Report says Apple iPad 2 sales missed company's expectation for Q3

Report says Apple iPad 2 sales missed company's expectation for Q3
Despite setting a new record by selling 13 million Apple iPad 2 units in the third quarter, the Cupertino based company failed to live up to external expectations for tablet sales in the period. During the same quarter last year, 9.25 million copies of the iPad were shipped. On a sequential basis, the 13 million tablets represent a 36.8% increase from this year's second quarter results. Wall Street was much easier to please as analysts were looking for Apple to ship 11 million units of its tablet, a figure handily topped by the tech giant.

A chart that accompanied the story shows that the entire tablet market has been experiencing a slowdown in sequential growth. From a 60.9% gain in tablets shipped from Q1 to Q2 this year, the estimated 18.7 million in total tablet sales world wide in the third quarter represents a 27.5% improvement in shipments from the previous three month period. To show how the Apple iPad 2 dominates this market, removing sales of Apple's tablet results in only a 10.1% gain in estimated sequential sales for the third quarter.

The tablet market might get a shot in the arm during the fourth quarter when the budget priced Amazon Kindle Fire gets launched. Set to be released on November 15th for $199.99, the Kindlle Fire makes extensive use of Amazon sold apps. content and cloud services.

source: DigiTimes


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iPad 2
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  • Camera 0.7 MP / 0.3 MP VGA front
  • Processor Apple A5, Dual-core, 1000 MHz
  • Storage 64 GB
  • Battery 6944 mAh

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19 Comments

1. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

The non iPad tablets are gaining steam. The Kindle Fire & the Android ICS quad-core tablets will make a huge push in 2012. Let's not forget Windows 8 tablets in 2012 as well.

17. ardent1

Posts: 2000; Member since: Apr 16, 2011

Don't forget the android device fire sales: Acer cut their prices, Vizio cut their prices, Motorola cut their prices, HTC cut their prices, etc. It's not hard to sell android tablets when they are being sold at or under costs. Last time I checked, the Vizio 8" tablet was going for $234 at Costco.

2. arcq12

Posts: 733; Member since: Oct 13, 2011

I can see that other tablets will gain more market share by 2012 but iPad 3 will still dominate. I'll buy the iPad 3 once it's released. =)

4. arcq12

Posts: 733; Member since: Oct 13, 2011

the reason why is because tablets nowadays are mostly used as toys. iPad has the most games and apps that are optimized for it. and more people likes the iOS ecosystem better. i prefer the Android for my phone though i'd like to have the iPad 3 for my games and stuff..

9. Commentator

Posts: 3722; Member since: Aug 16, 2011

Interesting take. I actually see it the other way around. As far as phones go, I'm relatively indifferent to OS choice. On tablets, though, I prefer Android by far simply because of it's much greater potential, i.e. full USB support and productivity (especially with the ASUS Transformer with its 2 USB ports + keyboard). I agree with you though that tablets are much more toys than productivity devices, which will probably change once Windows 8 comes on the scene.

10. arcq12

Posts: 733; Member since: Oct 13, 2011

i agree. Windows 8 tablets have a very bright future. But as I've said, iPad 3 will still dominate 2012.

15. SuperEd

Posts: 132; Member since: Oct 18, 2011

Agree that iOS will dominate for a couple years, but once W8 is unleashed, say bye bye to the iOS as it will turn to Apple Sauce!

12. Pdubb

Posts: 249; Member since: Aug 08, 2011

Sight, unseen you're gonna get the iPad3 not knowing anything about it? What if it's just a small upgrade of the iPad2 will you still get it? Just curious!

13. arcq12

Posts: 733; Member since: Oct 13, 2011

don't care about how much update it gets from the previous version because it's gonna be my first iPad.. never had previous versions..

3. ryq24

Posts: 874; Member since: Oct 17, 2011

ipad is too expensive just like iphone, so it is natural that it will start to lose market share as more brand enter the tablet market at cheaper price.

5. ivanko34

Posts: 617; Member since: Sep 04, 2011

you are right that's why apple wants to shut down competition

18. ardent1

Posts: 2000; Member since: Apr 16, 2011

It's more like the competition is shutting itself down. The android OEMs are learning the hard way it's tough to compete against Apple in the 10" tablet marktet. Put it this way, if Apple could sell a reburished iPad for $299, it's just too hard to compete. The parts and labor for a 10" device is about $260 to $300, and once you add 25% for the gross margin mark-up, and say a 15% brick and mortar retailer mark-up, that android device is no longer price competitive.

6. taco50

Posts: 5506; Member since: Oct 08, 2009

I'm thinking the iPad can do to the tablet market what the iPod did to the music player. As I've said there is no tablet market, only an iPad market.

8. arcq12

Posts: 733; Member since: Oct 13, 2011

course there is, doesnt mean that the iPad leads the Tablet Market, you will start calling it iPad market. what about the smartphone market? Android leads right? should we call it Android Market? =p

7. Kease

Posts: 36; Member since: Sep 30, 2011

ipad3= flash (sans Jobs?)

11. Immolate

Posts: 310; Member since: Jun 17, 2011

The first crack in the iPad's armor. I expect the drama to be analogous to the smartphone market, for much the same reasons. People crave the new, the different, the unique. They like to buck the trend and go their own way. The plethora of Android tablets out there mean that, whatever weakness iPad has, Android will exploit. This constant drumbeat of alternatives, engineered to compare favorably to the iPad in one or more ways, will continue to chip away at Apple's behemoth until the dam breaks and Apple becomes a niche player. Of course it will be a significant and lucrative niche, so Appleseeds have nothing to complain about.

14. Stuntman

Posts: 843; Member since: Aug 01, 2011

If 13 million failed to meet expectations, what exactly are the expectations? At least provide some complete information. For all I know, the expectations could have been 26 million units in which case Apple only sold half of what was expected.

16. SuperEd

Posts: 132; Member since: Oct 18, 2011

Apple Sauce.

19. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

It's also being reported that Apple missed the expectations of Wall St on revenue as a whole.

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