The Causes Of A Decline In The Amount Of Sales Of Ipads Coursework Example

BUSINESS PROJECT – ESTIMATING THE CAUSES OF A DECLINE IN THE AMOUNT OF SALES OF IPADS
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Abstract
Apple has made the lives of people easier through its technological innovations. This paper establishes the causes of a decline in the amounts of Apple’s iPads. It also attempts to research a model that can be used to analyze the factors that influence the number of sales. Also, the paper compares the relationship between the amount of sales of iPad products and those of the competitors in the processing of looking for the solution. Similarly, the article, at the conclusion outlines strategies and recommendations that can be used to reverse this decline in an attempt to safe iPad models and Apple as a whole. Numerous tools were employed to assess the company’s environment (both internal and external). These include SWOT analysis, the Porters five forces model, and the PESTLE. An examination of the company was carried out on its corporate governance, strategies and its corporate social responsibility. The research design of the paper was carried out with the help of statistical tests. This was necessary as statistical tests are ideal when determining the suitability of the data and the research model itself. A normality test was used to test if the data were normally distributed. The test also played in role in determining the biasness of the data. Among other tools are F-test, t-test, and the programming language which helped to establish the value of r.

The results from the research demonstrated that the amount of Apple’s iPad sales had a relationship with the cost of competitors’ products, the cost of iPad, economic factors and the amount spend on advertisement. Among the recommendation given in this paper is that Apple needs to revise its iPad prices in addition to adjusting its screen size, as some consumers used that as one of the ways of justification when they wanted to buy. The research paper recommended further research using new models of iPad or other models to ascertain if a solution can be found.
Keywords: CSR, SWOT, IPad, PESTEL, Ethics, Strategy, R&D & IT
Contents
TOC o “1-3” h z u Introduction PAGEREF _Toc508321595 h 5A brief history of iPads PAGEREF _Toc508321596 h 5Problem statement PAGEREF _Toc508321597 h 6Importance of the research PAGEREF _Toc508321598 h 6Hypothesis PAGEREF _Toc508321599 h 6Literature review PAGEREF _Toc508321600 h 7Research objectives PAGEREF _Toc508321601 h 12Secondary objectives PAGEREF _Toc508321602 h 12Methodology PAGEREF _Toc508321603 h 13Outline of approach PAGEREF _Toc508321604 h 13Research design PAGEREF _Toc508321605 h 14Reasons why this method was used PAGEREF _Toc508321606 h 15Sampling PAGEREF _Toc508321607 h 16Tools that were used to analyze the performance of Apple PAGEREF _Toc508321608 h 16Environmental Analysis PAGEREF _Toc508321609 h 16SWOT Analysis PAGEREF _Toc508321610 h 17PESTEL Analysis – Apple’s external environment PAGEREF _Toc508321611 h 18Porter’s Five Forces Analysis PAGEREF _Toc508321612 h 21Data and interpretation PAGEREF _Toc508321613 h 22Analysis PAGEREF _Toc508321614 h 27Discussion PAGEREF _Toc508321615 h 28Measure of variation PAGEREF _Toc508321616 h 28The coefficient of determination (r2) PAGEREF _Toc508321617 h 29Inference about the slope PAGEREF _Toc508321618 h 29F-test for significance PAGEREF _Toc508321619 h 31Conclusions and recommendations PAGEREF _Toc508321620 h 32References PAGEREF _Toc508321621 h 36APPENDICES PAGEREF _Toc508321622 h 41Appendix A1: Table 1 (number of iPad sales in millions from 2010 to 2017) PAGEREF _Toc508321623 h 41Appendix A2: a bar chart of iPad sales against years PAGEREF _Toc508321624 h 43Appendix A3: A bar chart showing percentages of iPad revenue from 2010 to 2018 PAGEREF _Toc508321625 h 44Appendix A4: A table showing iPad prices against competitor’s prices PAGEREF _Toc508321626 h 44Appendix A5: iPad market share from 2011 to 2017 PAGEREF _Toc508321627 h 45Appendix A6: a figure showing normality of the data PAGEREF _Toc508321628 h 46

IntroductionThe number of sales in a company is significant and largely determine the financial performance of a company. Sales made by a company are influenced by several factors such the intensity of the advertisement campaign, competitors, marketing strategy and products, prices of a commodity in relation to competitors and external factors such as the political factors, technological factors, economic factors and legal factors. (Yu Liu, Xun Liang, & Xiaoping Yang, 2016). This paper aims to estimate the causes of a decline in the number of sales of the iPads in Apple Inc.
