Apple’s new iPad is not selling like hotcakes

April 8, 2012

I’m sure that even the most hardcore Android fans will agree that Apple’s original iPad created the tablet market from scratch. Since Android manufacturers were caught slightly off guard by the success of the original iPad, it should come as no surprise that Apple has basically owned the tablet market since it first debuted its profitable darling. Fast forward to today, and you’ll find that while the third incarnation of the Apple tablet is an impressive  piece of hardware, it turns out that sales are sluggish at best, despite Apple’s announcement of a record breaking first weekend. While Apple evangelists would perhaps like to believe differently, Android will soon top iOS as the most popular tablet OS in the world.

According to a recent report from Want China Times, Foxconn employees are reporting of a sharp decline in the number of iPads assembled each day at the company’s assembly line in Shenzhen, which is likely where most of your modern technology comes from, in Southern China. In his words:

“At first we worked eight hours a day, sometimes two hours of overtime were required. We assembled 1,000 iPads within 10 hours. In February, we produced 150 to 180 iPads per hour.” “However, moving forward to March, sometimes we have not even been able to work five days a week.”

The employee went on to state that he had had 10 days off during March due to the sales decline, with three of the 20 independent assembly lines being stopped to make way for other products to be produced.

Elsewhere in the world, a similar theme is emerging too. Scalpers in Hong Kong typically used to getting a healthy 30% margin on Apple products are reporting disappointing demand, and are ‘feeling overstocked’ and are failing to make the juicy margins they have managed in the past.

Whether this should serve as a bellwether of declining demand for Apple’s new iPad remains to be seen. What is likely though is that consumers are waking up to the dizzying array of competitively priced alternatives.  Of course, we are essentially talking about three (one) devices competing with every Android tablet on the market, so it’s easy to see how Android has the upper hand. Regardless, this is unprecedented. Virtually ever device Apple has created has gone on to sell extremely well, but it looks like the tide is finally shifting. Any thoughts? Is Android on the right track, or does Apple have it right with its strategy? What tablet are you most excited about?

Comments

  • Leif81

    Android started to get much more attractive since ICS – especially for Tablets. Thanks to ICS we see more and more apps with tablet optimized UIs.

    On the other side many said that the new screen doesn’t make such a big difference for them so they will stay with the iPad 2. We shouldn’t forget that we’ve been working on “normal” resolutions since years and had been happy with those. Higher resolutions have also it’s downsides as we can see on the new iPad (weight, charging time, performance, app size) which isn’t worth the higher resolution for everyone.

    • melci

      And yet 6 months after release, ICS is still stuck at 3% Marketshare. Not a good sign.

      You are also forgetting the fact that the new iPad is far faster, thinner, lighter and with better battery life than the original iPad and no one called that model a slouch in any of those departments even compared to today’s competitors.

      • http://profiles.yahoo.com/u/6IARER67M77XYXJTBCOMQ2OCEY X-Man

        What? The original iPad can’t compete with any of the new Android tablets. The percent of ICS devices will skyrocket in the second quarter.

        • melci

          Are you saying any of today’s Android tablets are significantly thinner, lighter, more responsive and with better battery life than the original iPad? That was my point.

          • Melad360

            actually yea a lot of android tablets are thinner and lighter than the new ipad… asus transformer prime, galaxy tab and tab 2 series, the original transformer… also with the keyboard docks the transformer and transformer prime have 16-18 hours of battery life, and transformer prime on its own has like 10 or something hours. also the upcoming high end tablets like the transformer infinity and the toshiba excite series (i think) are also thinner and lighter. the toshiba excite 10 le is the thinnest tablet made at 7mm thin. i think i have proven my point

    • EddieT

      same goes for public opinion on weight of 4G/4G LTE verses 3G in overall consumer (as a whole) cost and speed (due to current coverage availability)

  • Amine Elouakil

    I think it is pretty normal that Android Tablet would overtake iPad, similar to what happened in the smartphone arena, but Apple will keep making strong sells, as it has it fan base, in addition to the general public that wants something stylish, my biggest concern for Android is W8 tablets, if Windows gets the marketing right, they have a winner on their hand!

