Apple Inc. (NASDAQ:AAPL) is getting ready to take up yet another challenge, as the U.S. tech giant begins trying to market a new product.
The company will have to overcome serious issues in trying to promote its larger and faster iPad Pro. Among the major complaints coming out of businesses is that they are hesitant to change software vendors and take up a high-priced new device that doesn’t even come with specialized business apps. (Source: Reuters, last accessed September 16, 2015.)
Apple stock has been floundering as of late, and bold new initiatives are necessary. The new iPad may be a difficult sell for Apple, but it’s certainly a solid strategy for Apple to pursue when one considers its slumping global tablet sales. Apple reported slowing sales of its iPad in the two previous quarters, and a serious revitalization is in order. (Source: Forbes, last accessed September 16, 2015.)
Analysts are projecting that sales of the iPad Pro could make up as much as 20% of the broader tablet market by 2018, in comparison with 14% in 2015. (Source: Forrester Research, last accessed September 16, 2015.) The overall market is set to grow by nearly 15%, from 218 million to 250 million units.
The unit price is another major hurdle which Apple must overcome if it hopes to gain market share. The new iPad pro starts at a lofty $799.00, and easily moving into $1,000.00+ territory if one wishes to buy both the keyboard and stylus package. (Source: Apple Insider, last accessed September 16, 2015.)
This moves the device well above Apple’s other tablet offerings, as well as similar devices by competitors such as Lenovo and Microsoft Corp. Apple’s own MacBook Air can be had for a similar price.
Expanding market share through aggressive sales will be tricky, as the great majority of businesses utilize custom-made software applications and databases which are as of yet incompatible with the Apple operating system (iOS). (Source: Reuters, last accessed September 16, 2015.) The proposed incentive for switching to Apple devices remains vague, given these difficulties and the unit price.