The Sales by product analysis confirms the death of the iPod, the continued success of the iPhone and a potential struggle for the iPad. iPod sales were down by 36% compared to prior year, the perfect product life cycle chart is in completion. iPhone sales were up by 13% compared to last year, the success of the iPhone continues. iPad sales were down by 9% following a disappointing second quarter set of figures, down by 16%.
So what is happening to the iPad? According to IDC The worldwide tablet grew 11.0% year over year in the second quarter of 2014 (2Q14) with shipments reaching 49.3 million units according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Tablet Tracker. IDC believes the market will experience positive but slower growth in 2014 compared to the previous year.
"As we indicated last quarter, the market is still being impacted by the rise of large-screen smartphones and longer than anticipated ownership cycles," said Jean Philippe Bouchard, IDC Research Director for Tablets. Despite declining shipments of its iPad product line, Apple managed to maintain its lead in the worldwide tablet market, shipping 13.3 million units in the second quarter generating a market share of 27%.
So what does this mean for Apple, - the Phablet market is emerging as a viable segment, challenging the iPhone and the IPad. Expect a new product entry from the Apple team - accelerating the slow down in iPad sales and the formation of the life cycle chart. JKA