A brief history of iPadsSteve Jobs unveiled the iPad in January 2010, and they were available to the customers after three months. From then, the company has released six versions of the same to the market. Unlike the earlier tablet personal computers, the iPads was promoted and sold as a consumer device aimed to fill a gap between laptop computers and smartphones. The device, in make, is almost similar to Apple’s iPod Touch and iPhone since it uses the same multi-touch user interface as well as the operating system. Since the release of the IPad in 2010, over 350 million of them have been sold (“Global Tablet Market Share Held by Tablet Vendors from 2Nd Quarter 2011 To 4Th Quarter 2017”). After the iPad Air model was released in November 2013, the sales of iPads climbed to reach over 26 million units during the last few months of 2013. This is above the triple the number of sales that the firm made at the end of 2012. As a result of this sales, Apple Inc. made a profit of over 11 billion U.S. dollars in the first three months of 2014 “Global Tablet Market Share Held By Tablet Vendors From 2Nd Quarter 2011 To 4Th Quarter 2017”.. This was the highest amount the company had ever made in a quarter. The revenue from the sales of iPad accounted for approximately 7 percent of the firm’s net profit in the first quarter of 2017.
The iPad led the tablet market at the beginning of 2012 since Apple’s iPad was responsible for approximately 65%of the total number of tablets shipped. Unlike the early days when the device was launched, the company’s market share from the device has decreased, and the trend seems to continue. Apple Inc. held a market share of 24.7% during the fourth quarter of 2016. This was a decline when compared to the previous years, and many factors can contribute to this. Despite this, the company is still toping the market given that its two main competitors (Lenovo and Samsung) each had less than 20 percent of the market share.
Problem statement: Decline in the number of sales of iPads
Apple’s iPad, that once had huge sales have been reducing year after year. The sales which at one time hit 16.4 units had dropped to 12.6 units. This is a decline of 23 percent.
Importance of the researchThe research wishes to establish the causes of a decline in the number of sales of iPad and suggest solutions needed to mitigate the problem. The results on the causes of a drop in the sales will be useful to the management during the making of strategic decisions aimed at mitigating the problem.
HypothesisThe following are the possible reasons that result in the decline of the sales:
Advertisement – The intensity of the advertisement campaign made by a company is crucial. Apple Inc. carries out a well-organized advertisement to improve their sales. The intensity of advertisement is reflected by the amount of money invested in the advertisement of the iPad product. (Yagan, 2014).
Economic factors – The economic factor determines the real income of the consumers. Growing economy means that the real income of the consumers represents the purchasing power. Low purchasing power may prompt consumers to abandon luxurious products such as iPad for the basic products such as food and clothing. The levels of the economy can be represented by factors such as inflation, GDP, per capita income. (“1.7. Aggregate economic indicators,” n.d).
Prices of the commodity – The price of the commodity also determines the number of purchases made. The prices of the commodity determine the number of people who are able to purchase the commodity. High prices may discourage more people from purchasing. (Yagan, 2014).
Prices of the main competitor product – The prices of the competing products in the market also influence the sales of a product. Consumers may turn to a cheaper substitute if the prices of a commodity are much higher than those of the product. To maintain high sales, the prices of a product should be closely related with those of an alternative, especially when the product is not a monopoly. (Yagan, 2014).
Literature reviewThere is little research about the causes of reduction in sales in an IT company. This is a serious issue given that this is among the industries that drive the economies of many nations and also the world is changing and adopting information technology.
The impact of advertising on iPad sales
Advertising is something essential in business. It largely influences and affects the image and the way people see things as well as the way people live. Similarly, it has an impact on the way folks think and on their attitude towards themselves and things that surround them. It plays a crucial role in determining what is right, bad, right and wrong. People buy what is being said or advertised. A research conducted on the effect of advertising demonstrated what many expects. Many companies advertise without considering the quality of their products, and this is contrary to most research works. As per Arruda-Filho, Cabusas and Dholakia (2010), firms are not only required to manufacture good and quality products, but they are also required to advertise them for consumers to have information about them. Advertising help the company attain a sound positioning of their products in consumer’s minds and also help them inform their customers of their benefits. Another research by Dilger (2015), reveals that advertising won’t make an impact for a long time if the products from a given company don’t have the desired parameters. In simple terms, for any product to be successful, it should possess what consumer’s desire. This means it should be unique. Advertising informs consumers about the characteristics of the products and convinces them to buy them. The same article points out that firms should employ different methods of promotion as their essential part of their marketing activities for them to win many consumers. With the help of this early studies, advertisement of iPads is expected to bring success if it is carried well and if it contains the desired components.
Consumers perception about Apple iPad
The study was carried out to ascertain consumer’s perception towards Apple’s iPad in relation its competitors. The research was evaluated with the help of ethnographic evidence which was retrieved from the internet postings done by customers. Because the company, in the beginning, marketed this product as exceptional and revolutionary, the study focused on the way customers view the new and innovative aspects in an attempt to validate their purchase of iPad (Dilger, 2015, 103). Research on customer use as well as research reveals that technology consumers are more comfortable buying hedonic products(products related to desire), that provide them with pleasure instead of exactingly utilitarian products. On the other hand, customers seem to feel safer when it comes to the selection of product if it also possesses utilitarian features since it becomes straight forward for them to justify the new purchase and in that way eradicates the feeling of being guilty.
