The Apple iPad has long been one of the leading mobile devices sold throughout the world. For several years, this tablet broke numerous sales records as the industry established itself. As the sales statistics show, however, those record levels of growth are very difficult to maintain.
In Q1 2015, 21.42 million iPads were sold. That’s about 5 million fewer tablets when compared to the same quarter the year before.
The iPad typically sells well not around the holidays, but in the first three months of the year. In looking at the sales data, however, the statistics might seem a little more grim than they really are. Although the market may still be a bit soft, in Q1 2011, there were just 7.33 million units sold. Q1 2015 figures might be down, but 3x more units moved.
- Over the Christmas period in the first quarter of 2014, Apple generated a massive 11 billion dollars in revenue just from iPad sales.
- In Q1 2015, Apple receive $8.9 billion in iPad sales revenues.
- Compared to revenues in Q3 2010, revenues from iPad sales are up 4x.
- Apple has sold 2x the number of iPads when compared to Macs to educational customers. More than 8 million iPads have been sold directly to educational institutions.
- 43% of teachers surveyed said they allow students to use tablets such as iPads in class.
- The 3 textbook publishers that produce 90% of the curriculum that schools use have partnered with Apple to sell digital versions.
- The iPad accounts for 82% of the web traffic that is created by tablets. That’s also the same percentage of teachers who say that their students have been interested in studying because of the presence of tablets.
- The number of US school districts that are using tablets in the classroom: 2,300.
- 225 million iPads have been sold since their introduction.
The sales trends for iPads might headed downward, but that isn’t something that Apple should be worried about. They still have a lockdown on the premium tablet market and that isn’t changing any time soon. The only real threat to the product right now would be the tablet PCs that are being introduced at lower price point. To receive the same experience, a Bluetooth keyboard is required for the iPad and at that price point, the cost could be double that of a Microsoft Surface. Despite that fact, this is the market reality: people stay loyal to the Apple brand no matter what. Add in the educational points of emphasis and Apple looks to continue dominating.
Is The iPad An Affordable Tool to Use?
- The amount that it costs to charge an iPad throughout the entire year: $1.50.
- More than half of the sales numbers for iPads have come from sales that came in 2013-2015.
- 49% of the iPad revenues come from sales of the iPad Mini series.
- There are more than 725,000 different native iPad apps to use and many of them are free to download.
- Apple accounts for 94% of the sales in the tablet market to educational institutions.
- 36% of all the tablets sold in 2013 were iPads.
- The cost to build an iPad Mini: $274-$361.
The iPad continues to dominate the market because it is a premium product that the average household can afford today. Even older models of the iPad are still being supported by Apple, making the iPad 2 a useful purchase since iOS 8 was made available to it. This may boost sales in used and refurbished equipment, but could also account for some of the softness that has been experienced in the iPad sales figures as of late. People with the iPad 2 don’t really have much incentive to upgrade to the latest generation, so they keep using the older technologies.
How Could iPad Sales Statistics Be Troubling?
- The tablet market has expanded by 7.6%, but the sales figures for the iPads are down 12.7%.
- The tablet market has also become saturated, with a 52% total market penetration from a global perspective.
- The average life cycle of the iPad has reached the same levels of PCs and laptops with up to a 4 year cycle.
- Android tablets have between 85-90% of the capacity of the Apple iPad and many of them can be purchased for a price point that hovers around $100.
- 2014 was the first year that iPad sales fell when compared to the total previous year.
When sales go down, it becomes easy to predict doom and gloom. There are some troublesome statistics in the tablet market right now that could work against Apple, but it is important to keep the entire picture in mind. In Q1 2015, more than 20 million units were shipped for nearly $9 billion in revenues. Apple may not have hit the same highs that it was able to hit before, but one fact still clearly remains. The iPad might be losing ground to some of the competition, but it is still the king of the mountain.
Could iPad Apps Be Apple’s Salvation?
- 37% of the apps in the Apple Store are free, with the average price of all apps being $3.67.
- The average iPad owner will download a total of 60 apps for use over the life cycle of the tablet.
- 10% of the total downloads that the Apple Store experiences every day are initiated from an iPad.
- More than 2,700 educational institutions are using the iPad and its apps to store their academic programs.
- 1 million. That’s the number of apps that are available that are best used from an iPad.
- Apple generated $43.7 billion in total sales in Q1-Q3 2014. That was more than Facebook, Amazon, and Google put together.
- Although down, iPad sales alone would account for one-third of the revenues Microsoft generates annually.
- Apple’s iTunes/software division did $4.57 billion in sales in Q1. For the last 12 months, Netflix did $4.37 billion in sales.
The truth is that people are worried about Apple for nothing. In iPhone sales alone, Apple completely dominates the competition, selling $6 billion more in iPhones than Microsoft does in total business. Most businesses should be judged for the fact that they could lose a billion dollars here or there, but Apple isn’t most businesses. With a valuation that hovers around the $1 trillion dollar market, the lost of $1 billion seems like a lot, but in reality is just a loss of 1%.
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