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What Can We Expect from Apple in Fiscal 1Q17? – Market Realist

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What Can We Expect from Apple in Fiscal 1Q17? PART 7 OF 12

iPad market share stands at 21.5%

According to Statista, Apple’s (AAPL) iPad market share has fallen considerably, from 60.3% in calendar 2Q12 to 21.5% in calendar 3Q16. This fall is primarily due to increasing competition from established players such as Samsung (SSNLF), Lenovo (LNVGY), Huawei, and Amazon (AMZN), who had market shares of 15.1%, 6.3%, 5.6%, and 7.3%, respectively, at the end of 3Q16.

iPad shipments fell 6% in fiscal 4Q16

In fiscal 4Q16, Apple (AAPL) shipped approximately 9.3 million iPad units and generated revenue of $4.25 billion. In comparison, it shipped 9.9 million units in fiscal 4Q15 and generated revenue of $4.27 billion. While shipments fell 6% YoY (year-over-year) in fiscal 4Q16, revenue from this segment fell marginally. iPad’s ASP (average selling price) rose $26 in fiscal 4Q16 to $459, driven by the new iPad Pro.

How Will Apple’s iPad Business Perform in Fiscal 1Q17?

According to IDC, the worldwide tablet market will continue to shrink in 2016. It expects tablet shipments to fall 11.5% YoY in 2016 to 183.4 million units. Prior to this estimate, IDC had expected worldwide tablet shipments to fall 5.9% YoY to 195 million units in 2016.

Radical iPad redesign

Apple’s (AAPL) 2017 iPad could feature a significant redesign. According to a report by Japan’s Mac Otakara, next year’s iPad could come without a physical home button. Such a radical design change could boost the iPad’s appeal and jumpstart Apple’s tablet sales.

The home button in the current iPad is used for several functions, such as unlocking the device and as a shortcut to the home screen from an app. Some analysts have argued that Apple could move the home button to the back of the iPad, as seen in new Android devices such as Xiaomi’s Mi Mix. Alternatively, Apple could integrate its TouchID and shortcut features into the new iPad’s display. The next iPad is expected to come out in March 2017.

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