Apple's back-to-school promotion for 2016 will also include the iPhone and iPad Pro as the tech giant deals with a declining smartphone and tablet market, based on the report of an industry analyst on July 6, Wednesday. Apple launched its yearly back to school sales campaign last month with discounts on Beats headphones, most Mac computers, iPhone 6 and 6s series smartphones, and all iPad Pro tablets.
It was interesting that Apple included its latest iPhone series and iPad Pro. Last year the smartphones and tablets were not included in the back-to-school promo.
Carolina Milanesi is an analyst for Creative Strategies. She explained that in June 2015 iPhone sales were quite high and Apple found it unfathomable that iPad sales would not bounce back after dropping for five quarters, according to Computerworld.
A year has passed. Milanesi noted in an interview that the tech company is now realizing that the iPad sales will not start increasing due to tablet owners upgrading their Apple devices.
The reason is that the life-cycle of tablets is different than the one for smartphones. Sometimes iPad owners wait a long time to upgrade their tablet computer, and other times they never take that action.
iPhone sales have also recently dropped. In the first quarter of this year Apple sold 51.2 million iPhones, which was a 16 percent year-over-year drop, while iPhone revenue decreased 18 percent ($7.4 billion) during the same period in 2015.
This situation explains why Apple added the iPhone and iPad Pro to its back-to-school promotion.
Apple customers who buy certain iPhone models or iPad Pro through September 2 get a pair of headphones. The choices are Powerbeats 2 or Beats Solo2 wireless headphones. Since the Solo2 costs $100 more customers will have to chip in $100 to get it.
Meanwhile, shoppers who buy an iMac, MacBook, MacBook Air, MacBook Pro, or Mac Pro also get a pair of Beats Solo 2 headphones. However, they are totally free due to the $300 credit given.
In related news, Citi analyst Jim Suva shared the United Kingdom's Brexit vote to leave the European Union is one reason he cut his Apple earnings forecast for the June and September quarters, according to Yahoo. The UK's future is now unclear, which could cause consumers to delay upgrading their iPhones.
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