Established on this social/hedonic, instead of a utilitarian consumption, the research carried out examines the perceptions of consumers on Apple iPad’s necessity and its significance to them. The research endeavored to find out if product preference is linked to simple questions or to that that pertains to pleasure and satisfaction (Dilger, 2015, 103). Furthermore, the studies aimed to find out whether purchase validation is centered on preference or utility. Three things emerged from the research: this first one is the factors that makes justification of an iPad purchase, the kinds of consumers that are accountable for the success of Apple’s iPad and how the existence of previous products affect validation.
Singled-purpose verses integrated products
Another research carried out revealed a rising link between invention and integrated technology appliances when compared to single-purpose ones. Due to a wide of products, consumers are challenged with the task of making choices that require them to choose from three options: choosing convergent products, going for single-line ones, or even going for both of them. Due to this, the fight for market space is linked to product performance where single-purpose products offer lesser benefits than their multi-purpose competitors (Veryzer and Borja de Mozota 2005). Incorporated technology products such as tablets, having diverse features such as e-reader abilities, video recording, internet browsing and photography are preferred by consumers because they provide them with greater benefits than simple and single-use products including dedicated e-readers. This contrast is outlined by how integrated technology products impact consumer preferences. The higher number of functionalities in a single device triggers the interest of consumers since it assures them greater uses because of its many attributes (Veryzer and Borja de Mozota 2005).
Social Aspect of Use verses fashion
Technology products are frequently utilized as a means of demonstrating customer’s identity, lifestyle, and world-view as declared by Beverland, Napoli and Farrelly’s (2009) analysis of mobile phone consumers in the United States and Japan. Products act as a representation manifestation of identity (Beverland, Napoli and Farrelly 2009) and when it comes to mobile phones, the same case applies. Therefore, technology and fashion go hand in hand, enabling consumers to utilize an electronic tool in a personal way and integrating these as part of an individual’s appealing. These customers can come up with a robust sense of social and personal identity with the help of technology.
Of course, with the continuous change in fashion and the inevitability of introducing brand electronic products having great designs and complexity, the expectation of the consumers regarding the same products reduces over time. The image of the product is what creates the value, while consumption reflects social and personal values. In this manner, consumers are given an opportunity to present their cultural identities with the help of material goods they possess (Filho, Lima and Lennon 2014). If owning visually attractive and technological advanced electronic devices is an opportunity for consumers to present their identities, then it is crucial that they choose to remain current as newer updates are made day in day out, and this can be possessed by their other consumers. Peer pressure and this status are crucial aspects when it comes to consumer choice, and this can be used to explain why there are a lot of fluctuations in the sales of Apple’s iPad (Filho, Lima and Lennon 2014).
From other studies, consumers do not purchase electronic products just for its functional capabilities, or because they help them execute a task or improve communication. Instead, most of them go for new technologies even when minute updates have been made on the devices, provided that the new changes are substantial enough to change the idea of the appliance as a tool, or whether the change includes a new application (HOLBROOK and HIRSCHMAN 2001). Therefore, the continuous search for new electronic devices, which comprise the examination of the newest inventions on the market, is a continuous aspect in the consumption of technology, where fashion is the reason why new technologies are adopted. In essence, the symbolic characteristic of fashion is because of the fact that consumers display and figure out their identities with the help of the products they own (Lennon 2011).
Lastly, some consumers, whether through self-delusion or through the need to validate their purchase, believe that all the attributes of the products would suit all their needs, and this goes hand in hand with earlier research (HOLBROOK and HIRSCHMAN 2001). Status and diversion make part of this supposed necessity to buy the iPad, and this demonstrates the hedonic and social values to be the fundamental features of the products. The literature for this particular topic seems mixed up as a lot of factors must be put into consideration. This is because, from most research, consumers experience some confusion regarding whether buying the iPad is necessary or not.
Research objectivesThe research hopes to establish the causes of a decline in the number of sales of iPad. Apart from this main purpose, the research will produce a model to analyze the factors that influence the number of sales of a product.
Secondary objectivesEstablish the factors that influence the number of sales of iPads made.Compare the relationship between the number of sales of iPad made and those of the competitor products.
To come up with a model that would be used to forecast the performance sales of a product in the model
To prove the significance of the influence of economic factors, prices of the product advertisement and the prices of the competitor products.
To establish the relationship between the number of sales made and the prices of the product.
To establish the correlation between the sales of the product and factors that influence the number of sales.
To create a devising strategy for Apple to reverse the decline in the sale of iPads.
MethodologyOutline of approachWhile pursuing to test the suitability of the data, the research conducted a normality test to establish the distribution of the data. The descriptive statistics of the data was used to develop the distribution of the data. Approximately normally distributed data indicates a representation of the reality. Multivariate regression analysis was utilized when establishing the relationship between the quantities of sells made and different factors that had an impact on the sales (Montero Arruda Filho, Chaves Lima and Lennon 2014, 16). These factors comprised price of the competitor product, the price of the iPad, advertisements and economy products. Multivariate regression analysis is a great tool that gives a clear relationship between variables.
