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Apple Inc. introduced its first redesigned entry-level iPad in five years, as well as a new speedier Pro model and a cheaper TV set-top box, seeking to entice consumers as it heads into what’s expected to be another record holiday quarter.
The latest iPad Pro now sports the same M2 chip used in recent Mac computers, while the entry-level iPad is getting a fresh design and new charging port, the company said Tuesday in a series of online announcements. The new Apple TV device, meanwhile, has a lower price and more storage.
The changes help revitalize products that are often overshadowed by Apple’s iPhone, the company’s biggest moneymaker. The iPad generates roughly 9% of the tech giant’s revenue and enjoyed a resurgence during the early days of the pandemic, though it also suffered from supply shortages. The company’s home products, part of a division that includes the Apple TV box as well as smartwatches and speakers, generated nearly 11% of revenue last year.
Apple is expected to rake in more than $128 billion in its December quarter, up about 4% from a year earlier. That’s slower growth than it’s seen in recent holiday periods, but the company is contending with sluggish consumer spending, inflation pressure and fears of a recession.
Apple had initially intended to boost iPhone production this year to meet an uptick in demand, but it scaled back those plans in recent weeks, Bloomberg News reported. The Information said Tuesday that Apple is reevaluating demand for the iPhone Plus, a new model with a large screen but not the features of the iPhone 14 Pro or Pro Max.
Apple shares dipped 0.3% to $141.95 as of 3:15 p.m. in New York.
Tuesday’s crop of new products could give consumers a reason to upgrade or spring for a higher-end model. The new iPad Pro and Apple TV represent the first refreshes to those products in a year and a half. After a minor update in September 2021, the entry-level iPad now has a whole new look — and a $120 price increase.
The Apple TV box is still central to the company’s living-room strategy, but the product has been eclipsed by cheaper rivals from Amazon.com Inc. and Alphabet Inc.’s Google. The device only accounts for about 5% of the market, according to recent data from EMarketer Inc.
With the iPad Pro, first introduced in 2015, Apple has sought to make the device a compelling replacement for a laptop. The Cupertino, California-based company offers a Magic Keyboard with a built-in track pad.
