Personal Finance

Apple, Inc.'s iPad Pros Could Be Doing Better

Idc Tabs
Idc Tabs

Data source: IDC. Chart by author.

Seeing this chart really helps contextualize why Apple has deprioritized iPad product cycles. The iPad maker started elongating iPad cycles a few years back, and seems to be moving toward updating devices every two years. It's too early to say for sure, since Apple is simultaneously expanding the iPad family, which now includes Minis, Airs, and Pros, but it's rather telling that Apple didn't offer any updates at either of its autumn product events.

Go Pro or go home

Perhaps more interesting is that IDC does not think the iPad Pros are selling particularly well. The researcher estimates that the Air and Mini continue to comprise more than two-thirds of unit volumes. There has been a marginal lift in iPad average selling prices with the introduction of the iPad Pros, which cost more. This helped Apple generate effectively the same level of revenue last quarter despite a 6% drop in unit sales. Keep in mind that the 9.7-inch iPad Pro that starts at $600 wasn't launched until earlier this year, so the year-over-year comparison suffers a little bit.

Still, you can't help shake the feeling that Apple's iPad Pros could be doing better, particularly in the context of Apple's big enterprise push.

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Evan Niu, CFA owns shares of Apple. The Motley Fool owns shares of and recommends and Apple. The Motley Fool has the following options: long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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