Apple launched the new iPad mini (6th generation) and iPad (9th generation) in September 2021 to give consumers a more attractive iPad lineup. Recently, Apple published its Q1, 2022 earnings report with a new all-time high revenue record of $124 billion with 11% Y-o-Y growth across products and services. the tablet product category did not perform well during the last Holiday quarter.
Although the company saw a 14% decline in iPad’s sales in the Q1, 2022 (October – December 2021) quarter, iPad models were popular amongst students and creators and tablets’ sales recorded a high number of new customers.
iPad lineup was impacted by supply constraints during the Holiday quarter
Previously, it was reported that Apple sustained iPhone 13’s supply by reducing iPad’s production by 50% to utilize common parts in smartphones production due to the global chip crisis. Those production hurdles resulted in a decline in tablets’ sales. At the earnings conference of Q1, 2022, CFO Luca Maestri said was a popular choice amongst new customers.
iPad generated 7.2 billion in revenue, down 14% year over year due to very significant supply constraints, but customer demand was very strong across all models. Despite the supply shortages, our installed base of iPads reached a new all time high during the quarter, thanks to a high number of customers that are new to iPad. In fact, around half of the customers purchasing an iPad during the quarter were new to the product.
Despite the constraints I mentioned earlier, our iPad lineup continues to be indispensable to tens of millions of people, from teachers and students to artists and creators. Customers are eager to get their hands on our 9th generation iPad which features a beautiful display and double the storage capacity as well as the new iPad mini with its ultra portable design.
Having said that, the company expects its supply constraints to ease by March and it will likely have better performance in Q2, 2022.