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Apple really needs some new iPads, earnings call reveals

Apple’s aging iPad line-up suffers lower sales in Q2 earnings report as fans anticipate refreshed models and the arrival of the iPhone 16.

Custom image for Apple Q2 earnings report news with various iPads on a purple background

We’re expecting the big reveal of Apple’s next iPads next week, and that date can’t come soon enough, according to data revealed in Apple’s Q2 earnings update. The brand’s iPad revenue has fallen by 17% year on year, which shouldn’t be too surprising, given that this is the longest Apple has waited before refreshing the lineup.

iPhone sales are also down by 10% ahead of the arrival of the iPhone 16 later this year, but Apple’s service business picks up the slack, increasing by 14% compared to Q2 last year, The Verge reports. As for the fancy new Vision Pro, Apple didn’t reveal how well it has performed. Given the niche appeal and high price point, though, I’d hazard to guess it doesn’t make much of an impact.

This is the last earnings update we’ll be getting before WWDC in June, and we’re anticipating Apple revealing its approach to generative AI at the show. It’s no secret that Apple is lagging behind some of the competition in this area, so fans and investors are eagerly awaiting the news.

“We believe in the transformative power and promise of AI, and we believe we have advantages that will differentiate us in this new era,” Tim Cook told analysts on the call. As for what that looks like on Apple’s platforms, there’s plenty of speculation. Bloomberg’s Mark Gurman says the first AI features will all run on-device, and there are whisperings of Apple exploring partnerships with Google and OpenAI, too.

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In the meantime, though, it’s the iPads we can get excited about. We’re expecting Apple to reveal new iPad Pros with OLED displays along with new iPad Air models on May 7. While you wait for the refresh, check out our guide to the best iPad games to ensure you have something good to play on the new hardware.