In Q1 Apple outperformed the projections of IDC and others who thought Apple's iPad would show little to no growth year-over-year. The facts illustrated that Apple's iPad experienced a healthy 65% leap in year-over-year sales going from 11.8 million units to 19.5 million units. After experiencing stellar iPad growth last quarter, a new report by KGI financial services now paints the gloomiest iPad prediction to date.
KGI is reportedly predicting that Apple will experience their first ever decline in iPad shipments. In all, iPad shipments are predicted to suffer a quarter-to-quarter decline of nearly 25% or what amounts to about 10-15% year-over-year for the second quarter of 2013. KGI is predicting that Apple will only sell 14 to 15 million units in this current quarter. In respect to the iPad mini, KGI predicts a sharp 40% decline in quarter-over-quarter shipments.
Ming-Chi Kuo who serves as one of KGI's expert analysts says that worldwide competition from Android device makers, such as Samsung is the main cause in the slower sales. Yet in perspective, rumors that Apple's high-quality Retina display will be coming to the next iPad mini may be the real reason for consumers holding back purchases. Any loss in sales in the current quarter would surge back in calendar Q3 if Apple ships the new iPad mini with a Retina display early in the quarter.
We'll be sure to review KGI's predictions when Apple announces their Q3 financial results (calendar Q2) in July to see how accurate their predictions were. Will it be Apple's iPad numbers that will fall dramatically or KGI's reputation for accurate forecasting? Only time will tell.