The good news continues for Apple Inc.’s (AAPL) iPad Pro.
Deutsche Bank’s weekly markets research missive quotes Digitimes Research that shows a steady demand for the device will translate to expected sales of 9.5 million units for the company. That is a 4% drop in sales versus an expected 10% overall drop in sales for the tablet industry as a whole. “We note that iPad sales grew for the first time in 10 quarters during the second quarter helped by enterprise demand for the new iPad Pro, which we expect to continue to drive sales for C3Q-16,” the firm’s analysts write. (For related reading, see: Q2 Highlights Diverse Opinions on Apple.)
The lower-than-expected decline in Apple’s sales is offset by a “conservative outlook” for other brands, according to Digitimes. “Samsung Electronics will see its shipment momentum fade during the peak season as its new entry-level and mid-range models will face increasing competition from China brands,” the research states. Amazon.com Inc. (AMZN), which doubled tablet sales during the first quarter, will also witness a decline in product sales this quarter due to “product shifts,” according to Digitimes. (For more, see also: Apple Beat Q3 But Here's Two Things You Likely Missed.)
Apple is expected to launch an upgrade to the iPad Pro next year. Ming-Cho Kuo, an Apple analyst, said that the Cupertino company will launch three next-generation models next year. Among the expected changes are a change in screen size to 10.5 inches from 9.7 inches. The size change is intended to make it a better fit for the commercial and education markets. In addition, the device is expected to feature a brand new Apple-designed “A10X” processor. But those changes will not be enough to stem a sales decline, according to Kuo. Instead he expects the device’s 2018 edition, featuring a flexible AMOLED panel, to enable a complete refresh of its user interface and make a difference to its bottom line.