Apple is expected to introduce some attractive features in the iPhone 6 (Part 3 of 4)
Larger screen for iPhone 6 and the iPad mini sales
In the previous article, we discussed why it’s so important for Apple to introduce an iPhone 6 with a larger screen. According to KGI Securities analyst Ming Chi-Kuo, the screen sizes of the two models can be 4.7 inches and 5.5 inches, much larger than the 4-inch screen size for Apple’s latest model, iPhone 5S. However, a larger screen can mean that consumers no longer need the 7.9-inch iPad mini, with a 5.5-inch iPhone 6 very much sufficing all their needs. And so, Apple could end up cannibalizing the sales of its own iPad mini, and to some extent, the sales of 9.7-inch iPad Air.
iPad sales below expectations: Already a sign of worry for Apple
Apple (AAPL) sold 16.4 million iPad units in fiscal Q2 2014 quarter, a 16% decline over the same quarter last year. This was a big fall, considering that the overall tablet market is seeing fast growth. According to IDC, the tablet market can grow from 195 million in 2013, to 349 million by 2015, at a CAGR of 34%. In the otherwise outstanding Q2 results, iPad sales were a bit of a letdown for Apple. As the above chart shows, although Apple is still the leader in the tablet market, its share in the market is rapidly declining. Apple’s share declined from 53% in 2012, to 36% in 2013, Samsung’s (SSNLF) share increased from 7.4% to 19.1%, ASUS’ (AKCPF) share increased slightly, and Amazon’s (AMZN) share declined, while Lenovo (LNVGY) managed to see a growth in its share.
Apple may still regain strength in the tablet market
All is not lost for Apple in the tablet market. In a February survey, ChangeWave measured a 98% customer satisfaction rate for both the iPad Air and iPad Mini with “Retina display.” The survey also found that among the people planning to purchase a tablet within 90 days, two-thirds plan to buy an iPad. If the survey’s results come true, then the iPad is bound to gain share in the tablet market.
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