Apple iPad revenue fell 10.4% to $6.2 billion in the September quarter, as per the latest update from Apple. It is the second straight quarterly decline, after a 5.9% drop in the June quarter, and it left iPad down 0.3% for the full fiscal year.
iPad was one of two categories that shrank in Apple’s fourth-quarter results, alongside Wearables, Home and Accessories. The OLED iPad mini goes on sale on November 6, so it adds nothing until the December quarter.
Apple iPad revenue fell about 8% over the last two quarters
The first half of the fiscal year was strong, and the decline came in the second half.
- First half: $15.5 billion, up about 7.0%
- June quarter: $6.2 billion, down 5.9%
- September quarter: $6.2 billion, down 10.4%
- Full year: $27.9 billion, down 0.3%
The June and September quarters together brought in $12.4 billion, down from $13.5 billion a year earlier. In the September quarter iPad brought in $0.7 billion less than the $7.0 billion of a year earlier, and it made up 5.4% of Apple’s revenue, the smallest share of any of its five product and service lines.
Apple blamed supply constraints and a tough comparison for the iPad decline
CFO Kevan Parekh said iPad revenue fell because of supply constraints and a continued difficult comparison with the launch of the A16 iPad a year earlier. Apple raised iPad prices on June 25 by $100 to $200, taking the iPad from $349 to $449 and the 11-inch iPad Pro from $999 to $1,199. The June quarter ended two days later, so the September quarter was the first to run entirely at the new prices. Mac revenue rose 23.7% in the same quarter, while Wearables, Home and Accessories fell 7.9%.
The tablet Apple sells at the low end is the 11-inch iPad with an A16 chip, the only model in the lineup without Apple Intelligence support. Amazon’s new Alexa Tablets add competition at that price. Parekh said the iPad installed base reached an all-time high in the quarter and that more than half of iPad buyers were new to the product.
The iPad lineup gets a new tablet on November 6 and three more in 2027
The OLED iPad mini costs $699, has an 8.5-inch OLED display and uses an A20 Pro chip. Pre-orders opened on October 28, and it reaches buyers on November 6, so its first sales fall in the December quarter.
Bloomberg’s Mark Gurman reports that Apple plans three iPad updates for 2027, a new entry-level iPad, an OLED iPad Air and a faster iPad Pro, all in the first half of the year. The iPad Air sold today uses an M4 chip and the iPad Pro an M5 chip. Gurman does not expect major iPad changes in the second half of the year.
