2015 is the year of the iPad deal

Cupertino haters may not like to admit it, but Apple killed it during the holiday quarter. According to Dealnews.com, it was an earnings quarter for the record books.

“Despite strong competition from its rivals, the Cupertino-based giant managed to grow its iPhone unit sales to an all-time high of 74.5 million. Mac sales also increased 14% to reach 5.5 million units.”

If there’s a weak spot in Apple’s otherwise excellent earnings report, it was the iPad. Sales of Apple's tablet dropped from 26.04 million units in Q1 of 2014 to 21.4 million units in Q1 2015 (according to the fiscal calendar). The drop came despite Apple’s efforts to create demand with its new iPad Air 2 and iPad Mini 3.

“But Apple's weak spot is a blessing in disguise for consumers, because as our deal data shows, iPad discounts have never been better. As such, we're predicting that 2015 will be the year of the iPad deal,” says Dealnews.

Things are tough all over for the tablet market

Remember last year when Best Buy CEO Hubert Joly said the tablet boom was coming to an end? In an interview with Re/code, Joly said sales of tablets had boomed and were crashing as sales volumes dipped last summer. He went on to say that tablets were an unbelievable phenomenon, and couldn’t remember a technology product category that had as massive a launch and acceptance.

It seems he was onto something.

“A recent report by IDC indicates that tablet shipments have fallen year-over-year in the fourth quarter for the first time since the market's inception in 2010. And if you think Apple is the only company struggling, think again. Amazon saw shipments of its Kindle Fire plummet 70% last quarter.”

Despite early excitement, many consumers avoided tablets because the devices seemed to mimic what their smartphones could already do, only bigger. Since the arrival of the tablet, smartphones have also gotten bigger.

“While its difficult to predict precisely why tablets are feeling the hurt, some analysts and industry experts have made strong cases. Among them are the rise of the phablet and the consumer's inability to work on a tablet. Sure, you can edit photos and tweak spreadsheets from your iPad, but most first-time buyers will still turn to their tablets for entertainment before productivity,” says Dealnews.

Apple's iPad arguably invented the tablet market. Others had tried, but handheld tablets devices didn’t take off until the iPad was released. The company is still the market leader in tablet sales. However, durability – and the seemingly endless announcements of newer, allegedly better iPads, –have caused shoppers to buy less of Apple's tablet, since older models are holding up extraordinarily well with time. Consumers also seem to take better care of their tablets. Phones are routinely exposed to harsh weather, jostling in pockets and car holders, falling to the floor. Tablets, on the other hand, are generally kept better protected.

This may be bad for Apple, but it’s good for consumers looking for good deals. The data shows these factors have led to a record number of iPad deals.

An Explosion of iPad Deals

“Our deal database indicates that the tablet gloom has led to an increase in both the number and the quality of iPad deals. We've reported on the increase in Apple deals before, but lately things have begun moving faster. For instance, 2014 saw a 40% increase in iPad deals when compared to the total number of iPad deals we posted in 2013. Our number of iPad Editors' Choice deals also skyrocketed last year, increasing by an unprecedented 125%. (Editors' Choice deals are marked as such when they offer rare or all-time low prices; basically, they're exceptionally good, or better than average.)”

Apple in 2015: Buy the iPad, But Don't Expect a Ton of iPhone Deals

Although the holiday season is known for its exceptional sales, the iPad Air 2's price continued to fall after the holidays were over. The drop was small, to $390, but that’s a solid purchase for an Apple tablet that isn’t yet 6-months-old.

“As 2015 progresses, we predict this price will become ubiquitous with a handful of retailers offering the tablet at an even lower price point on select holidays.”

Bargain hunters looking for iPhones, however, may not be so lucky. The iPhone, by comparison, is seeing fewer deals. Looking back to Apple's earnings report, you’ll notice the iPhone saw amazing growth, reaching a record-breaking 74.5 million unit sales. Actual deals on iPhone, however, are dropping considerably. And not in a way that’s good for consumers. Research shows that in 2014, there was a 28% decrease in the total number of iPhone deals, versus the total number Dealnews posted in 2013.

“Meanwhile, in November of 2014, we saw a 71% decrease in iPhone deals when compared to November of 2013. Our number of Editors' Choice deals also dropped by an even greater 86%. Fortunately, deal price points weren't affected too much. In November of 2013 we saw the iPhone 5s sell for $100, whereas in November of 2014 we listed the iPhone 6 for $99. Instead, what's currently changing is the amount of iPhone deals available.”

Apple may be shipping more iPhones, but retailers are discounting these phones far less often. The iPad, which has actually shipped fewer units, is seeing an explosion of deals. While this may sound like common sense, deal hunters can use this to their advantage by purchasing the iPad now while deals are good, and perhaps being more cautious about how much they spend on an iPhone.

“And with rumors of Apple launching a bigger iPad Pro tablet, complete with a 12.9" screen and stylus, deals may get even better as this could further dilute Apple's tablet lineup and cause retailers to make further discounts.”

Whether or not you believe the rumors, you can count on 2015 shaping up to be the year of the iPad deal.

Do you really need a bigger iPad? This video by Hot Stock Minute mentions iPad sales trends and what is yet to come for Apple tablets: