Apple projected to make $200 profit on every iPad Pro sold

Apple projected to make $200 profit on every iPad Pro sold
Throughout the lifetime of the rumors, the expectations surrounding the iPad Pro have been quite high, and although the general consensus is that Apple has released nice hardware, the questions around who might realistically want to buy the device have caused launch quarter sales projections to drop by half.

Before the iPad Pro was revealed to the world, sales projections were around 4.5 and 5 million units in the device's first quarter on the market, but have since dropped to the 2.5 to 3 million range. Even so, RBC Capital Markets is estimating that Apple will earn $200 profit on every iPad Pro sold. With RBC projecting closer to the 3 million units sold range, that means $600 million in profit on $2.4 billion in revenue. 

We're not quite sure why other sources are trying to compare Apple's 2015 holiday quarter projections to Microsoft's Q4, which happens from May to July. But, for proper comparison, Microsoft reported $1.1 billion in Surface revenue for the 2014 holiday quarter (fiscal Q2 based on Microsoft's calendar). Obviously, quite a bit more sales for Apple expected, but we wouldn't be surprised to see Surface numbers bump up this holiday season as well. 

Related phones

iPad Pro
  • Display 12.9" 2048 x 2732 pixels
  • Camera 8 MP / 1.2 MP front
  • Processor Apple A9X, Dual-core, 2260 MHz
  • Storage 128 GB
  • Battery 10307 mAh

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49 Comments

1. zeeBomb

Posts: 2318; Member since: Aug 14, 2014

Its complicated to recommend a iPad pro tho.

9. Plume-Veil

Posts: 174; Member since: Nov 19, 2015

"Impossible to recommend it should be "!

30. cheetah2k

Posts: 2156; Member since: Jan 16, 2011

Money money money, makes me funny, in a rich mans world........ Meh, Apple's all about the $. How long is it gonna take you guys to realise by buying Apple, you're just feeding the biggest tech troll of the century?

34. AlikMalix unregistered

Show me a company that's making nice devices that's not about making money and when you buy from them you don't actually "feed" their profits and we can continue this conversation.

36. AlikMalix unregistered

Just because apple knows how to make good devices and make money at it but others cannot (even if they dont even have to put in OS development) doesnt mean, that all of a sudden, Apple is bad. Android manufacturers just arent good at properly running a porfitable business... they cant even make their own OS and use a third-party freeware OS, and then subsidize the cost with putting 3rd party bloatware just to make it worth while. It's a mess and you expect the android OEM's to make money? Grow the F up..

2. combatmedic870

Posts: 982; Member since: Sep 02, 2015

It they woluld have included a spot for the Ipencil (note series) and sold it with the iPad pro. They would have sold more. The cost of this device is ridiculous. Just simply too much.

11. Plume-Veil

Posts: 174; Member since: Nov 19, 2015

No its not, even its priced more, I fans and general public will still buy them. It only sells because f its logo.

19. j2001m

Posts: 3060; Member since: Apr 28, 2014

Android tablets are dead And Apple iPads will also soon be dead also It's now all about Windows 10 take tescos in the uk, the biggest supermarket, in all there shops, they just changed the basic tablet display from android to Windows 10 tablets and cheap laptops convetables , no joke, ranging from £99.99 for the tablet and the laptop from £179.99, I.e. They have gave up on android tablets and moved to Windows 10 and the £99.99 tablet is good, works with desktop apps, no joke, pocket/small pc on the go (also 8" ver going) http://www.tesco.com/direct/windows-connect-10-tablet-intel-atom-1gb-ram-32gb-black/630-1078.prd?pageLevel=&skuId=630-1078 Out of 84 reviews there was 3 under 4 star And you can easy use an hdmi on it to use as a full pc and so on, all very cool, it's game over for android tablets and Apple will soon stop selling also

20. j2001m

Posts: 3060; Member since: Apr 28, 2014

This above pc/tablet also comes with better free office then the iPad pro ther you have to pay for it

3. Wulfgardr

Posts: 73; Member since: Oct 29, 2014

It's a wonderful tablet experience, with some cool additions, if you really can spend that much and you enjoy having a PC & Tablet separately, why not? :)

6. guest

Posts: 368; Member since: Jun 13, 2012

Because it's neither a pc or tablet. It's got none of the advantages of a pc and all the weaknesses of a tablet. When you need to connect to your competitor to backup and sync files that should tell you something.

10. Finalflash

Posts: 4062; Member since: Jul 23, 2013

Very good description of the iPad pro there, +1.

28. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

My question would be, why should you need 2 devices? Why does the PC have to be separate from the tablet? Why not one in the same? Your question is like, lets own a car and a huge SUV too. Why? Why not just get a single crosswover and be done with it? For me I'm going to take the Surface off the table just for argument. Look at the iPad Pro for what it costs. Just for cellular you need to spend over $1000. Then you have apps that are free to roughly $99, but that $99 app does do what the same app for $99 does on a PC. Consider what an IPad is good at doing. Its good for email, it good for reading books/magazines, its good for video calling, its good for web surfing and it does offer some productivity, as long as your needs dont exceed what the tablet can do. Now, once you needs do exceed what a tablet can do, whether its an iPad or a Galaxy or some other brand, your alternative is, you have to come back to your PC. Now lets put the Surface back on the table. Why? Because when you need a tablet, you take off the keyboard, put away the mouse and you can still do everything any ARM based option can do. Then when you need extra? You slap the keyboard on grab the pen or mouse and move forward without having to switch. To me it seems liek a no-brainer, unless you have no brain. ARM tablets have reach the top of what they are capable of doing. They are never goign to do what an x86 can on the same level. Plus, if a limited tablet is goign to cost you more than a PC, why not just get a PC? You dont have to get a Surface. Lenovo makes a very nice Windows Tablet, so does Asus and Dell. Me? I speak from experience. I sold my NotePro which is way better than the iPad Pro in many ways. I sold an iPad Air 2 and got the Surface Pro 4. I still have an iPad mini for those games and apps I liek on iOS that I know I cant get on Windows. So I don't need a $700+ device for that stuff. a 4250 iPad was goo enough. Display is big enough, price is what I wanted to pay and it does the job. I dont download any new stuff on it. Just use my old stuff. What Apple could have ddone was made the iPad Pro run OS X and with a way to either switch to iOS for mobile games, or ran it as a layer or a VM inside OSX. But no, they rather knock a converged device. Some converged devices are better. That's why multi-functions printers are top sellers, that's why Crossover SUV's are now just as prominent as small cars. The fact is it does depend on what you need. But again, if you can have better for the same price, why would anyone in their right minds buy something less?

40. AlikMalix unregistered

Techie that was a good read... you explained your point well and it makes perfect sense.... +1 from me... But some people just want a larger tablet that contours your typical Letter Page size with iOS to boot. With specific feature set - my opinion still stands - that the ipad pro was designed for very specific consumer and not for typical home use. it's price and Hardware further underlines my theory. its not designed for someone who needs a laptop. consider my point with the notion that many just love iOS - and now there's a very well made creativity tool that adds another option when theyre shopping for an ios tablet specifically. your point is based on whether apple is trying to out do a pc/tablet hybrid - and theyre not.and im pretty sure apple knows theyre not gonna steal any surface customers with the ipad pro. me?, i dont need a big ipad (my ipad 3 is running great with ios 9). but i'd buy the apple pencil if it worked on my ios devices - so a bit disappointed there...

43. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Yes, but what specific consumer? Yes I do agree that some people might just want an even larger tablet. But who? There were larger tablets before the iPad Pro. I am not sure how many Tab/Note Pro's were sold, but there are a lot of them on ebay up for grabs. Many of them brand new or slightly used for under $600 which is what they shoild have cost in the beginning. The Note Pro was big. But in honesty, even though it had a nice featureset, it wasn't anymore better than using the 10 inch model. The things you mentioned aren't actually better on a bigger device. Bigger means heavier. Means less portable. Means more pricier. I don't want to buy a device I have to find a use for, I want one that I can use more than just once in a while. I probably used my Note Pro, less than 30 times in the 5 months I had it. A total waste of money. I still.owed More for it vs what I sold it for so still had to come out of pocket to pay it off in order to sell it. Cost me 700 to get it off my account and I got only 500 for it. Which is just over 50% it's original retail cost. I'm not saying no one could make use of the iPad Pro. I think it is a cool device. But most are going to buy bit for the ccool factor and then it will just be laying around afafter the cool factor wears off. For me I don't see it as a pro level device. But it doesn't do anything you can't already do on the iPad Air. At least with the Note Pro, features were added above other models, though they all support the same basic features. Yes they aren't going to steal any Surface users, in fact they may push people into buying one. Again to spend $800 Tonuse apps that cost a buck or 2 on average just ruins the pro moniker. The Note Pro wasn't that much better either. Yes I agree 100% about the pencil. To add Apple was foolish to not at least include it with the tablet. How you gonna advertise tthe thing she it drawing but not include a drawing tool? Then charge $100 for it too? The Surface pen at $60 is pricey too, but it will work on the Surface 3. To me anybtablet that costs more than $700 just isn't worth it. I don't care who makes it. I found out the hard way and I knew better. When you get that close to PC pricing I expect a device to be comparable and so far those devices arent. Shame on you Samsung and apple for your "pro" devices that aren't pro enough IMO.

