selling the iPad Air early in November,
while iPad Mini will be available later in the same month. Apple
is doing it to strengthen its grip in the tablet market as
industry experts believe that the company might lose some of its
market share to other competitors.
As per industry research firm IDC, although Apple iPad may
continue to be the top-selling tablet, its market share has
declined from 60% in the year ago period to 32% this summer.
Moreover, Android-based tablet sales soared from 38% to 63%. This
apart, Windows-based model is also witnessing a good jump.
Competition from companies such as
) and Samsung have also affected the growth prospect of the
We believe that this completely refreshed product lineup will
help the company to improve its top-line growth going forward.
However, Apple is known for its innovations and the lack of a
completely new product will remain an overhang on the stock in
the near term.
Currently, Apple has a Zacks Rank #2 (Buy).
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