Circle Of Life: iPad Going The Way Of The iPod?

Apple Inc. AAPL is known for dramatic reveals. Exclusive, invite-only media events generally herald new product lines, but for the second time in known history, the company broke from tradition to announce its latest iPad model.

The updated product merited a quiet press release — the same, humble vehicle that preceded a 2014 price drop in Apple’s fourth-generation iPad.

“The way Apple announced the new iPad is evidence that they don't see this as an important part of their business going forward,” Gene Munster, managing partner of Loup Ventures, told Benzinga. “They will keep the iPad around, but it won't be a growth driver."

iPad sales have been on the decline since 2013, and the segment’s percentage of company revenue has fallen since 2012. In the fiscal first quarter of 2017, which encompassed the sales-heavy holidays, the iPad contributed a mere 7 percent of Apple’s revenue. The company’s iPhone, Mac and Services divisions surpassed the previously second-place iPad in sales.

The Tell-Tale Signs

Even the iPod, after surrendering its “golden child” status to the iPhone, earned an event-release through its final 2013 update.

Now, as the seven-year-old iPad is more visibly devalued by Apple, it seems the product, 12 models later, may similarly be relegated to the role of relic.

Apple will launch the new iPad, along with red iPhone 7 models, March 24 at a price of $329.

Taylor Cox contributed to this report.

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