    • paleh0rse

      especially since, thanks to BlueStacks, the x86 Windows8 tablets will also be able to play every single Android app ever created alongside the vast library of Windows-compatible titles.Put all of that power into a tablet/keyboard combo similar to the Transformer Prime, and the rest of the market will begin to look pretty silly after a very short while.

      • melci

        You are kind of forgetting that the iPad already obliterated Windows tablet PCs.

        People don’t want a desktop OS on their tablets with all that goes with that – slow performance, battery-sapping, memory hogging desktop Windows on Slow x86 CPUs that just can’t compete with the mobile optimized ARM CPUs. Not to mention the horrible experience of trying to run an OS and programs designed to be used with mouse and keyboard, not multiple-touch and accelerometers etc.

        Now if you argue that Windows 8 will also run on ARM you are of course ignoring the fact that all of a sudden your thousands of desktop windows programs won’t run on ARM so there goes your big “advantage”. I also dread to think what the performance and user experience would be of running virtualization or emulation of Android apps in such a resource-constrained environment.

        • paleh0rse

          You’ve obviously not tried Windows 8, and I think you’ll be surprised by the mobile performance of the upcoming x86-based tablets…

          • melci

            Have you actually tried these up-coming x86 tablets yourself?

            Can you definitively say that running legacy desktop apps designed for fast desktops with stacks of RAM, HDD, powerful GPUs, fast multi-core fan-cooled CPUs and acres of screen real estate won’t struggle mightily in this brave new world of minimum RAM, much slower low-power consumption mobile processors and far slimmer and more constrained form factors than any slim and light laptop ever achieved.

            Don’t you remember all of intel’s promises regarding how fast and low power their previous generations of Atom processors supposedly were and what a farce that turned out to be with Netbooks barely able to run the OS let alone any significant apps. And the amounts of heat and poor battery life in comparison to the sleek svelte ARM architecture.

            And you reckon Microsoft and Intel are going to finally deliver on their endless promises? You have more faith than I.

    • melci

      Not necessarily.

      If Apple adds more iPad models to fill in the gap between the $199 iPod touch and the $399 iPad 2 Apple has an excellent chance of emulating the iPod’s dominance of the media player and mini-tablet markets which after more than a decade still has a good 78% market share.

      • http://profiles.yahoo.com/u/6IARER67M77XYXJTBCOMQ2OCEY X-Man

        Apple would only eat into their own higher priced tablets as a 7″ tablet for $249 would work just as well for 95% of the things you do unless Apple cripples the device substantially but that has it’s own issues too.

        • melci

          Except that 10″ tablets still sell far better then 7″.

          Full page A4 word processing, reading magazines and comics and web pages without having to zoom in and out to each block of text, typing onscreen with a decent size keyboard overlay without using up mot of your screen are all just a few examples of why most people find a 10″ tablet works better than a 7″ which is only 47% the area of the 9.7″ iPad.

          Even if it did, Apple is never shy about cannibalizing its own products. They have stated many times they would rather they did so rather than their competitors.

  • Darktanone

    Apple produced enough iPads this time around to meet world wide demand. This put a big dent in scalper’s profits. There were lines of people returning iPads at the Grand Central store because they couldn’t sell them at inflated prices to buyers in China and Chinese authorities imposed additional tariffs for imported iPads. So this killed that business. FoxCon recently reported that, because of the Fair Labor Association findings, they cut back hours and hired additional workers to assemble iPads and other electronics. Recently Brazil was given the green light to start building iPads. When you consider these factors, your article has holes. 

