Apple Inc. (AAPL) Has To Kick Start iPad Sales


According to reports, Apple Inc. (NASDAQ:AAPL) is going to launch two new iPads by the end of this year. Discussing the launch of new iPads and its effect on Apple Inc. (NASDAQ:AAPL)’s revenue in a program on Bloomberg, Piper Jaffray Senior Research Analyst, Gene Munster, said that iPad is the troubled child of Apple and Apple needs to inject something really new and creative to penetrate iPads into the market successfully otherwise iPads will face serious problems in the competitive market.

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“It’s probably not going to be much different that the existing iPads, they can add touch ID sensor to it, they can also add a less glare screen. I think the big piece they are focusing on is when are they going to make a little bigger of an iPad, something that’s more of an industrial, more of a pro version, and their supply chain is not picking that up right now, so I will not expect that this fall, eventually that is going to happen. But to your earlier comments, I think iPad is still a troubled child here and I don’t see some of the changes this fall being enough to really get that business kick started, there are some other things that are going on that potentially could get that going, but as far as this fall, that’s not going to be one of the focuses that investors are going to be eyeing,” said Munster.

Munster added that the launch of iPhone 6 in the form of a 5.5 inch phablet will cannibalize the iPad sales and this will be good for Apple Inc. (NASDAQ:AAPL) because new iPhone 6 will cost around $700, whereas the iPad’s price tag is around half of this. iPhone 6 sales will increase Apple Inc. (NASDAQ:AAPL)’s revenue and gross margins, while iPads are not performing well over the past two years. According to Jaffray, there is an 85% chance that Apple Inc. (NASDAQ:AAPL) will release the iWatch this year.

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