Growing the installed base
There are a couple reasons that Apple will not care whether its cannibalizing itself. The Cupertino tech giant will likely end up selling more systems at the lower $600 rate, although Apple has been actively moving the narrative away from unit volumes in recent years. The business stopped reporting unit volumes in 2018.
” [T] his is a bit like if you go to the marketplace and you push your cart up to the cashier and she states or he says, How many systems you have in there?” CEO Tim Cook stated at the time. “Its sort of– it doesnt matter a lot, how lots of systems that remain in there in regards to the total worth of whats in the cart.”
The total value of that “cart” loosely refers to the iPad sections total revenue, which remains healthy and steady. Second and more notably, Apple is far more concentrated on growing its services service, driven in big part by hundreds of countless paid memberships that are billed through its platforms.
Its more crucial for Apple to grow the iPad installed base– Cook disclosed today that 53% of iPad purchasers are new to the tablet– and generate income from those users for the long haul with services.
Is the 11-inch iPad Pro worth $200 more?
The distinctions between the iPad Air 4 and the 11-inch iPad Pro are negligible. The iPad Air 4s screen is 0.1 inch larger, the video camera system is less innovative and lacks lidar, theres no ProMotion technology for 120 Hz refresh rates, and there is no TrueDepth electronic camera for Face ID. Are those features worth the $200 distinction in price?
In addition, the iPad Air 4 has Apples newest and greatest silicon, the A14 Bionic chip that will really likely power the next iPhone, as well as the first Arm-based Mac thats due out this year. The iPad Pro released earlier this year is powered by an A12Z Bionic chip, which is just the exact same chip from 2018 however with an inactive GPU core activated. The A14 is perhaps 2 years ahead of the higher-end designs processor.
Creative professionals such as photo or video editors may obtain higher value out of greater refresh rates or greater storage capacity, but the average customer most likely will not. The bigger 12.9-inch iPad Pro is rather more separated due to its sheer size, making it a more viable laptop replacement.
Previously this week, Apple showed off the brand-new iPad Air 4 at its virtual product event, and the tablet is sure to eat into iPad Pro sales.
The differences in between the iPad Air 4 and the 11-inch iPad Pro are minimal. The iPad Air 4s display is 0.1 inch larger, the electronic camera system is less innovative and does not have lidar, theres no ProMotion innovation for 120 Hz refresh rates, and there is no TrueDepth camera for Face ID. Additionally, the iPad Air 4 has Apples latest and greatest silicon, the A14 Bionic chip that will extremely likely power the next iPhone, as well as the first Arm-based Mac thats due out this year. The iPad Pro released earlier this year is powered by an A12Z Bionic chip, which is just the very same chip from 2018 but with an inactive GPU core activated.
iPad Air 4. Image source: Apple.
“If you do not cannibalize yourself, someone else will,” Apple (NASDAQ: AAPL) co-founder Steve Jobs notoriously said. That viewpoint has actually guided the Mac maker for years, initially referring to how the iPhone would cannibalize iPod sales considering that the smartphone could likewise play music. Previously today, Apple revealed off the brand-new iPad Air 4 at its virtual product event, and the tablet makes certain to eat into iPad Pro sales.
Lets go through the potential ramifications.
