Will New iPads Reignite Tablet Market?

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In this edition, we answer the question about Apple’s new iPads and what’s in store for the tablet market.

Earlier this week, Apple Inc. finally updated its iPad lineup for the first time since 2022. While the hardware improvements have been applauded by some reviewers, many seem unhappy about the absence of any significant software upgrade.

According to IDC, global tablet shipments hit their lowest levels last year since 2011. This was primarily due to the economic downturn, project delays, spending freezes, and people giving priority to things beyond consumer electronics.

At the end of 2023, however, analysts expected some rebound opportunities while also acknowledging challenges in the tablet market.

Therefore, the question remains, will the newly unveiled iPad Air 6 and iPad Pro change the direction of the tablet market toward a more optimistic track, or will we have to wait for something more exciting to happen? 

Predictions, Competitors, And More: What The Future Holds

According to the latest report by Canalys, tablet deliveries worldwide went up marginally by 1% in the first quarter of 2024, hitting 33.7 million units. This small rise comes after four consecutive quarters of year-on-year declines.

"Despite the extended period of cautious consumer spending on tablets, vendors have remained ambitious," said Canalys research manager Himani Mukka. 

In particular, there is excitement about Apple integrating stunning OLED screens into iPad Pros, and companies working on foldable designs and eye-wear-free 3D content viewing.

Anuroopa Nataraj, a senior research analyst at IDC, said, "The real gains will come from the next refresh cycle, followed by growth within commercial segments as more tablets are used in the education sector and the gig economy."

"That said, there is potential upside driven by AI capabilities similar to what's expected in other device types."

Here’s What Apple Announced

Apple announced two new iPads after a long wait of 18 months with some important hardware upgrades. While the top-tier iPad Pro got a major spec bump with the brand-new M4 chip at its heart and a stunning OLED display, the iPad Air series now comes in two display sizes for the first time.

According to Deepwater Asset Management’s Gene Munster, the new iPads could give a “nice boost” to iPad sales this year, but the category will likely decline 2% over the next two years. He blames this on “infrequent upgrades.”

While some have called it a “mere spec bump” and not much else, the M4 chip is still noteworthy on its own – Apple has considerably reduced the time gap between the launch of two M-series chips.

Before the “Let Loose” event, Bloomberg columnist Mark Gurman stated Apple should strive to make iPads as good as laptops, but in a way that serves the needs of tablet users. The tech giant should stop fearing that powerful iPads will cannibalize Mac sales. “The days of purposely holding back the iPad need to end.”

What Experts Have To Say

Experts think Apple will remain the leader despite a challenging market.

“Apple is expected to maintain its leading position in the tablet market in the foreseeable future despite persistent challenges and weakened growth. Holding back the launch of new models in 2023, Apple still managed to maintain its solid leading position against competitors,” Counterpoint Research’s associate director Diz Lee told Benzinga.

As far as the U.S. market is concerned, Lee says “There will be no one to beat Apple.”

IDC analysts also echoed similar sentiments, saying, “Even without launching new iPads in 2023, Apple still maintained their lead which speaks volumes about their hold on the market.”

All in all, despite challenges, top analysts expect Apple to not only remain the market leader, but they think Cupertino is “well-positioned” to increase revenue as well.

As far as the wider tablet market is concerned, the analysts at IDC think that the tablet market is beginning to show signs of recovery.

Looking Through The Crystal Ball

Overall, analysts believe the new iPads will give a boost to Apple’s revenue this year. The broad consensus is that Cupertino will continue to remain the dominant player in an otherwise struggling market.

Apple’s focus on bringing on-device AI to its products could also further boost tablet sales. The M4 chip, with its significant AI upgrades, could act as a tailwind not just for Apple, but also the overall tablet market.

Both IDC and Canalys agree that Apple continues to remain at the top, followed by Samsung, Huawei, and Lenovo, in the tablet market.

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