Apple’s Mac and iPad businesses have witnessed a steady decline over successive quarters, with the previous Q3 2023 one showing little to no signs of recovery. According to an investment firm analyst, the overall financial state of the company’s tablet business is said to remain unchanged, with the iPad’s quarterly revenue estimated to decline by 23 percent compared to the same period a year ago.
Apple’s iPad business will reportedly only generate $7.2 billion in the fourth quarter of 2023
The estimates were shared by Erik Woodring, an analyst at Morgan Stanley. MacRumors, which spotted the figures, reports that Apple’s iPad business generated $9.4 billion in the same quarter a year ago, with the upcoming one said to make just $7.2 billion. The technology giant is rumored to introduce several iPad refreshes this week, with the iPad Air possibly getting treated to the M2, along with the iPad mini 7 getting some improvements, and the entry-level iPad receiving an update.
Unfortunately, these releases may not help matters, and that might be related to the overall reduction in consumer demand. Woodring has not commented on Apple unveiling new iPad models this week, and neither does he mention if 2024 is estimated to bring about any positive outlook. However, TF International Securities analyst Ming-Chi Kuo believes that both Mac and iPad demand is said to decline next year, as Apple has reportedly cut orders for the M3.
The situation appears to be out of the company’s hands, as in a period of inflation, consumers prioritize their monthly expenses rather than spending massive amounts on pricey electronics such as the iPad. Even if the future appears bleak for Apple’s hardware division, it has its ‘Services’ arm to help offset any further losses, as in the company’s previous earnings call, this segment was the only one that generated more revenue compared to the same period a year ago.