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Apple’s iPad Shipments Continued to Fall in Fiscal 2Q16

Why Apple's Stock Fell following Its Fiscal 2Q16 Results

(Continued from Prior Part)

iPad shipments fell 19% YoY in fiscal 2Q16

In fiscal 2Q16, Apple (AAPL) shipped approximately 10.3 million iPad units and generated revenue of $4.4 billion. In comparison, it shipped 12.6 million units in fiscal 2Q15 and generated revenue of $5.4 billion. Revenue and shipments fell 19% YoY (year-over-year) in fiscal 2Q16.

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. This amounts to a 16% fall YoY. However, analysts expect revenue to remain strong due to a rise in the average selling price of the iPad Pro.

Last month, Apple expanded its iPad Pro portfolio. It announced the launch of a 9.7-inch model with an A9X SoC (system-on-chip), Apple Pencil, and Smart Keyboard Support, among other features. The unit will be priced at $599. To ensure continuous product movement, Apple slashed the price of the iPad Air 2 by $100 to $399.

Worldwide tablet shipments expected to fall 5.9% YoY in 2016

The International Data Corporation (or IDC) predicts that worldwide tablet shipments will fall 5.9% YoY to 195 million units in 2016. However, the demand for detachable devices is expected to rise in the next few years. Hybrid tablets are expected to rise from 16.6 million units in 2015 to 63.8 million units in 2020.

According to IDC, Android devices (GOOG) (GOOGL) will have an 18.2% share of the detachable market in 2016, while iOS will have a 28.5% share. Windows (MSFT) is expected to lead the market with a share of 53.3% in 2016.

Apple accounts for 15.6% of the Technology Select Sector SPDR ETF (XLK).

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