Ahead of the launch of its refreshed iPad lineup,
) is seeing weaker iPad sales. The company will be unveiling the
revamped version of its new iPad during an event in San Francisco
on Oct 22. Though this much-awaited event has set the rumor mills
rolling on the possible upgrades, we do not expect the refreshed
offerings to be radically different.
The new iPad is expected to be slimmer and will likely be
equipped with a fingerprint sensor. The company took a decision
to revamp its iPad, since it witnessed a slump in iPad sales
during the Jun 2013 quarter.
iPad sales dipped 27% year over year to reach $6.3
billion. Moreover, as per IDC, Apple's market share in the tablet
segment also took a beating, which now stands at 32%, declining
from 60% in the prior year quarter.
Moreover, Apple is also facing a tough challenge in China,
where home grown competitors are snatching away market share from
Apple. Per IDC, Apple's tablet market share in China dipped to
28.0% during the second quarter of 2013, declining from the
initial level of 50%.The research firm also stated that almost
46% of tablets imported by China were made by other smaller
players in the sector, often using the Android operating
Sales of iPads could also have been affected by consumers that
preferred to wait for the newer versions instead of investing in
the existing ones.
Meanwhile, competitors like Samsung, Acer and Lenovo witnessed
a major jump in sales compared to the previous year.
Apple is also expected to rollout an updated version of the
iPad mini at the event. This category of tablets constitutes
models such as iPad Mini,
) Kindle Fire and
) Nexus 7, which are likely to pose stiff competition..
Apple has a Zacks Rank #2 (Buy).
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