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There are only two things that really matter for Apple's business right now - the iPhone and the iPad.The iPhone was surprisingly strong last quarter, driven, it seems, by growth in emerging markets where people were buying the lower cost iPhone 4S. (Apple for its part says growth was across all product categories in all regions.)
As strong as the iPhone was, the iPad was weak. iPhone sales were up 17%, but iPad sales were down 16%.For most people, between the convenience of a large-screen smartphone and the power of personal computers (complete with a nice keyboard), there are not many use cases for an iPad, or for that matter any other tablet.
People in developing countries, who can fuel the growth of a gadget, can't afford to have a smartphone, a computer and an iPad and then upgrade them every year or two. People who already have a computer are upgrading to a smartphone, because that is much better value.
As strong as the iPhone was, the iPad was weak. iPhone sales were up 17%, but iPad sales were down 16%.For most people, between the convenience of a large-screen smartphone and the power of personal computers (complete with a nice keyboard), there are not many use cases for an iPad, or for that matter any other tablet.
People in developing countries, who can fuel the growth of a gadget, can't afford to have a smartphone, a computer and an iPad and then upgrade them every year or two. People who already have a computer are upgrading to a smartphone, because that is much better value.