Following a swirl of Internet discussion that is trying desperately to suggest that the iPad is circling the drain (so to speak), Fast Company charted the growth of iOS and iPad apps between June 2010 and October 2014. The results of their research makes one thing clear: whether the iPad succeeds or not, the iOS app marketplace is growing steadily.
So why is it that iPad year-over-year sales have declined during the last three quarters? \Apple CEO Tim Cook suggests that existing users are upgrading more slowly, and other products (such as the iPhone and Mac) are cannibalizing the iPad. Those reasons certainly seem more likely than the reason being offered up by anecdotal bloggers telling us that nearly 675,000 tablet-optimized apps are disappointing to would-be iPad owners (not to mention the overwhelming evidence to the contrary showing that people using tablets are doing so in very limited ways: games, social media, surfing the web, and streaming media).
It is just as likely that the tablet market is becoming saturated, or that the larger 5.5″ iPhone 6 Plus (nicknamed the phablet) is blurring the lines between smartphones and tablets enough that users don’t want both… regardless of the reason, news that the app marketplace is thriving is good news. Oh, and as everybody tries to speculate that Apple is going to be in some kind of financial trouble because they are selling fewer tablets, should remember that the 30% they are making off each iOS app purchase is a much larger margin than they typically make on hardware.