Apple completely abandons the iPad 4

Just a week after Apple released the latest generation of iPad Air, the iPad 4, which had been causing Apple "great unease," was discontinued to clear the way for the official release of the iPad Air three days later. Meanwhile, the "antique" iPad 2, which is two and a half years old, continues to be sold, creating a "strange" product lineup.

In the new quarterly financial report that Apple just announced early this morning, iPad sales were slightly lacking, reaching only 14.1 million units, lower than the previous fiscal quarter's 14.6 million units but exceeding last year's same period total of 14 million units. It still fell short of Wall Street analysts' expected 14.5 million units. Among these, the fourth-generation iPad, which hastily replaced the iPad 3 in the market a year ago, saw minimal upgrades with only its processor and interface improved, resulting in poor performance over the past year. Much of its market share was taken by the concurrently launched iPad mini, which has left Apple feeling regretful.

In an earlier quarter, iPad shipments totaled 14.6 million, a 14% year-on-year decline, and far below analysts' expectations of 18 million. This was a stunning reversal for both Apple and its iPad business, as iPhone shipments have never experienced a year-on-year decline. Meanwhile, Android tablets aggressively expanded their market share, at one point surpassing 50%, causing iPads to gradually lose their dominant position in the tablet market. More frighteningly, iPad performance directly affects Apple’s overall performance because its revenue correlates with the company's stock price by 68%, higher than the 62% correlation for iPhones and 40% for Macs. Therefore, Apple urgently needs the iPad Air to reverse the declining trend of the previous generation.

During the press conference on the 22nd, Apple gave almost no opportunity for the iPad 4 to "survive by price reduction." Instead, it decisively removed this product from the lineup while allowing the more price-competitive iPad 2 to continue battling in the entry-level market.

For the current 16GB WLAN model, the iPad Air's price of 3588 yuan maintains Apple's consistently "high-end" image, whereas the iPad 2's price of just 2888 yuan keeps the pressure on a host of Android and Windows RT tablets. In this context, the iPad 4 indeed has no space or value to exist.

We can also see Apple's unique product philosophy here: while ensuring the new generation of products remains sufficiently excellent, it uses price reductions for older generations—even two generations prior—to explore the entry-level market, thereby suppressing competitors. This is also why the iPhone 4/4s (8GB) is still available for sale today.