Apple shareholders who placed their bets on iPad Pro's success might have exposed themselves to risks. Information from the company's supply chain suggests that sales of the iPad line are slowing down.
In fact, the descending popularity of Apple slates is old news. In the last quarter of 2013, the iPad sold 14.1 million units and during the identical period of 2014, sales toppled to 12.3 million. For Q4 2015, Apple placed orders in its upstream supply line for a surprisingly low 2.5 million iPad Pros.
Apple made it clear that it has high hopes for the new tablet, but a thin number of orders seem to indicate a different position.
The Cupertino-based company manifests a reserved attitude toward its iPad Pro orders, voices from the iPhone producer affirmed. Rumors claim that the estimate orders for Q1 2016 could go under the 2.5 million from the Q4 2015. A decision is expected after the holiday shopping season.
Another explanation for the low production values lies in a rumored shortage of electronic panels. In this case, it might be that Apple sees a high demand for its iPad Pro, but will not be able to supply as much as requested - not quickly at least. For clients, this might be a bit unsettling, but investors keep a close eye on the production chain and some reactions from Wall Street could emerge.
As 2015 brought no new iPad Air in the game, iPad Pro sales are the best chance for Apple's slate division to reach its profit margin.
Another culprit for the unimpressive iPad Pro demand might be its hefty price tag. As most companies who use tablets tend to go for value-for-money slates, Apple's device is high above their comfort zone.
The 12.9-inch tablet has a starting price of $799, which gives buyers only 32 GB of HDD space. A better fitted 128 GB variant sells for $949, while a complete package including a Pencil ($99) and a Smart Keyboard ($169) rounds up around $1,200. A high-end iPad Pro that is equipped with cellular radios adds another $130 to that.
Take note that these prices are destined for the United States market, where the manufacturer usually has better deals.