Apple: iPad Sales at High End of ‘Internal Expectations’, 2/3 of Users New to Device [iOS Blog]

During its financial results conference call for the first calendar quarter and second fiscal quarter of 2014, Apple shared new details on the state of the iPad, including information on sales expectations, the launch of Microsoft Office for the device, the education market, and the use of the tablet compared to competitors.

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While the company’s 16.35 million iPad sales fell short of analyst expectations, Apple notes that sales came in at the high end of internal expectations citing two factors: An increased iPad channel inventory in the March 2013 which has since been “significantly” reduced this year, and the ending of the December quarter with a substantial backlog of iPad mini units that were shipped in 2013. The company also added that it hit iPad supply/demand balance earlier this year.

Apple also noted that two-thirds of people registering an iPad in the last six months were new to an iPad, while half of people registering an iPhone were also new to an iPhone. Citing research from App Annie and Chitika, the company stated that the iPad generated 4x mobile web traffic than all Android tablets combined, and that two-thirds of people planning to purchase a tablet within 90 days would be purchasing an iPad.

CEO Tim Cook commented on the recent launch of Microsoft Office for the iPad, stating that the addition of the program suite “helps” and that it would have been better for Microsoft to release the program “earlier.” Overall, Cook noted that customers were “responding well” to Office in a field of many alternatives that were brought to the market, including Apple’s own iWork suite of apps for the iPad and others.

Cook also commented on the use of the iPad in education and elsewhere, stating that Apple has a 95% share in the market and that the company’s focus in getting into more schools to use the tablet. Calling the iPad “the fastest growing product in Apple’s history,” Cook added that the company is determined to stay focused on the things “we do best” and noted that launching the iPad was about getting the details the right as opposed to launching first.

Apple is expected to introduce updated models of the iPad Air and Retina iPad Mini this year, with some rumors suggesting that the company will add a larger “iPad Pro” to its tablet lineup in the near future.



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