47. AlikMalix unregistered

I guess it's not for you... not for me either.. but I'll take same capabilities in a iPad 3 size... Those that seek mobility can opt for a compact iOS devices... but there are those that need bigger screen (emphasis on need). And all I see is the artistic, photography editing, video editing, and design oriented people (that prefer iOS) that will benefit from a bigger sized iOS device. That's it. Whether it's pricey or not - it's up to consumer to decide.... Apple, Samsung, etc... owes no favors to consumers - they price based on demand - and I bet if Apple devices drop demand - the prices will follow - it's basic economics --- so I'm not going to debate on surface price vs. ipad pro price. You have a valid opinion on what is best priced vs. value to you and I'd be an idiot to dispute that - but those that do buy the iPad pro find more value in that device than a cheaper _________ (insert device here). Maybe it's ecosystem, maybe it's app selection, maybe it's design, maybe it's one marginally tiny little querk in the software that makes them buy a more expensive iPad Pro - that's their business. But if it sells - it's price right. If it doesn't - it's priced to high... we'll just have to see...

4. downphoenix

Posts: 3165; Member since: Jun 19, 2010

Only $200 profit? Wow Apple, why not $400+ like you do for the iphones?

7. kkmkk

Posts: 699; Member since: May 06, 2013

actually they do 500$ to 600$ on the 128gb model

25. pt020

Posts: 150; Member since: Apr 08, 2014

on the 128GB it is more like 800$

13. janno

Posts: 144; Member since: Aug 19, 2014

They would get $4 profit if they used an Intel Core M, like other OEMs. Intel is overcharging OEMs on its chips through the nose.

16. guest

Posts: 368; Member since: Jun 13, 2012

But at least people would buy it and find it useful.

17. Hexa-core

Posts: 2131; Member since: Aug 11, 2015

At least, Intel's Skylake Core i7 is a gazillion times more powerful than Apple's A9. So it's demanding price is well worth it. Heck, Microsoft makes more than $4 profit from thier Surface PROs.

29. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Really? The Surface pro 4 with Intel M3 is only $800. Will do way more being x86 that whatever AXX thrown into a iPAd for the same price. Also, many PC's start at $700 with the same CPU inside. So what high price are you speaking of? Here is a fact. No matter what PC, no matter what brand; it will do more for less money vs anything you buy from Apple. It doesn't matter what you like and you can buy all the Apple products you want; it will never change that fact. Look at the Surface for under $1000 vs a iPad Pro for $1000. For me, I bought the SP4 with 128/4GB/i5 for what? UNDER $1000. Oh and it comes with expandable storage, has a very beautiful high density display which is only just shy of the iPad Pro, i can work with any file type of my choice, i can have default apps and more. With x86 you get what you pay for and sometimes you dont. For me, I skip the brands that don't. I use to buy Dell, now I buy HP; but I plan to drop them and go Lenovo. Why? Because I dont have to be loyal because all my stuff works on any brand vs Apple where even if you dont want to be loyal, you have too if you've invested a lot of money.

5. xfire99

Posts: 1205; Member since: Mar 14, 2012

200US profit is just to little for Apple. Doubt ipad pros components cost 600 bucks. Must be some miscalculations here. :p

44. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

But if you sell 1M of them , that's $200M in free money.

8. Zomer

Posts: 361; Member since: May 31, 2013

Hahahahahah iPad Pro components don't cost $600, f**king joke.

12. Martineverest

Posts: 521; Member since: Oct 27, 2015

IPad PROfit is just a MOBILE LAPTOP for WRITING

14. keithtae

Posts: 564; Member since: Mar 25, 2015

IPad pro? Just an oversized tablet with the same thing in it. Also, made by a greedy company.

15. j2001m

Posts: 3060; Member since: Apr 28, 2014

Ms pro 4 basic model, never makes $200 per products, they only make cash I be thinking on the upgraded spec vers at the hi end range I be thinking Apple makes more than $200 on the bigger 128mb ver of the iPad pro

18. Hexa-core

Posts: 2131; Member since: Aug 11, 2015

With Apple, you do not get more, you just pay more.

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