Apple Inc. (NASDAQ:AAPL) is rumored to be unveiling three new iPads in the first quarter of 2017. A recent report from KGI Securities analyst Ming-Chi Kuo suggests that the tech giant will see a strong demand for the new iPads models. The analyst believes that the iPad shipments in 2017 will drop year-over-year to 35-37 million units, but the decline is expected be narrowed to 10% from the last year’s roughly 20%, thanks to new iPads, 9to5Mac reported.
New iPad Model
According to Quo, Apple will release 12.9 inch, 10-10.5 inch and 9.7 inch iPads versions in the first quarter.
“We note the 12.9 [inch] model will be the second generation of the existing 12.9 [inch] iPad Pro, the 10-10.5 [inch] model will be the high-end model equipped with a narrow bezel design, and the 9.7 [inch] model will be the low-priced option. The former two models will have an A10X chip manufactured by TSMC, while the latter comes with an A9 chip made by Samsung LSI,” according to the analyst’ report obtained by 9to5Mac.
Earlier reports suggested that the tech giant will introduce a bezel-free 10.9-inch design. The reports from different sources claimed that the 9.7-inch low-cost iPad Pro will be sold alongside the iPad Mini. The iPhone is unlikely to refresh the iPad Mini line up, which debuted in September 2015. According to analysts, the company will continue selling the iPad Mini 4.
Apple is said to release the new iPad models with True Tone display technology which allows the devices to adjust the color temperatures of their displays in real time. True Tone is currently available on the 9.7-inch iPad Pro.
Bloomberg previously reported that the new iPads would feature a faster display technology. The high refresh rate displays would significantly improve the user experience in day-to-day usage and enhance the experience in gaming applications, according to a report by the publication.
Meanwhile, analysts at Barclays Research said that the new iPads will include a bezel-free 10.9-inch version. In a previous report, KGI Securities predicted that the iPhone maker is going to bring revolutionary changes to the iPad’s design in 2018 to attract more customers as iPads sales continue to decline.
Apple iPads Sales
iPads represented about 10% of Apple Inc. (NASDAQ:AAPL)’s revenue in the last fiscal year.
Earlier, analyst Kuo cut his total 2016 shipment forecast from 45–50 million to 35–40 million mainly due to a lack of new models before the end of the year. The analyst is also expecting a decline in 2017 shipments due to general trends in the tablet market.
In his latest report, Kuo said that the 10-10.5-inch model is expected to see “more demand from commercial and enterprises and tender markets.” He noted that the low-priced 9.7-inch model is likely to “have a greater shipment contribution and likely account for 50-60% of total shipments of new iPads.”
“Worst has passed for Apple’s iPad. This is due to: (1) the YoY shipment decline will narrow in 2017F versus 2016; (2) a better ASP thanks to improved product mix on decreasing exposure to iPad mini will likely offset the shipment decline; and (3) an improved cost structure due to an increasing number of suppliers of touch-module lamination and DDI,” Kuo said in his report.