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How Did Apple’s iPad Segment Perform in Fiscal 4Q16?

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Nov. 1 2016, Updated 2:18 p.m. ET

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.

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Tablet shipments expected to fall to 183.4 million units

According to IDC Research, 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.

IDC expects this market to return to growth between 2018 and 2020. In 2020, IDC anticipates unit shipments of 194.2 million tablets. Demand for detachable devices is expected to rise over the next few years. Hybrid tablets are expected to rise from 16.6 million units in 2015 to 63.8 million units in 2020.

According to KGI Securities analyst Ming-Chi Kuo, Apple will ship between 40 million and 42 million iPads in 2016. This amounts to a 16% fall YoY. However, analysts expect revenue to remain strong due to a rise in the ASP of the iPad Pro.

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