Apple introduced new models of its iPad at an event on Tuesday and promised renewed devices at affordable prices.
“This is the iPad’s biggest day since its launch,” said CEO Tim Cook.
Analysts told ABC News that the announcement exemplifies Apple’s current strategy: Rely on new models of signature items rather than rushing to the next big product.
While the world’s second-largest company risks dependence on long-standing products in a competitive industry in terms of market value, analysts say this approach allows Apple to leverage its loyal customer base and popular devices while developing new products such as the Apple Vision Pro. the company’s mixed reality headset.
But with a starting cost of $3,499 and a more powerful version around $4,000, Apple Vision Pro is far from an affordable price point for a wide audience, says Ben Bajarin, an analyst at research firm Creative Strategies. Moreover, Apple has remained largely silent in the industry-wide race for AI technologies and products.
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“We still don’t know what’s going to happen next,” Bajarin said. “That’s the tough thing for everybody,” he added, “There’s still no company on the planet at that level of consumer hardware scale.”
Apple did not immediately respond to ABC News’ request for comment.
In its latest earnings report last week, Apple revealed a decline in sales of some of its core products. Smartphone sales fell 10% in the three months ending March compared with the same period a year ago. iPad sales fell 17% during the period, according to the earnings report.
Overall, Apple sales fell 4% in the three months ending in March compared to the same period last year.
Speaking on a conference call last week, Cook attributed the sales decline to a difficult comparison with the year-ago quarter (when the easing of COVID-related supply bottlenecks triggered a sales boom). Absent this one-time increase, sales will increase starting in 2024, Cook said.
The earnings report set the stage for Apple’s event on Tuesday; At this event, the company launched new models of its iPad in order to increase sales.
Apple showcased the redesigned 11-inch iPad Air and the newly released 13-inch iPad Air, each equipped with the M2 Chip. The price of the 11-inch iPad Air starts at $599, while the price of the 13-inch model starts at $799.
The company also launched new models of its premium iPad Pro, describing it as the “thinnest Apple product ever” in an online statement. The 11-inch iPad Pro starts at $999, while the 13-inch iPad Pro starts at $1,299.
Customers can now order the new products online and find them in store next week, the company said.
Many analysts are looking forward to next month’s Worldwide Developers Conference, where Apple is expected to make a “major AI announcement,” Dan Ives, managing director of equity research at investment firm Wedbush, said in a note to investors. via ABC News.
Ives said the company may announce plans to include artificial intelligence in its next iPhone models, which could potentially increase sales of the product.
Ives also noted that possible AI updates combined with new iPad models could mean “a broader Apple hardware-focused upgrade cycle over the next year.”
“We believe the seeds of transformation in Apple’s growth have been planted by Cook & Co.,” Ives added.
However, Bajarin said that the strategy of improving pre-existing products instead of introducing new ones leaves Apple’s long-term vision a bit unclear, and acknowledged that Apple Vision Pro, which can only be purchased in the USA in February, is still in its early stages. development stages. He also acknowledged that the high price of the buzzy product will eventually come down.
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“We’ve had an idea of what’s coming next, but everyone realizes it’s not anytime soon,” Bajarin said. “It will take many years to make this concrete.”
Meanwhile, Bajarin said Apple will likely leverage its large customer base and potential AI-focused product upgrades to stabilize sales.
“I’m not worried at all,” Bajarin said. “They’re not losing customers to someone else. People keep their stuff longer because it’s good enough.”
Where is Apple headed after its latest product event? Experts are addressing the issue. Originally appeared on abcnews.go.com