Goldman Sachs sees iPad demand slowing

Almost two years after the iPad launch, Goldman Sachs reports that demand is slowing down, just as the holiday shopping season begins. "While improving holiday demand into late November could certainly push the momentum in the other direction, we believe it is prudent to assume the iPad is facing some near-term demand challenges," writes Bill Shope.

Shope believes price is the reason. Amazon's Kindle Fire tablet is much less expensive at US$199, for example. While many consumers are still willing to pay more for a quality product, there's no question price is a big driver in a market like this. Shope recommends that if Apple wants to keep demand for the iPad as high as it's been in the past, the company will need to get the price down. The iPhone's price dropped off sharply after introduction, but we haven't seen that same drop with the iPad.

Shope also says that increasing adoption of iCloud and Siri integration would likely drive iPad demand back up. Shope does call the iPad's growth chart "remarkable by any metric," but his analysis says Apple must act soon to kick the iPad back out into the spotlight as competing tablets threaten to take it away.

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Source: http://www.bgr.com/2011/11/15/ipad-demand-said-to-be-fading-…

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Apple iPad

Almost two years after the iPad launch, Goldman Sachs reports that demand is slowing down, just as the holiday shopping season begins....

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Rick Ludwig

Translation: "Look at me! I'm relevant!"

November 16 2011 at 5:16 PM Report abuse Permalink +1 rate up rate down Reply

RoD

With such dumb comments by this analyst, is it any wonder why demand for Goldman Sachs services and advice, is slowing down?

November 16 2011 at 2:42 PM Report abuse Permalink +2 rate up rate down Reply

El Barto

ANALyst...always making stock go up and down, then up and then down...playing with your 401K, personal funds and they still get paid and received millions in bonuses....i wonder what would happen if Occupy went rogue and started harassing some of these folks, that also played their part in the current finical crisis...

November 16 2011 at 12:38 PM Report abuse Permalink +2 rate up rate down Reply

Mr Lizard

Have any of these analysts ever actually been right about anything?

All they are trying to do here is drive down the stock price. They do this all the time when they're shorting stocks.

November 16 2011 at 11:51 AM Report abuse Permalink +1 rate up rate down Reply

boriscleto

Someone at Sachs is shorting AAPL.

November 16 2011 at 11:15 AM Report abuse Permalink +3 rate up rate down Reply

dorjesyber

BS, price isn't the reason. If that were a factor we wouldn't have had such a quick ramp up.

We are now almost 6 months removed from initial launch of the iPad 2. Given Apple's refresh history it is "savvy" of consumers to stop purchases of iOS products at this point and save their money for "new" product in 6 to 9 months. I advocated as much in a little "buyers guide" I through together for extended family, friends, and acquaintances if asked. If someone has held out this long not getting then newest iOS goodie, it's likely more worth their money to continue to wait. Especially given the "price."

There are occasional exceptions such as the iPod Touch line not getting any hardware updates this year, however that means that next year there will be some significant improvements.

6 or so months from now, when the iPad 3 launches it will be Christmas in March/April and we'll see a sudden surge in sales again. Who knows, maybe Apple will push the launch back to just before the "back to school" rush.

November 16 2011 at 10:57 AM Report abuse Permalink +1 rate up rate down Reply