Amount of sales of iPad = b0+ b1 advertisement + b2 (price of iPad) + b3 (price of the competitor product) + b3 (economic factors).
The value of b0 is equivalent to the number of sales that were made when the independent variables are kept constant. This means that the value of b0 does not have any significant implication as per the model. The value of b1 is the rate of change of the number of sales with the change in the amount used in an advertisement by one unit. The value of b2 represents the rate of change of the number of sales when the price of iPad change by one unit. The value of b3 represents the rate of change of the number of sales when the price of iPad competitor changes by one unit. The value of b3 represents the rate of change of the number of sales when the economic indicator changes by one unit. The regression analysis assumes that the error term is independently identically and normally distributed with mean zero and variance σ^2. The significance of the model will be explained using the t-test. The F test and value of R squared will explain the forecasting ability of the model. (Draper & Smith, 2014).
In an attempt to develop a model that would be utilized to forecast the number of sales made, the research largely depended on the significance of the relationship between the number of sales and the independent variables. The results of the regression model were used to establish the significance of the relationship between the number of sales made and the independent variables (Draper & Smith, 2014). The significance of the relationship between the number of sales and the independent variables was proved with the help of a t-test. Apart from that, ANOVA test was also used when analyzing the data. It was used to study the effects of the independent variables on the number of sales made. F test was also conducted to establish the strength of the prediction power of the model. A correlation analysis between the two variables was carried out to establish the correlation between the prices of the stocks and the S&P 500 index value.
Research designThis was conducted through a series of statistical test outlined below to determine the suitability of the data and the research model.
Normality Test – The normality test involves the analysis of the characteristics of the sample used in the research. The normality test is used to test whether the distribution of the data is normal before further analysis. It is an important test to conduct since it gives information about the biases of the data. (O’Neill, 2007).
T-Test – The null hypothesis is that the slope coefficient that represents a beta risk as equivalent to zero. The p-value was used for the determination of whether to reject or accept the null hypothesis.
The null hypothesis, H0: bi = 0
Alternative hypothesis: bi ≠0
Accepting the null hypothesis leads to the conclusion that there exists no relationship between the variables. (Draper & Smith, 2014).
F – Test – F tests examine the significance of the model. The null hypothesis is that the model is insignificant while the alternative hypothesis is that there exists a significant relationship between the variables.
Null hypothesis, H0: b1=b2=b3=b4
Alternative hypothesis: bis are not all equal to zero.
The analysis was performed using R- statistical programming language. R programming language is selected since R program is freely available through the internet. It also can analyze a large size data using a single command. (Draper & Smith, 2014).
Reasons why this method was usedTo investigate and prove the significance of the influence of economic factors, prices of the product advertisement and the prices of the competitors’ product.
To determine the relationship between the number of sales of iPad made and those of competitor products and to also take action to improve the morale and motivation of the company’s workforce in order to make it more responsive to positively engaging in a period of change management.
To come up with a model that would be used to forecast the performance sales of the product in the company.
To create an operational marketing and promotion strategy that can be used by companies to attract their consumers and inform them of their capability to deliver quality products at competitive prices
SamplingTo come up with a credible model that represents the reality, the research utilized monthly amounts of sales between the years 2010 to 2017. Taking the historical monthly amount of sales for seven years is expected to represent the fluctuations over the years and therefore avoid bias in the outcome of the results. Despite lack of randomness in the selection of the data, the large size of the sample used was sufficient to eliminate any bias that may have tainted the outcome of the results (Montero Arruda Filho, Chaves Lima and Lennon 2014, 67). A test for normality of the data is essential to ensure that the data is not skewed. Normality test was carried out on the candidate data to ascertain that it has an approximately normal distribution. In the results, the variable advertisement was represented by the historical Apple Inc. budget for advertisement while the historical levels of inflation was not represented by the economic factors.
Tools that were used to analyze the performance of AppleCorporate governance, strategy, and ethics and their influence on the goals of Apple
Environmental AnalysisThe company’s fundamental internal strengths, as well as weaknesses, were evaluated while considering the context of the industry. Similarly, external factors, those the company have no control were examined. PEST, SWOT, and Porter’s five forces analysis were employed in an attempt to pinpoint the strength as well as weaknesses of the firm and also to determine the availability of threats as well as the opportunities in the competitive market. While this was carried out, some social, political, technological and economic factors were taken into consideration.
SWOT Analysis
This analysis details the fundamental issues from the environment which the business operates and the strategic capacity of the business that has a high likelihood to influence the strategic development. Therefore, strengths and weaknesses are factors that are found within the business environment whereas opportunities and threats are external factors affecting the organization from outside.