    Apple reported sales figures of 3 million for The New iPad over the first three days that didn’t include iPad 2. Currently, there are two iPads available (iPad 2 and The New iPad) covering two price points ($399 and $499). This is BIG! It means Android tablets can’t compete at these price points and will have to come in cheaper which has thus far proven very difficult. We know anything over $499 is DOA because iPads control the premium market. Apple is squeezing the competition out of the market. Next year’s iPad line up will probably look like this: iPad 2 $299, The New iPad $399 and the latest iPad $499.  Just for kicks, throw in the original iPad for $99. I don’t see Android tablets winning this race. It’s pretty much over for them after next year. This year, I see the iPad increasing market share significantly by taking back share from Android tablets. The disappointing 2000 pre orders for the ASUS Transformer, if true, is one indication that Android is not going to be as competitive in this space. 

    • http://profiles.yahoo.com/u/6IARER67M77XYXJTBCOMQ2OCEY X-Man

      Are you living in bizzaro world? The Transformer Prime is constantly sold out. The problem is that Asus can’t make them fast enough. They don’t have the manufacturing capacity that Apple has. The TP at $499 is a better deal.

      • melci

        Except for non-functioning GPS receiver on the first version, a screen with 60% lower resolution, no 4G and a Tegra 3 GPU with far lower GL fps benchmarks than the new iPad.

        • Melad360

          you dont even need retina display on tablets, youre not shoving it in your face to notice or care about visible pixels. if you can read “ipad” in the top left corner of the status bar in your ipad 1 or 2, you dont need retina display. also about processor, its a tegra 3 CPU, the GPU is the GeForce. the tegra 3 cpu is better than the dual core 1ghz cpu on the new ipad

          • melci

            According to Annandtech, the Transformer Prime’s NVidia Tegra 3 only managed 68fps to the iPad’s A5X which blasted 140fps in the GL Benchmark Offscreen 720P render test.

            According to Laptop Mag, the iPad gave 60fps on the GLBenchmark Egypt Standard test to the Transformer’s 53fps. The Geometric Test (low level shader performance) gave 57fps vs 27fps.

          • Someone

            Which one does Flash again?

          • melci

            Who cares which one does Falsh again? Adobe certainly doesn’t.

          • Melad360

            people who like to have a full browsing experience…?

          • Melad360

            I said CPU, not gpu… What you’re saying is a gpu comparison, not a CPU. CPU does regular tasks, gpu does graphics, hence the ‘g’pu

          • melci

            Are not aware the Tegra 3 is a System on a Chip (SOC) containing both the CPU and the GPU integrated into the chip?

            Read my original comment – I have been talking all along about the GPU part having much lower performance than the new iPad. That after all is what has the most affect on performance of games which make up the largest proportion of apps used on tablets.

          • Melad360

            ya im aware. but the gpu is still the GeForce not the tegra 3. tegra 3 does tasks faster than the new ipad in terms of regular computing tasks, but for graphics its not as fast as the new ipad, however there are some additional graphics layers on some games that arent even present on the new ipad. those games are tegra zone games and optimized for the GeForce gpu.

          • melci

            So you agree with all the benchmarks mentioned above that have demonstrated that the new iPad is indeed significantly faster on graphically intensive titles than the Transformer. That is all I was saying. You need to stop getting off the subject.

            But, since I’m a sucker for irrelevant diversions, the Tegra 3 is the name of the entire SoC chip including the GPU portion of the package. There is no separate GeForce part so the benchmark sites above are entirely correct to talk about the Tegra 3 when referring to the GPU capabilities. Heck even Nvidia calls their site the “Tegra zone” not “GeForce Zone”. However, feel free to go complain to AnandTech, Laptop Mag, Spaceport and NVidia.

          • Lolcyick

            Oh another Apple fanboy huh? Man, this is way to fun to watch.

          • Melad360

            ya sure, i agree with the benchmarks comparing GPU performance. in the browser mark test, which is more reliant on the CPU, the transformer scores higher than the ipad.

            once again, the tegra 3 soc contains a CPU, and GPU… the GPU is the ULP GeForce. that is what i have been trying to say all along. from nvidias website itself: “Console-quality gaming with an integrated ultra-low power (ULP) NVIDIA GeForce® GPU”… also, the reason nvidia calls it “tegra zone” and not “geforce zone” is simply because everyone knows about the tegra processors, and how its on many phones. they dont call it “geforce zone” because not everyone knows about how the gpu is geforce (as we clearly see here), and if someone has a device with a tegra processor and dont know about its GPU, they wont be interested. but knowing its a tegra processor, thats when they will go to tegra zone.

