Right on, guys. Discretionary spending is dropping, forcing all kinds of retailers to close stores or go out of business entirely. Who needs an iPad when you can barely make rent or fill your gas tank?
“Right on, guys. Discretionary spending is dropping, forcing all kinds of retailers to close stores or go out of business entirely. Who needs an iPad when you can barely make rent or fill your gas tank?”
Bingo! You have nailed a very large % of the reason tablet sales are dropping off.
My wife and I for years have enjoyed asking people how much their smart phones cost and cost per month and in the past couple of years did the same with the tablets.
Few if any when asked these questions, either know the answers or were willing to tell us.
Families of 4 where the main breadwinner hasn’t had a decent raise in years often have a smart phone for everyone in the family and at least one tablet if not more. They often complain bitterly about the price of groceries, utilities, rent, gasoline and etc, and somehow they justify the very high monthly costs and initial outlays.
The second reason is business wise. The corporate CFO’s may be saying no to tablets. Two young relatives have had that happen. Both are key execs involved daily in critical decisions with two different companies.
Last year, one got the latest I phone and I Pad from his company with everything service wise paid for. At first he used both. Then, he found that he needed his I Pad less and less in the field and hardly ever in the office versus his office PC. His daily use of the I Phone has grown basically every month. He and his peers have the same approach, which is, “If what you want to communicate with me is not one where we need legal documentation, text me via my I phone and expect a quick and simple/short answer. If your need to communicate an issue that is lengthy and could be legal, send me an email and don’t text me. His business use of his new I Pad has dropped to all most nothing. His use of his IPhone increase each week, and it has made his job much easier time wise and response wise.
Last week, he was told that his company will discontinue the service on the I Pad, this 1 July, the start of their new fiscal year. He can give his I Pad to his kids or keep it at home for fun and games.
The other brother had an old android phone and service paid for by his company. At the first of last year, he was given an I Pad by his company last year with a full Verizon service and told to use it for business and personal use.
At the first of this year he got a new I phone with a full service with no limits contract paid by his company. It was stressed that he use the I Phone where possible versus the tablet. This first of this month he was told when his I Pad service runs out at the end of this calendar year, his company will not renew the service. He can keep the I Pad, but he will have to pay for the service on his own. The monthly contract + overage cost for his IPad are well over $100 per month. He will use his Comcast WiFi with his pad at home, and his new I phone with the service paid for by his company will become his main digital communication tool. His I Phone takes great pictures, and it is easy to transfer them to his I Pad.