Strengths
Since Apple diversified beyond personal computers, the company experienced enormous growth in sales and had carefully managed its flow of cash which has propelled the company to a point it has never reached before. The analysis of strengths of Apple demonstrates that the firm is fueled by a famous brand; the company is recognized in most parts of the world, and this is due to the aggressive nature of its founder which was aimed towards creativity and innovation. Because of the existence of the innovative culture, Apple has experienced an increase in investment year after year ($2.4 billion in 2011, $3.4 in 2012, $4.5 in 2013). The firm has also raised the sales due to the skilled and experienced salespersons. Its direct sales branches have been positioned at high traffic zones, and this plays a crucial role in strengthening the firm’s profits. Furthermore, Apple is not only responsible for organizing its supply chain, but it is also accountable for publishing supplier reports which are usually done annually (Pathak, 2005, 201). This has elevated the company to high heights and has enhanced the recognition of its brand. Moreover, the strength of the company can be attributed to the trustworthiness of its name. Customers can do all it take to be the first one to buy a new product from the company (Ivanov, Tsipoulanidis and Schönberger, 2016). Lastly, the principle of easy to use is applied in the firm, and it had raised it to greater heights. The company’s products are usually easy to operate user-friendly.
Weaknesses
Being the top largest information technology corporation is not something easy as it comes with responsibilities. The corporation, just like others is also going through some challenges in some areas. As per the internal analysis of the company, Apple was found to possess robust tactics that were used when promoting its sales, but it was unfortunate that it still lacking back. This is because the company only had a few countries where it would make direct sales. Furthermore, another weakness of the company is that it only depended on a few products that dominated the market because of higher sales leaving out others. The hardware products from the company are supported by its operating system (iOS), and as per research, it is difficult to use when compared to its major competitor (Android). Unlike android which sales its products at a relatively low price, the products from Apple comes with a high price, and people consider it as a luxury. This is another issue as most people go for android products than buying from Apple as almost all of them had the same functionalities. Since the death of its founder, who was considered organized, the firm started making loses. The change of philosophy which took place when Cooks took over the leadership caused a decline in the sales that the company sold. The market share of the firm started to diminish year after year.
PESTEL Analysis – Apple’s external environmentThe external environment where the company works is not that conducive to the business. The corporation is exposed to problems that result from politics. The main reason for this is that most of the firm’s contract suppliers come from Asia. Similarly, a high percentage of sales the company made came from outside the US. Due to this, any political revolution puts the company in danger as it can trigger huge loses. Moreover, the company, at some point was facing political pressure as well as issues related to suppliers. Foxconn, one of the firm’s biggest supplier, came to limelight due to long working hours. This made some of the workers to commit suicides. Two workers died in 2010 while other sixteen were seriously injured following an explosive in the company’s supplier facility (Lennon, Mark, 2011). An evaluation carried out by SOMO revealed that one of Apple’s facility, Delta Electronics had approximately 5000 employees who were registered in workers union. This was another issue to the management even if the employees had no significant conflicts. They could trigger a political risk to the company. The firm’s political issues were not just restricted to outside the US. The company faces domestic problems. At some point, Apple restored imports of some spare parts that were used in the manufacture of iPhone, yet it had been banned by the US government. The tough America’s labor laws affected Apple’s performance as it becomes difficult for the firm to compete in an extremely competitive zone.
Economic Analysis
The company felt the impact as the world’s leading economies, i.e. US, Europe and Japan were and are still recuperating from the global recession. Moreover, the world’s economy grew as at slow pace between 2012 and 2014, and this impacted the company adversely. The corporation also had been faced by the crisis. The sales from the company had been climbing at sluggish rates. In the US, for instance, the sales in the 2011-2012 financial year increased at 50% but drop to 9% in 2012-2013. The case was the same in Europe and China as a large drop in sales were experienced. Apple registered a 4% rise in its sales in Europe compared to 31% for the previous year, and in China, there was 13% rise compared to 78% the previous year. This drop in the rates causes some concerns in the company. The causes for the decrease in the number of sales was attributed to the high rates of unemployment which hit the nations. The US had an unemployment rate of 7.9 % during the 2012-2013 period. The rates were significantly high in China and Japan too as it was 4.1 and 4.6% respectively. These rates were high when compared to the previous years, and they have had a huge contribution to the decline in Apple’s sales. The US financial problems, Euro crisis and a hard landing of huge developing nations are likely to continue to the nearest future, and this can lead Apple to a harsher economic states. Lastly, shrinking dollars was an also a source of problems for the company since if affected the transportation costs which goes to impact the profit margins.
Social Analysis
All through history, Apple Inc. has been making changes to its products to attract new consumers and meet their expectations. In the process of doing so, it has made numerous acquisitions, for instance, Prime Sense, Embark, and Topsy as well as many other alliances such as Philips, Sony, AT&T, and Motorola. In 2013, Apple’s sales improved substantially in India, and this encouraged the company to open franchises and invest heavily. This is a clear indication that Apple is showing a course of action to maximize the growth strategy.
