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Brier Dudley's blog

Brier Dudley offers a critical look at technology and business issues affecting the Northwest.

July 23, 2013 at 2:04 PM

iPad sales plunge; iPhone and iTunes carry Apple

Apple’s iPad is becoming more like a PC – and seeing sales fall along with the rest of the computer hardware industry.

Apple today reported that iPad sales fell 27 percent in the last quarter, ending three years of spectacular growth for the company’s web tablet.

Apple's feeling the iPad pinch

Apple’s feeling the iPad pinch

Perhaps the iPad is being overtaken by cheaper Android tablets. Or maybe most people who want and can afford an iPad already have one.

PC sales are also bottoming out so maybe people are just spending all their money on phones now.

Sales of iPads fell 27 percent from the same period last year – to $6.4 billion – and 27 percent sequentially from the previous quarter. By unit volume, the iPad business declined 14 percent year over year and 25 percent sequentially, which indicates that the mix of iPads sold includes more lower-priced versions.

Overall Apple sales grew just 1 percent compared with the same period last year and profit fell 22 percent. Apple  reported sales of $35.3 billion and profit of $6.9 billion, compared with sales of $35 billion and profit of $8.8 billion a year ago.

Sales of iPhones grew 15 percent year over year,  despite falling 21 percent from the previous quarter,  while Mac sales fell 1 percent.

In the news release, Apple Chief Executive Tim Cook noted the strong performance of iTunes and services, which grew 25 percent to $3.9 billion.

Here’s a summary:

appppl

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