Apple makes same amount of money even with low iPad sales

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Today is Apple’s much anticipated event for the MacBook Pro launch, and it’s the day after the Microsoft Surface PC event. Apple has recently reported its fourth quarter profit from this year, displaying a drop in iPhone sales for the third successive quarter. iPad sales have also dropped throughout the last few years, although tablet sales in general have declined regardless of manufacturer, and Android tablets have been winning in terms of sales.

Even though the iPhone revenues have dropped and Apple are now selling less iPads, the actual revenue that Apple is generating from iPads have shown no change –and this is significantly due to Apple’s strategic tactics of placing their trademark tablets at the premium end of the huge tablet market. This greatly contrasts with the decline in iPhone sales which was 13% as well as the 17% decline in Mac sales.

The launch of the premium 12.9” iPad Pro in November 2015 has shown Apple’s strategy to target the high-end consumer and the price (£899 for 128GB) reflects that tactic. The iPad Pro does have various features which the average iPad user will not require, however this has allowed Apple to specifically promote the device to graphic designers, heavy-duty users or innovative app developers –and it’s an approach which has been hugely successful for the company. Furthermore, the 9.7” iPad Pro which was released a few months after the 12.9” version has allowed Apple to combine the target user and premium market factors with a lower price point (£639 for 128GB), widening the consumer market for it.

Although Apple has been successful so far in their choice of market and subsequent revenue, it is not certain whether the company will continue to invest in the tablet market as robustly as it has done previously. The overall decline of interest in tablets and Apple’s plans to develop thinner and more powerful MacBook’s means the two lines could possibly merge. One thing’s for sure, we may not be surprised to see a significantly altered approach from the company in the future.

We are looking forward to getting more information on the event, and consequently Apple’s winning strategies; however pictures of the MacBook Pro have leaked showing a Magic Toolbar, Touch ID and other exciting features!

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