Apple reports strong quarter but the iPad is in serious trouble

Andre Yoskowitz
27 Oct 2015 22:46

Apple reported their quarterly earnings today, with all metrics basically in-line.
The company reported $51.5 billion in revenue, and $11.1 billion in net profits, setting a 12-month corporate record for profits at $53.4 billion.
Apple sold 48.05 million iPhones, a bit under expectations, but still good for a 22 percent increase year-over-year. The company says it expects to sell between 74-76 million iPhones for the holiday quarter, growth of under 5 percent year-over-year at best.
Macs continued to see low single-digit growth, and margins increased to 39.9 percent compared to expectations of 39.3 percent. Apple also now has $206 billion in cash, a number that is hard to fathom.
On the other side, the iPad seems to be in serious trouble, with shipments down 20 percent year-over-year to 9.88 million units; the lowest number since 2011. It is becoming increasingly clear that the tablet market has peaked, and that owners are not upgrading on a yearly cycle but rather every two or three years, if at all.

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