SAN FRANCISCO, CALIF. (TheStreet) -- Apple's (AAPL) iPad won't be flying off shelves this holiday season, according to a new study from Pacific Crest Securities. The investment bank's analysts found that demand for tablets, particularly the iPad, is down sharply from years past.
Just 16% of consumers intend to buy a tablet over the holidays -- down nine percentage points from last year. And Apple is capturing an even smaller piece of the action than last year, Pacific Crest found. Roughly 5% of consumers said they planned to buy an iPad during the holiday shopping season, which is down from around 10% in 2013, according to the report.
Dubbed the "Holiday 2014 Consumer Technology Survey," this annual study looks at shifts in consumer behavior and is based on a survey of 885 adults and takes information from the U.S. general consensus.
The 2014 report foretells continued trouble for Apple's tablet category, which has been in decline in recent quarters. In the September quarter, Apple sold 12.3 million iPads for $5.3 billion in revenue. Unit sales were down 7% sequentially and 13% from the year-ago quarter. iPad revenue in the September quarter fell 10% from the previous quarter and 14% year-over year. Pacific Crest is anticipating a 4% decline in iPad units in Apple's 2015 fiscal year.
Meanwhile, according to the report, holiday season demand for tablets running Google's (GOOG) Android operating system "fell much less than demand for iPads, which suggests the incremental buyer is more of a value buyer."
Despite the unfavorable iPad forecast, Apple shares finished up 1.5% at $114.12 on Tuesday. Monday the Cupertino, Calif.-based company received an extreme vote of confidence from Citi Research, which believes Apple will materially increase profit margins on iPhone 6 and 6 Plus sales during the December quarter. As a result, the firm raised its 12-month price target to $135 from $120, and boosted quarterly revenue and profit estimates.
--Written by Jennifer Van Grove in San Francisco, Calif.
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