Apple Inc. (NASDAQ:AAPL) has moved to address the niggling challenge of declining iPad sales after leaks were made of the company’s next iPads. It is not yet clear whether the leaks on iPad Air 2and iPad mini 3 came directly from Apple according to Bloomberg’s Hans Nichols.
Over the last three quarters, Apple Inc. (NASDAQ:AAPL) has a recorded a decline of 9% in the total iPad sales; there is belief in the company that the new iPads could mark a turnaround in the trend. While iPhone sales have improved over the years, iPads popularity has continued to decline attributed to an increase in competition in the tablet space.
“You look at iPad sales; you look at what they have done; it seems like a lot of Apple Inc. (NASDAQ:AAPL) products; they have a quarters where they are good then they taper off. They are releasing this new one’s just in time for the holiday season, “said Mr. Nichols
Apple Inc. (NASDAQ:AAPL) is releasing the new devices just in time for the holiday’s season where it expects to make impressive sales going by the normal shopping frenzy that accompanies the period. This year’s holiday spending is expected to reach highs of $33 billion with most of the people doing shopping on the consumer electronics section expected to go for tablets.
The tablet market is expected to grow to 101 million worth of devices sold in the next 5 years, news that is of excitement to Apple Inc. (NASDAQ:AAPL) as it makes a push with its new iPads. Nichols believes that the new iPads could take out the 10 million iPhones that were sold in the first week after launch.
The popularity of iPads and tablets is expected to grow as people continue to make an upgrade from Laptops as one of the ways of improving on portability and convenience. Apple’ Inc. (NASDAQ:AAPL) is banking on enterprise companies buying tablets in bulky as one of the options that could considerably help its iPads in terms of sales.
“Carl Icahn never a man to bet against. He thinks that if Apple Inc. (NASDAQ:AAPL) actually torch induces their iPad sales starts putting some money into the marketing you could end up seeing the stock trading at about $200,”said Mr. Nichols
Philippe Laffont’s Coatue Management holds 10.1 million shares in Apple Inc. (NASDAQ:AAPL) at the end of Q3’14.