Thank Goodness for iPad
Even though iPads don’t get nearly as much time and attention as iPhones or even Macs, both AAPL investors and we here at CIRP are grateful Apple makes them. For us, they’re much easier to analyze, with only four basic models and a couple of sizes for two of them. Apple also doesn’t refresh them as frequently, so we can regularly make straightforward comparisons between quarters.
Investors like them, at least they did last quarter, because they grew the most of any Apple product. They also are the second largest product line, growing steadily, balancing out other products.
A brief look at the iPad product line helps illustrate its relevance. As we well know, Apple has a straightforward model lineup, with the premium Pro, near-premium Air, base model iPad, and smaller mini.
iPad Pro remains the most popular model, with almost half of all iPad sales in the most recent quarter (Chart 1). This is about the same share of sales compared to the year-ago quarter.
Chart 1: iPad models (Quarters ending September)
At the other end of the model lineup, iPad mini has the lowest share, at just under 10% for both the most recent quarter and the year-ago September 2023 quarter. Its distinct size, and presumably different use cases, appeals to enough customers that it earns a spot in the lineup.
Among full-sized models, we also have iPad Air and the basic iPad. The basic iPad traces its roots directly to the original iPad from fifteen years ago, when Apple of course had a single model and effectively invented the category. iPad Air echoes the MacBook Air, with a slim form factor and more accessible pricing than the Pro models. These two lines end up trading share. In the most recent quarter, the basic iPad did better, at about one-third of unit sales, up from just under one-quarter last year. iPad Air gave up share, going from one-quarter down to 13%.
iPad Pro clearly drives results, with the largest share at the highest price. iPad mini brings in specific use customers. The basic iPad and iPad Air fill the needs of the remainder. A nice, straightforward story that helps Apple continue to deliver its financial results.