Credit: Coming off a fiscal 2013 in which iPad revenue grew a mere six percent, Apple has seen year-over-year declines in iPad shipments in its two most recently reported quarters. This slowed growth is clearly to some degree the result of the tablet market's lack of carrier subsidies that help lower the upfront cost to consumers as is the case in many smartphone markets across the world, a dynamic which in theory hampers overall adoption and how routinely consumers upgrade their tablets.Without question, the single largest storyline driving opinions, and share prices for that matter, of Apple this year is the iPhone 6.
Source: Apple SEC filings; * reflects removal of accessory revenue from iPad revenue in 2012 and 2013
Perhaps the most pernicious threat to the success of Apple's tablet business comes from within. By tapping into the global "phablet" craze with its recently launched 5.5 inch iPhone 6 Plus, Apple has in all likelihood created a meaningful disincentive for consumers to pay for an additional second device, especially in the case of the smaller iPad Mini.
What it means for Apple
Overall, market researchers expect the global tablet market to expand at only 6.5% now in CY 2014, so this slowing growth isn't a frustration unique to only Apple. However, with Apple's iPhone lineup increasingly encroaching the use-case of its iPads, I'm becoming less and less optimistic for the iPad's prospects in the years ahead. Apple is famous for its willingness to cannibalize itself, a trait I maintain largely does more harm than good. However, as we head into Apple's second major product launch of the year, this could precipitate more pain for Apple's iPad business barring any major surprises from Apple.
Apple Watch revealed: The real winner is inside
Apple recently revealed the product of its secret-development "dream team" -- Apple Watch. The secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see where the real money is to be made, just click here !
The article Apple iPad Event Announced -- Here's Why it Matters originally appeared on Fool.com.
Andrew Tonner owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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