Apple's iPad Sales To Get A 'Nice Boost' This Year, But Expect A Decline In 2025, Says Gene Munster
Portfolio Pulse from Ananya Gairola
Gene Munster of Deepwater Asset Management predicts a significant increase in Apple Inc.'s iPad sales in 2023, driven by updates to three of the four iPad models. These updates include a thinner design, larger screens, faster chips, and increased memory, expected to boost iPad's sales share from 7% to 8% within a year. However, Munster anticipates a decline in iPad sales by about 2% in 2025 due to longer upgrade cycles and the modest nature of updates. Additionally, the iPad Pro's price increase could add $1.3 billion to Apple's sales, enhancing its growth by 0.2%. Munster also highlighted Apple's competitive advantage in AI with the early announcement of the M4 chip.
May 08, 2024 | 8:18 am
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Apple Inc. is expected to see a short-term increase in iPad sales in 2023 due to significant product updates, potentially boosting its stock. However, a projected decline in sales by 2025 and the strategic introduction of the M4 chip for AI competitiveness could influence investor sentiment.
The immediate sales increase from the iPad updates and the strategic positioning with the M4 chip suggest a positive short-term impact on Apple's stock. However, the anticipated sales decline in 2025 introduces uncertainty, making the overall short-term impact positive but with caution for future prospects.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100