Analyst: ‘the worst is over’ for declining iPad sales with three new models coming

Apple will introduce In a note to clients — as noted by MacRumors — KGI Securities analyst Ming-Chi Quo says Apple will introduce three iPads in 2017: a 12.9-inch iPad Pro 2 and a "low-cost" 9.7-inch iPad, along with a new bezel-free, mid-size model in the range of between 10 and 10.5 inches. 

He writes: “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.”

The analyst says “the worst has passed” for declining iPad sales, though he still expects sales figure to be down slightly year-over-year.