    • Stan Kossen

      Darktanone: You brought out some valid points in your response. However, you are going to confuse the author of this biased article by supplying him with facts. His partiality toward Android is quite evident to me.
      Of course, one day Apple will decline. Who knows when? Maybe within two years. Maybe much longer, but it is still doing quite well, thank you.
      Stan Kossen

  • GPM

    Let’s not forget about the market penetration by Amazon with the Kindle Fire. These are likely to be a high percentage of the android tablets. In fact, I had a vizio tablet for a while and just recently bought an ipad3 – for $700 I’m not impressed and annoyed with the limitations of porr video codec support, having to use itunes for everything (what – I can’t just plug it in and use like a usb disk?), and the fact that it is not true multitasking (which is likely fine for most people but I was hoping to use this to create ssh tunnels to do remote control, somehting I can do on the cheap vizio and my free after rebate android phone) – I am going to return my ipad and try out the kindle fire, rooted, of course. I just wish the memory was expandable via micro sd card!

    • Newman

      Grab the new 7″ samsung galaxy tab it has all that you seem to need with a 249 dollar price tag.

  • Meill

    And yet the iPad still captures between 80-97% web browser share. In the case of the several university websites that I manage, the iPad has captured 95% of our tablet web browser traffic here in Australia. And no, your average user is not going to be changing browser UIDs so that is no excuse.

    Likewise, ICS still oly accounts for 3% of Android device numbers – where are all these tablets? They are obviously not new high-end Andriid tablets, but rather cheap and nasty e-readers like the Kindle Fire running ancient Android OS versions and in many cases not playing in Google’s ecosystem at all but forking to become separate platforms without access to all the new API goodness of modern Android.

    In addition, we have the disgraceful lack of tablet-optimized Android apps versus the iPad’s overwhelming 200,000 apps. Time and again we read of the very poor user experience of phone appsmscaled for larger screens and the dearth of the vast majority of high quality games that grace iOS.

    Then there is the continuing income disparity between the platforms that sees developers continuing to flock to iOS leaving the scaps for Android. Don’t even get me started on the huge range of options and choices in third party hardware peripherals, accessories, cases, media and content available for the iPad versus the veritable desert landscape facing Android users.

    These facts highlights the flaws in NPD’s numbers, that of shipping versus sold tablets and the fact that a significant portion of Android talents are not helping to push Android forward at all, but rather allow iOS to go on dividing and conquering. The continuing lack of software, 3rd party hardware and content demonstrate that even if Android tablet sales do manage to match or beat the iPad, it will be a hollow victory indeed.

  • Meill

    And yet the iPad still captures between 80-97% web browser share. In the case of the several university websites that I manage, the iPad has captured 95% of our tablet web browser traffic here in Australia. And no, your average user is not going to be changing browser UIDs so that is no excuse.

    Likewise, ICS still oly accounts for 3% of Android device numbers – where are all these tablets? They are obviously not new high-end Andriid tablets, but rather cheap and nasty e-readers like the Kindle Fire running ancient Android OS versions and in many cases not playing in Google’s ecosystem at all but forking to become separate platforms without access to all the new API goodness of modern Android.

    In addition, we have the disgraceful lack of tablet-optimized Android apps versus the iPad’s overwhelming 200,000 apps. Time and again we read of the very poor user experience of phone appsmscaled for larger screens and the dearth of the vast majority of high quality games that grace iOS.

    Then there is the continuing income disparity between the platforms that sees developers continuing to flock to iOS leaving the scaps for Android. Don’t even get me started on the huge range of options and choices in third party hardware peripherals, accessories, cases, media and content available for the iPad versus the veritable desert landscape facing Android users.