Technological Analysis
Information technology is one of the highest earning strategies for the past decade and firms which have done a lot of innovations have benefited. When it comes to this area, Apple is setting trends, particularly in consumer electronics and put a lot of effort to innovation. The company is offering exceptional and cutting-edge technology which played a crucial role in retaining 49% of customers from 2012 to 2013. The company’s deal with China mobile (which broke) had attracted a huge number of China subscribers into the company offering Apple with an opportunity in one of the world’s fast-growing markets. Despite all these benefits that come with technology, a lot of risk factors present themselves, and Apple Inc. is vulnerable. The company should invest more in R&D due to the nature of the industry and the short product life cycle. Even if the company’s products are unique, consumers are considering screen size.
Porter’s Five Forces AnalysisA strategic and more effective decision can be made after carrying out Porter’s Five Forces Analysis.
The rivalry between Apple and competing companies (high)
The company owned a well-diversified collection of technology-based products ranging from software to hardware, and this makes things challenging for Apple to compete internationally. The effects of a highly competitive market are demonstrated by the sluggish curve of growth of sales (a reduction from 31 to 4% in Europe, 50 to 9% in US and 94 to 27% in Japan). Apart from the iPad market, Apple’s smartphone market is dwindling. In 2015, the company reported a 14% decline in its market share. Furthermore, the growth of iPad slowed to reach 13% when compared 79% of the competitors. One positive thing from the company is its less product line and simple products which are friendly to use (Coupey, Irwin & Payne, 2008). This aspect helps the company to make sales unlike its competitors where there are enough options which end up confusing the consumers. Products from Apple had high differentiation when compared to those from its competitors. Also, the firm’s distribution channels, for example, through the direct outlets and Amazon is very robust and helps the company to strategically position itself and also its products (Coupey, Irwin & Payne, 2008). From the forceful and competitive environment, Apple should focus more on computer software as well as in mobile.
Data and interpretationIPad Sales since 2010 (Quarterly)
(“Global Tablet Market Share Held by Tablet Vendors from 2Nd Quarter 2011 to 4Th Quarter 2017″ 2018)
The following is the par graph which clearly demonstrates the picture of the fluctuations.

The following bar chart shows the revenue from Apple’s iPad when compared to the company’s total revenue.
lefttop

Amount Apple spend on the advertisement of IPad
The following is the amount which Apple spent for the advertisement of iPad. There limited information regarding the same as the company stopped disclosing their data.
2010-$149 million
2011-307.7 million
2015-706 million
The number of iPads sold in respective years is as follows:
2010-8 million
2011-31 million
2015-54 million
During the calculation, the P value for this is 0.0983.
The mean difference between the cost of the iPads and the cost of advertisement is -356.56 when 95 percent confidence levels are used.
The t-value found here is as given below:
T=2.14
Df =4
The standard error of the difference is 166.208 (there is a significant relationship between the number of iPads sold and the amount of advertisement spend). The higher the cost of advertisement, the higher the number of sales made.
Comparison of iPad prices with competitors.
A sample size of 7 models was selected each having almost the same working capabilities.
iPad price Competitors prices
658$ 367$
507$ 269$
406$ 209$
765$ 390$
356$ 199$
389$ 209$
495$ 248$
Diff (X – M)
147.14
-3.86
-104.86
254.14
-154.86
-121.86
-15.86
M: 510.86
Sq. Diff (X – M) 2
21651.02
14.88
10995.02
64588.59
23980.73
14849.16
251.45
SS: 136330.86
Calculations
The first data
N1: 7
Df2 = N – 1 = 7 – 1 = 6
M1: 510.86
SS1: 136330.86
S2 1= SS1/ (N – 1) = 136330.86/ (7-1) = 22721.81
Second data
N2: 7
Df2 = N – 1 = 7 – 1 = 6
M2: 270.14
SS2: 36776.86
S2 2= SS2/ (N – 1) = 36776.86/ (7-1) = 6129.48
T-value Calculation
s2p = ((df1/ (df1 + df2)) * s21) + ((df2/ (df2 + df2)) * s22) = ((6/12) * 22721.81) + ((6/12) * 6129.48) = 14425.64
s2M1 = s2p/N1 = 14425.64/7 = 2060.81
s2M2 = s2p/N2 = 14425.64/7 = 2060.81
t = (M1 – M2)/√ (s2M1 + s2M2) = 240.71/√4121.61 = 3.75
The global market share of Apple as compared to other tablet vendors

AnalysisThe relationship between the number of sales and that of the competitors
The statistics displayed above demonstrates the market share held by Apple Inc. and other leading tablet vendors as per the global shipments from 2011 to 2017. From the most recent statistics, Apple’s iPad had a score of 26.6 percent.
Additional information about tablet market share
As per the trend, 180 million tablets are estimated to be shipped globally by 2019. From 2013, Europe has been leading the market, and it was 102 million tablets were expected to be shipped only in 2017. Asia has not been left behind as shipments were expected to rise at a high rate, which would eventually pass Europe. By the end of 2018, Asia Pacific is projected to ship about 108 million tablets. Japan is not included in this statistics since the nation’s market is huge hence it has a substantial global presence by itself.
