Apple hopes that Tuesday will mark a turnaround for the slumping sales of its iPad with the launch of the latest version of the iconic tablet.
The unveiling of a new iPad will take place at an event in San Francisco and marks the first tweaking of the popular product in a year, a report on CNNMoney said. The model will be thinner, faster and offer a fingerprint sensor – far from a major overhaul.
"What are they supposed to do, add wings and make it fly?" quipped Colin Gillis, of BCG Financial. "It's a tablet. There's only so much you can upgrade."
The numbers speak for themselves: Sales of the iPad dropped to $6.3 billion during Apple's third quarter, which ended in June – a 27-percent decrease compared with the same period in 2012, CNNMoney reported.
In the two previous quarters, sales of the device increased 40 percent and 22 percent, respectively.
In addition, Apple now possesses one-third of the tablet market when, last year, it had 60 percent of it. Competitors Acer, Lenovo and Samsung tripled their share of the table market last quarter.
That’s cause for concern, Gills said.
"The iPad is the company's second-largest revenue stream, so you definitely can't discount it," he said.
Also on Tuesday, Apple will reveal an upgraded iPad mini that features significant improvements to its screen resolution. The smaller-size tablet is catching on with consumers and becoming a promising market, said analyst Rhoda Alexander, noting that it is expected to grow to 55 percent this year and to 57 percent by 2017.
"The seven-inch is absolutely dominant right now, and we expect it to stay that way for some time," Alexander said.
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