Apple iPad lost to "free"

Once the iPad was launched, it posed a great threat to notebook computers. However, since June 2013, iPad sales have suddenly started to decline, and Apple has not been able to give a clear explanation for the reason for the sharp drop in sales.

This week, market research firm NPD released a set of data that explains the reasons from a new perspective. As large-screen smartphones become increasingly popular, the iPad must not only ensure that its market is not cannibalized by these products, but also compete with free products.

NPD has counted the number of tablets connected to the mobile Internet in the United States. According to statistics, in 2014, there were 18.3 million tablets connected to the mobile Internet in the United States, a year-on-year increase of 90%. Such a large increase is due to the significant price cuts and free giveaways launched by mobile operators in order to increase the number of customers.

NPD said in the report that such a strategy has brought benefits to mobile operators. Thanks to the promotional activities of mobile operators, a total of 8.7 million new tablet users with mobile Internet access were added in the United States in 2014.

However, Apple did not benefit from the various activities of the operators. Apple's wireless operator partners gave their customers free low-end tablets, and customers only needed to pay an extra $10 per month to continue using their existing data packages. As the creator of the tablet market, Apple sold a total of 63.4 million iPads in 2014, a year-on-year decline of nearly 15%.

NPD Group analyst Brad Akyuz expects the growth of tablet Internet data subscription services to slow in the coming years as larger-screen smartphones become more popular and more people use smartphones as mobile hotspots to provide mobile data connections for tablets.

In a conference call with analysts on Monday to share Apple's fiscal second-quarter 2015 results, CEO Tim Cook made an impassioned defense of the iPad's long-term prospects, saying that while iPad sales growth in other markets had "slowed," it had its second-best quarter in Japan and a record in China.

"This month, the iPad officially launched five years ago. Since its launch, iPad has been the number one in sales, application quality and quantity, usage rate and most importantly, customer satisfaction rate. Moreover, according to the latest data from NPD, iPad still has a very strong leading market share among all tablet products."

The iPad still lags far behind rivals in usage, including low-end tablet devices, according to data from online ad network Chitika.

Cook admitted that the iPad was indeed squeezed by the launch of large-screen iPhones and slimmer Mac products. However, Cook emphasized that the iPad has many new opportunities in the enterprise market. He said that according to a survey, 77% of enterprise buyers who plan to buy tablets in the next six months plan to buy iPad products.

This is also the intention of Apple's cooperation with IBM and dozens of other enterprise application developers to develop applications to meet the work needs of corporate users on mobile devices.

"I think it's still early days for the partnership with IBM, but I like what I've seen," Cook said. "I'm a big believer in the capabilities of the iPad and I believe it can become mainstream in the enterprise, and I hope it will continue to do so in the future."

For consumers, smartwatches could become a second display for them. It’s not easy to gauge initial consumer reaction to the Apple Watch, given Apple’s refusal to disclose any data. But if the Apple Watch and its competitors become popular, smartwatches could become a second display for consumers to check messages, emails, schedules and other quick information multiple times a day.

At the same time, the increasingly large smartphone screens may be able to realize some of the functions of tablet computers, such as social network media interaction, watching movies and TV shows, etc. By then, tablet computers may really become the office tool that Cook envisioned.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.