iPad Air 2 (drop test 001)

Noted analyst Ming-Chi Kuo of KGI Securities is out with a report on Friday that’s extremely bearish on the state of Apple’s iPad. The analyst, who expects Apple to release a new 12.9-inch model in the coming months, says the downward trend of iPad sales to continue, as much as 30 percent in 2015.

Kuo believes iPad shipments will “struggle to top” 45 million units in 2015, which is a 30 percent year over year decline from 2014. The first quarter of the year is said to be particularly bad, with a prediction that shipments will decline 52.7 percent in the first quarter of calendar 2015 to just 10.1 million units.

It gets worse in Q2 2015, with the analyst predicting another 30 to 40 percent to between 7 million and 8 million units. That will make a year for the steepest iPad declines since the tablet was released in 2010.

The 12.9-inch model, rumored to be called the iPad Pro, will be released in late-2015, according to the analyst. Even though it opens up virtually a new product category for the company, Kuo doesn’t believe it will have a major impact on iPad sales right off the bat.

Last quarter, Apple posted iPad sales of 21.4 million versus 26 million last year – not as bad as what Kuo predicts to come.

Tim Cook, CEO of Apple, thinks more partnerships in the enterprise space will help the iPad grow.

“The issue is not a market share number, because our market share is extremely high. The issue is that enterprises, generally speaking, are only deploying iPads to a small percentage of their workforce,” Cook said speaking on the company’s quarterly earnings call last week.

Source: Apple Insider

  • Dan

    It’s simple market economics, most people have a tablet now, so they there is no need to buy one each year.

  • myamo

    Drop precipitously…yes
    Tank… No
    Nothing in the history of sales of anything Is considered tanking if 45 million of said product is sold in one year.

    • coldspring22 .

      drop precipitously = tanking in eyes of wall street. What if iphone went down 30% YOY? Any guess as to what will happen to iphone company stock?

  • Tommy Gumbs

    Sales will continue to drop until IOS on iPads is drastically changed to handle real life work and school flows. It’s getting close but not there. It actually slows you down in terms of productivity when compared to a machine that is more capable.

    Keyboard discussions aside one day the iPad will be able to do more, faster and competently. But for now other tablets are rapidly passing the iPad in terms of the way they can be used.

    IMHO the probs with the iPad are to blamed on the limited capability of iOS. Until they open this baby up, it’s just an iPhone with a larger screen, nothing more.

  • diggitydang

    Does that make us all analysts, because I think everyone knew this already…

  • Falk M.

    Quick Apple, create artificial reasons to upgrade!
    More lag for old iPads on new iOS versions!

  • czbird

    Canibalism of 6+ on the mini in the flesh… They’ve got what they wanted :-/

  • n0ahcruz3

    SP3 real workhorse. Ipads mostly media consumption. My iPhone 6 is good enough for media consumption. No need for ipad. If i want bigger screen, there’s my chromecast for my iphone to mirror.

  • Nowadays, people have everything available in their cell phones what they need. Hence,why would they need a big screen iPad? If Apple wants to continue selling more iPads, then they should improve it and put something extraordinary features into it.