    These facts highlights the flaws in NPD’s numbers, that of shipping versus sold tablets and the fact that a significant portion of Android talents are not helping to push Android forward at all, but rather allow iOS to go on dividing and conquering. The continuing lack of software, 3rd party hardware and content demonstrate that even if Android tablet sales do manage to match or beat the iPad, it will be a hollow victory indeed.

    • http://profiles.yahoo.com/u/6IARER67M77XYXJTBCOMQ2OCEY X-Man

      No matter how you want to spin it, Apple’s tablet market share continues to decline and it will get even worse in 2012. Android 4, ICS, will be a game changer this year. By the 3rd quarter 50%+ will be running ICS and make iOS look even more dated.

      • melci

        Don’t worry we’ll only have to wait a few more days for Apple to announce their Q1 iPads sales and we will see what POV is actually correct.

        ICS is still only running on 3% after 6 months, What makes you think another 6 months will make any difference?

    • Melad360

      lol youre such an isheep fanboy, what are you even doing on a website with android in its name? are apple websites boring you? showing you the same 5 products with almost no difference in the next model? get outta here

      • melci

        So you’d rather sling insults than engage in a fun robust discussion?

        • Melad360

          Considering meill doesn’t know what he’s saying, pretty much. Saying how robust iPads third party cases and stuff are, and how android has nothing pretty much gave it away. iPad is a single device that runs ios. Android runs on many tablets so obviously you won’t find hundreds of different cases for one android tablet, except for maybe the really popular ones like the galaxy s2 (ya I know that’s not a tablet I’m just giving an example)

          • melci

            So you agree with meill’s point that there are vastly more accessories, cases, third party hardware peripherals like docks, hifi systems, Steering wheel car automation, dock-equipped clock radios, home automation Docks, audio mixers and DJ consoles etc for iOS devices because they all have a standard dock connector, set form factors and physical shapes.

            So why are you insulting him again?

          • Melad360

            that wasnt the point. i was simply replying to an answer that has an obvious reason. and calling someone a fanboy isnt insulting

          • melci

            You are calling him an “isheep fanboy” who doesn’t know anything (sounds like insults to me) and yet you are agreeing with him that iOS devices do need have far more accessories and hardware peripherals than Android phones and tablets.

            I don’t understand your point?

          • Melad360

            i never said “who doesnt know anything”. he could be a NASA engineer for all i know. i simply said that he doesnt know what hes saying (as a misunderstanding to “ICS still oly accounts for 3% of Android device numbers – where are all these tablets? They are obviously not new high-end Andriid tablets, but rather cheap and basic e-readers like the Kindle Fire running ancient Android OS…”). but saying that android has a “veritable desert landscape” is such a fanboyish thing to say. look at any popular android phone, and i will guarantee you will a plethora of accessories for it. and my point all along was hes a fanboy, as clearly stated in my first post

  • Meill

    Note that last quarter’s sales figures represent the sales dip in iPads always experienced just before the launch of the new model the following quarter.

    It also represented the launch quarter for the Kindle Fire and the usual sales surge in CE per-Christmas. Android tablets also included every e-reader and mini-tablet right down to 5″ or even smaller. Of course analysts always miss out the iPod touch (which as everyone always says is just a small iPad) which if included, would have Increased the 15.4 million iPads sold by another 8 million.

    Despite all of this, after 2 years, all Android devices put together still failed to beat the iPad.

    Guess what really is going to happen to iPad sales numbers in Q1 2012, the quarter that the new iPad launched (with an astounding 3 million sold in one weekend – equivalent to what the Kindle Fire managed the whole of last quarter)?

    It certainly isn’t what you are predicting.

    • http://profiles.yahoo.com/u/6IARER67M77XYXJTBCOMQ2OCEY X-Man

      That first weekend were mostly previous iDevice users. Something like 36% of new iPad buyers already had a previous iPad and about 70% of those first weekend buyers already had at least one iDevice. So the 3 million number isn’t surprising when an overwhelming buyers are already Apple inductees.

