KGI: 3 new iPads to debut next quarter will slow decline in sales, 10-10.5 inch model wildcard

In a new report out this morning from noted analyst Ming-Chi Quo at KGI Securities, we find the size of the new iPad form factor, expected in Q2 still in flux indicating that Apple may still be deciding between different sizes.

The new models will come in 12.9”, 10-10.5” and 9.7” versions. We note the 12.9” model will be the second generation of the existing 12.9” iPad Pro, the 10-10.5” model will be the high-end model equipped with a narrow bezel design, and the 9.7” model will be the low-priced option. The former two models will have an A10X chip manufactured by TSMC (2330 TT, NT$ 183.5, N), while the latter comes with an A9 chip made by Samsung LSI. Although we estimate iPad shipments in 2017 will drop again YoY to 35-37mn units, we except the decline to narrow to 10% from 2016’s roughly 20%, given that the 10-10.5” model may see more demand from commercial/ enterprises and tender markets, while the low-priced 9.7” model may have a greater shipment contribution and likely account for 50-60% of total shipments of new iPads.

Perhaps most interesting for AAPL stockholders is the psychological impact of iPad sales leveling off and greater ASP…

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