Deepwater Asset Management's managing partner, Gene Munster has predicted that Apple Inc.'s (NASDAQ:AAPL) iPads will witness a significant surge in sales this year, however, the future might be a bit difficult.
What Happened: On Tuesday, Munster shared his insights on the future of iPads saying that it will witness an increase in sales in June and September, but the “tailwind will likely fade in 2025.”
In his note, shared on X, formerly Twitter, Munster said that three of the four iPad models have received long-awaited updates, including a thinner design, larger screens, faster chips, and increased memory.
According to Munster, the iPad currently accounts for 7% of sales, a figure expected to rise to 8% within the next year following the updates on Tuesday, before gradually declining thereafter.
“Looking into 2025, I expect the iPad to be on a steady decline of around 2% as the segment is impacted by the reality of infrequent upgrades,” he said.
This trend is attributed to the iPad’s longer upgrade cycle due to its less frequent usage ...