      The 2nd quarter sales numbers will be more telling of it’s true popularity especially after all these issues coming out now.

      • melci

        50% of the households in the USA have an Apple device and with an installed base of 350 million iOS devices around the world compared to 300 million Android devices, of course a large number of new iPad buyers are going to be existing Apple owners. This just demonstrates the amazingly high satisfaction levels of Apple devices, something that Android manufacturers can only dream of.

        Apple’s iPad sales have always increased each and every quarter except for the quarter before the release of a new model. Your prediction is the one going against historical evidence.

    • Stan Kossen

      Good points, Meill. I believe that the author of the article and some of the responders have read and applied the old book, “How to Lie With Statistics,” by Huff.

      Stan Kossen

  • Guest

    Why does AndroidAuthority have to *TOTAL* up 10 manufactures in order to compare the sales totals to one: Apple’s iPad.

    Why not compare *ONLY* HTC to Apple in tablet sales?
    Why not compare *ONLY* Amazon to Apple?
    Why not compare *ONLY* AsusTek to Apple?
    Why not compare *ONLY* Samsung to Apple?

    AndroidAuthority’s article is like saying “See, we compared Ford car sales to all the other *TOTAL* cars in the world. See how bad Ford it!”

    • PINGAS!

      Apple’s iOS is on *ONE* tablet device: the iPad.

      Android is on *SEVERAL* devices, not solely one tablet made by one company.

      They’re comparing Apple iPad’s share to the share of *ANDROID TABLETS*, which cannot be restricted to a single company because Android is on so many devices.

      Also, Ford’s competition DO NOT all use the same non-Ford engine inside different vehicle designs. You’re trying to debase a comparison of market shares of tablets running *TWO* distinct operating systems by making a wiseass argument that Ford can be compared to an entire market of DIFFERENT vehicles all using THEIR OWN engines. If every auto manufacturer except Ford used *THE SAME BRAND OF ENGINE* under the hood, THEN that comparison might be apt. But they do not, therefore that analogy is irrelevant.

    • http://profiles.yahoo.com/u/6IARER67M77XYXJTBCOMQ2OCEY X-Man

      That’s Apple’s issue not Google’s via Android. Maybe Apple should give their OS for free so other companies can make iOS tablets.No? I didn’t think so. The comparison is fair. It’s Android vs iOS.

  • http://profile.yahoo.com/RQPRMGVLY43XZBXHDQ37NH5UDM Jessika

    All are interested in iphones…

  • AvoidDroid

    The BS Meter just maxed out.

  • StonePeterson

    I am very happy with the Toshiba Thrive.

  • Bspage

    Ha ha. Another fabricated Android article. See J.P. Morgan update below.

    “J.P. Morgan analyst Mark Moskowitz has made “significant increases” to both his iPhone and iPad sales projections for the first quarter of 2012, raising his price target on Apple stock from $625 to $715″
    “He projects iPad shipments to reach 13.8 million in the first quarter, up from his earlier estimate of 10.1 million units, and his full-year shipment estimate was raised to 69.6 million tablets, up from 59.8 million.”

  • melci

    Chitika reports the new iPad has gone from 6.6% of all iPad traffic in the USA to 10% over the last 2 weeks.

    Considering there have been 65 million iPads sold to date, that means that in 24 days the new iPad has probably sold up to 6.5 million devices. Considering there were 3 million new iPads sold in the first weekend and the new iPad almost doubled viewings from a point a week after that weekend, I think we can say this is as close to confirmed as you could ask for.

    Considering last quarter (Christmas quarter) the iPad sold 15.4 million over 3 months, it sounds like the new iPad is indeed selling like hot cakes after all.

  • Jon

    Are we talking about the pitiful Asus Transformer Prime that only sold 2,000 units?

    This Transformer Prime sales number was released a week before this article was even written. Don’t be so blatant.

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