From the bar chart above, Apple has been the leader when it comes to tablet market since 2011. The company owned over 60% of the global market. Nevertheless, Apple’s market share has been shrinking year after year. During the fourth quarter of 2016, iPads owned 25 percent of the global market. Whereas the company has lost its market dominance, other tablet producers, the likes of Samsung, Lenovo and android are increasing their share of the market within the same frame of time. Samsung’s portion increased from 7.3 to 15.1 percent (from the second to the last quarter). Lenovo and Huawei are gradually taking a substantial percentage of the global market share. The same case applies to the market share of tablets. Apple’s accounted for 94% market share during the second quarter of 2010 while Android had only 3%. However, Android had dominated the market for the first quarter of 2015, owning approximately 70 percent of the total share. During this period, Apple’s iOS represented 24 percent of the total market, while 7 percent was taken by Microsoft operating system.
DiscussionAs pointed out in the methodology section, the number of sales of Apple’s iPad can be calculated with the help of the following formula.
Amount of sales of iPad=b0 + b1+b2+b3+b4
Where b0 is a constant or the slope of the curve, i.e. the number of iPad sold when all the other variables are kept constant.
B0 for our case is 8 million units since this is the number of iPad sold without any advertising.
The resulting regression model when everything is considered is as follows:
Amount of sales of iPad=8+b1+b2+b3+b4
From the calculations above, b1=0.1098, which reveals that the number of sales of iPad increases by 0.1098(1000000) =$109800 for each additional increase in $1 for advertising. The same thing applies to the prices of the iPad, the price of the competitor’s product’s as well as changes in economic factors.
Measure of variationThe total variation of the model comprises two parts.
Sum total of squares=regression sum of squares error sum of squares.
SST=Yi-Y2=SSR= Yi +Y2=SSE=Yi-Yi2=
Given that
Y is the mean value of the variable which does not depend on the other
Yi is the observed value of the dependent variable
Yi-this is the predicted value of the changes in the number of sales given all the values of the independent variables.
The coefficient of determination (r2)This is the portion of the total variation that can be deduced or explained by the variation in the independent variable. It is also called r-squared.
r2=SSRSST=the regression sum of squares total sum of squares r2 For this case is 0.5808
The standard error of estimation can be estimated using the following formula
SYX=SSEn-2=i=1nYi-Yi2n-2Given that SSE=error of the sum of squares and n is the sample size.
After inserting the values, SYX=41.33
This is the measure of variation of the number of sales from the regression line.
Inference about the slopeT-test will help us determine if there is a linear relationship between the number of sales and the independent variables.
Null and independent hypotheses
T-Test – The null hypothesis is that the slope coefficient that represents beta risk is equivalent to zero.
Null hypothesis, H0: bi = 0 (no linear relationship)
Alternative hypothesis: bi ≠0 (there is linear relationship)
t=b0-b1Sb1d.f. = n-2
From the results generated above,
t=0.10980.0329=3.3294
The null hypothesis, H0: bi = 0
Alternative hypothesis: bi ≠0
From the calculations, there is clear evidence that the number of iPad sales has a relationship with the independent variables. Therefore, we reject the null hypothesis H0: bi = 0.
Inference about the slope
From the output,
Coefficients t-star p-value
Intercept 98.24 58.03 0.1289
Number of sales 0.10977 0.0329 0.01039
Decision: we reject H0 because p-value is less than α.
There is substantial evidence that the amount spends on advertisements, the price of iPad, the price of the competitor’s products and economic factors affect the number of iPad sales.
F-test for significanceF Test statistics
F=MSRMSEMSR=SSRKMSR=SSEn-k-1In the above formula, F follows an F distribution.
F=189341708=11.08Decision
Reject H0 at 95% significance level
.
From the F-test, there is sufficient evidence that a relationship exists between the dependent and the independent variable.
Conclusions and recommendationsThe primary objective of the paper was to establish the causes of a decline in the number of sales of Apple’s iPad. Similarly, the paper aimed to establish the factors that influence the number of sales of iPad. Moreover, another goal was to compare the relationship between the number of sales of iPad and those of its competitors. From the discussion, it is clear that a link exists between Apple’s iPad and other independent factors like the cost of competitor’s products, the amounts used in advertising, economic factors as well the prices of iPad itself.
The research paper utilized numerous articles in its literature review. One of them was a research regarding consumer usability and preferences of Apple’s iPad from the time of its launch all through. The products possess numerous software services as well as hardware integration, almost similar to iPhone. Because the product was the first on the market to possess multi-functionality and feature integration, its consumers were attracted. The product made a difference not only concerning technology but also regarding early adopters or its innovators (Vrdoljak, Vrdoljak and Skugor 2000, 236). Conversely, whereas many customers wanted to purchase the device the day it was launched, there were difficulties regarding the justification of the preference and the usage of the product. The customers who were loyal to the brand demonstrated an effective relationship and seemed to like the product at its first place (Lennon 2011). That is one of the reasons why the sales climbed during the first few years after the launch and the started to decline. The brand triggered such a high dedication to its loyal consumers, and they perceived its features to be superior to those of the same products even before their release.
