Strategy Analytics recently released findings that Android sales have been much higher than iPad sales. We’ve seen the iPad stumbling since the launch of the Gen 4 iPad and the iPad mini in the fall. The closing experience gap between Android and iOS tablets has led to eroding demand and aggressive price cutting by US retailers Walmart and Best Buy for new iPads to drive up sales. The only ace Apple may have up their sleeve for Q3 2013 is the rush by parents to equip students with tablets. Apple’s bet on retaking the education market by partnering with textbook publishers could pay out this fall as an increasing number of institutions require iPads for classroom use.
Issue is that we are seeing sliding demand as we head into Back To School season. After a spring of iPad mini promotions we are seeing saturation effects across all the iPads with the exception of older iPad 2 models still being snapped up. The impact on mini demand by a small price drop shows a saturation of iPad with newer experiences not requiring the same upgrade path that the iPhone has over the years. We think Strategy Analytics is on the right path with Q3 being another week iPad quarter. If we see things change, we will let you know!