uploads///apple ipad shipments

Why Apple iPad Is Losing Market Share to Google

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Apr. 10 2018, Updated 9:30 a.m. ET

Apple iPads slowing down

Apple (AAPL) has been witnessing declining year-over-year (or YoY) iPad sales since 2014. Apple sold over 43.7 million iPad units in fiscal 2017. In contrast, it shipped 71.0 million iPads in fiscal 2013. In fiscal 1Q18, Apple’s iPad shipments increased only 1% YoY to 13.2 million units.

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Reasons for sluggish growth of iPads

Apple launched its first iPad in 2010, and since then, the company has rolled out six versions of the iPad and sold more than 350 million units. At the beginning of 2012, the iPad was the leader in the tablet market and accounted for almost 60% of total global tablet shipments.

Apple’s iPad is one of the most expensive tablets, and therefore, its market share started falling over the years due to the availability of low-cost substitutes. Increasing competition from Samsung (SSNLF) and Lenovo also hurt iPad sales. Also, smartphones are now replacing some of the demand for iPads.

Initiatives in the education market

Amid slowing iPad sales, Apple is gearing up to offer lower-priced iPads to capture the education market. Apple has recently launched a new iPad tablet for $299 in schools and $329 in other US markets. Apple iPad shipments got a push when the company released its most affordable fifth-generation iPad for $329 in March 2017.

However, Apple iPad is still more expensive than Google’s (GOOGL) Chromebook. According to Futuresource Consulting, Google’s Chromebook represented nearly 60% of mobile devices sold to US K-12 schools in 4Q17 compared to Microsoft (MSFT) and Apple, which had about a 20% market share in 2017.

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