The findings from this paper come with numerous consequences. From a practitioner, the findings are useful, particularly to companies that produce new technology as it helps them to know what factors to consider when producing their electronic products. Since one product can create the way for the creation or modification of another, firms could come up with marketing plans which can be used during the development, application and the introduction of sequential technology products. For companies to produce high-quality products that meet the needs of the consumers, they should utilize the previous customer’s feedback when building other products. Nonetheless, firms should be aware that new products should have a high level of utilization integration for them to have a substantial share in the market. Furthermore, a high level of utilization can be used as validation by consumers when they want to purchase the products.
In the case of academic point of view, this research can be utilized when trying to understand product justification which is helpful to high-technology product consumers. The study can also be used to confirm previous researches which have been carried out and regards utilitarian intentions about consumer buying decisions while increasing enquiries into brand new technological products. The research can also be used to explain the phenomenon of using validations from a previous product onto a new one having attributes that are taken to be the same. Therefore, the research paper can be employed to open new avenues for other researches and explorations.
While the research paper was done with precision, it is not free from limitations. Firstly, it attempts to determine the causes of the decline of Apple’s iPad yet the product was released in 2010. The means that the time the product has spent on the market can be limited or has some limitations. Similarly, the company has not disclosed the amounts which have been used to advertise its products since 2015. This means that data from only three years were used. Therefore, the netnographic which was used in the literature review might not be sufficient to point out precise details or results. However, the research paper suggested several steps that can be employed when carrying out future research on topics touching on technology and sales.
In a more comprehensive research, scholars could take part in discussions which the consumers and ask numerous questions which are already predefined. This can assist companies like Apple to determine the cause of the problems that result in a decrease in sales of its products. Equally, new research which employs both qualitative and quantitative techniques could be carried out with later versions of iPad or other technology products. Such studies can help analyze social factors of various products, and clarify new modes of product utilization to both academics and practitioners. These discoveries could help a great deal given the rates at which technology is accelerating. As technology products continue to evolve, so as the consumers since they are becoming capable of realizing and embracing products that come with additional pleasure and enjoyment. This is the only way that can be used by companies like Apple to end a decline in a line of products that can bring losses to the company.
As stated earlier in this paper, Apple has a lot of advantage since it has few product lines. The company has a technique of waiting for some time before bringing a full package to its target market while focusing on the profit margins. The company, at one point, was extremely successful in selling to its consumers and it had one of the highest satisfaction ratios. One major problem with this company is competition from many other companies who are offering the same line of products, having the same properties but with extremely low cost. To survive in the future, the firm should revise its iPad prices a little bit and see if there is any difference. Another thing the firm should do is to focus on creative ways of advertising and increase their adverts. Microsoft and Samsung spend huge amounts of money on advertisements, and their market share is increasing at great paces while that of Apple is shrinking. While economic factors have some effects on the sales of iPad, this cannot be the main issue as the revenue from other products could have been affected if it was due to economic factors. Another thing which the company should put into consideration is the screen size. This reveals itself somewhere in the research, and it could be one of the reasons why iPad sales have stagnated.

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APPENDICESAppendix A1: Table 1 (number of iPad sales in millions from 2010 to 2017)Quarter Sales
Q3 2010 3.27 million
Q4 2010 4.19 million
Q1 2011 7.33 million
Q2 2011 4.69 million
Q3 2011 9.25 million
Q4 2011 11.12 million
Q1 2012 15.30 million
Q2 2012 11.80 million
Q3 2012 17.00 million
Q4 2012 14.04 million
Q1 2013 22.86 million
Q2 2013 19.48 million
Q3 2013 14.62 million
Q4 2013 14.08 million
Q1 2014 26.04 million
Q2 2014 16.35 million
Q3 2014 13.28 million
Q4 2014 12.32 million
Q1 2015 21.42 million
Q2 2015 12.62 million
Q3 2015 10.93 million
Q4 2015 8.88 million
Q1 2016 16.12 million
Q2 2016 10.25 million
Q3 2016 9.95 million
Q4 2016 9.27 million
Q1 2017 13.08 million
Q2 2017 8.9 million
Q3 2017 11.4 million
Appendix A2: a bar chart of iPad sales against years
Appendix A3: A bar chart showing percentages of iPad revenue from 2010 to 2018lefttop
Appendix A4: A table showing iPad prices against competitor’s pricesiPad price Competitors prices
658$ 367$
507$ 269$
406$ 209$
765$ 390$
356$ 199$
389$ 209$
495$ 248$
Appendix A5: iPad market share from 2011 to 2017
Appendix A6: a figure showing normality of the data