Overall shipments in the quarter dropped 17% sequentially while growing 23% year-over-year for the same quarterly period. “Smaller 7-inch class tablets are finally the majority of shipments,” says senior practice director Jeff Orr. “The 7.9-inch iPad mini represented about 60% of total iPad shipments and 49% of iPad-related device revenues in the quarter.” Tablet shipments in the second quarter of 2013 achieved revenues of $12.7 billion. For the first time, iPad represented only 50% of worldwide end-user revenues. Apple split the market with all other branded vendors at $6.3 billion in the quarter.
Notably, the average selling price of the iPad dropped 17% while the average selling price of other tablets increased 17% in the past year. This is due to the introduction of the smaller and cheaper iPad mini.
“Twelve months is a long time for the peak lifecycle of a contemporary tablet. To remain a leader, Apple must continue to innovate and address real-world market needs,” adds Orr.
Apple is widely expected to release a new iPad 5 in October; however, it's unclear if the company will launch a new Retina Display iPad mini at the same time.