Some interesting things have been going on with Apple of late. Firstly, the announced a bumper quarterly profit which broke all records, mainly on the back of new iPhone sales. However, interestingly they also reported a significant drop in iPad sales. So what does that mean?
Apple faces challenges in the tablet market from the plethora of Android devices that cover just about every corner of the tablet market. This compares against Apple devices which are definitely a premium offering (that’s why they can generate such high quarterly profits).
It also seems that the iPad mini market has been swallowed up by the growth in ‘phablets’, i.e. phones that are almost the same size as tablets. The recent iPhone 6 Plus with its significantly increased screen size is an acknowledge by Apple of that trend. It certainly appears that many well heeled technology users are more than prepared to pay a premium for large devices.
Tablets certainly have their place in the market but the phone market seems to be by far the more important and the most profitable. It is also the one that Apple and other manufacturers are focusing on.
There is no doubt that Apple remains a very powerful and profitable business but even it can’t ignore the mobile market trends and the preference of uses on larger factor phone devices.
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