Will Apple See iPad Sales Fall Again in 1Q16?

Why Apple Cut Its Transaction Fee for Apple Pay in China

iPad shipments expected to fall 20%

According to DigiTimes Research, the downtrend in Apple’s (AAPL) iPad sales is expected to continue in the quarter ending this month. The research firm projects Apple to ship 9.8 million iPads during the quarter, indicating a 20% YoY (year-over-year) decline. However, Apple will continue to lead the tablet market with a market share of 21%, followed by Korea’s (EWY) Samsung Electronics (SSNLF) with 14%.

The research report states that the largest share of shipments will be for 7-inch tablets, whereas the 7.9-inch tablets such as the iPad mini will account for 14% of shipments. Tablets with displays above 11 inches including the iPad Pro will constitute 11% of shipments.

KGI Securities expects iPad shipments to reach 40 million–42 million in 2016

According to analyst Ming-Chi Kuo of KGI Securities, Apple will ship between 40 million and 42 million iPads in 2016, representing a 16% decline YoY. However, the analyst expects revenues to remain strong due to an increase in average selling prices from the iPad Pro.

According to research firm IDC, worldwide tablet shipments fell 13.7% YoY in 4Q15 to 65.9 million units. Shipments fell 10.1% YoY in 2015 to 230.1 million units. Apple’s (AAPL) shipments for 4Q15 stood at 16.1 million units, compared to 21.4 million units in 4Q14.

The other top players in the tablet segment at the end of 4Q15 included Samsung Electronics (SSNLF), Amazon (AMZN), China’s (FXI) Lenovo (LNVGY), and Huawei with market shares of 13.7%, 7.9%, 4.8%, and 3.4%, respectively.

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