This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why Reports of the iPad's Death Are Greatly Exaggerated

NEW YORK (TheStreet) -- Apple's (AAPL - Get Report) fiscal third-quarter financial results were bright overall.

Earnings beat expectations, although the iPhone numbers were slightly below estimates and Apple's revenue projection for its fiscal fourth quarter ending in September was below analysts' forecasts.

Shares of Apple were up 2% in Wednesday morning trading as observers are still excited about the company's products to be rolled out during the fall.

Here's the Biggest Takeaway From Apple's Solid Earnings

GM Shares Are Oversold, and Earnings Will Prove It, Analysts Say

Yahoo! Finance Is Betting on Tumblr for Finance

One weak point in the earnings release stood out, however -- the disappointing iPad numbers. Apple sold 13.3 million iPads during the quarter, which was the lowest level in more than two years.

On the post-earnings conference call, Apple CEO Tim Cook said that, "while iPad met our expectations, we realize that they didn't meet many of yours."

You only have to look at a chart of iPads and iPhones sold over time to conclude that iPads have not only flattened out, but they appear to be in decline.

So there were many on Twitter last night, singing a requiem for the iPad.

One conclusion appears to be that because iPads haven't tracked the success in volume of iPhones, that the product is a failure.

That appears to be a premature conclusion. Here's why.

When iPad was launched in 2010, it was immediately dismissed. Google (GOOG) CEO Eric Schmidt called it nothing more than a large iPhone. Others discussed how Microsoft (MSFT) had already tried to promote a tablet and how it had failed.

The critics were wrong. The iPad is now a multi-billion-dollar franchise for Apple with an astonishing number of iPad-unique applications.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%
TSLA $222.56 -4.20%
YHOO $36.00 -0.03%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs