Q2 Report Shows Apple iPad Sales Dip

During the second quarter, Apple sold 14.6 million iPads, whereas Wall Street analysts were expecting the company to sell 18 million. The CEO at Apple, Tim Cook, discussed the competition, following the release of results.

Commenting on whether some of the decline was due to competition from other tablet vendors, Cooks cited data from an online advertising network, Chitika, which shows that in June, iPads accounted for 84.3 percent of Web traffic from tablets in the U.S. and Canada.

Cook said: “If there are other tablets selling, I don't know what they're being used for.” He did not comment on Microsoft’s $900 million write-down for its Surface RT tablet, which was confirmed through its Q4 earnings recently, or question how Windows 8 and Android tablets are selling.

To date, Apple shares have fallen over 20 percent this year, and Android usage continues to grow. In reference to the iPad’s first year-over-year sales decline since its debut in 2010, Cook stated that there is a logical explanation.

During the quarter, Apple’s iPad sales fell by 2.4 million units, but according to Cook, channel inventory shifts accounted for 80 percent of this figure. Considering this, Cook added that in reality the dip in iPad sales is only 3 percent.

In the U.S. education market, the iPad is doing well, and 660,000 iPads were sold to the Los Angeles Unified School District in June. Cook noted: “We hit within the midpoint of the range we expected on iPad unit sales. It was not a surprise to us.”

The president and founder of Boston, Massachusetts-based Apple reseller Tech Superpowers, Michael Oh, agreed with Cook’s comments regarding the tablet market. He said: “I have definitely seen a larger number of people with Samsung phones – so Android isn't losing the entire war. It's just not winning the tablet battle in any way that I can see.” (CY) Link