CITI: The iPad Business Is Collapsing (AAPL)

The strength of Apple’s iPad business is collapsing as lower priced, smaller tablets eat into sales, says Citi’s Apple analysts in a new note this morning.

 

The 9.7-inch iPad’s unit sales were only up 1.8% on a year-over-year basis in the fourth quarter, says Citi, citing IDC data. In developed markets like the U.S. and Japan, unit sales were actually down quite a bit.

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The bigger iPad is being replaced by Apple’s iPad Mini, as well as the 7-inch tablets sold by Samsung and Amazon.

According to IDC, Apple has 38.8% of the tablet market, which is industry leading, but is down from its peak of 56.8% in the second quarter of last year. Amazon has 15.5% of the market, and Samsung has 13.1% of the market.

Read more: http://www.businessinsider.com/citi-the-ipad-business-is-collapsing-2013-2#ixzz2KhUCGXg3

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