Apple Inc. (NASDAQ:AAPL) reported impressive second-quarter earnings that have kept the tech industry going, awaiting to see the impact of its product cycle that set to receive a refresh in September with iPhone 6. MD & Senior Analyst, Daniel Ives, told CNBC that the second-quarter earnings were a victory for both Apple and Microsoft Corporation (NASDAQ:MSFT) in the tech industry. The major setback in the second quarter was the fact that iPad sales were quite soft despite contributing a huge chunk of the company’s earnings.
The whole industry has been experiencing slow growth in terms of gadget sales something that is not of concern to Apple Inc. (NASDAQ:AAPL) alone, but also to the likes of Microsoft Corporation (NASDAQ:MSFT) and Samsung Electronics. “I think they got to keep it going but there is no doubt that you are starting to see that slow in terms of tablet sales sure to get into this 6th-7th earnings of the products and growth cycle. Now it is really not only just for Apple but for Samsung and Microsoft. It’s looking across the board in terms of wearables mobile other areas in terms of product refresh,” Said Mr. Ives.
The slow growth in iPad sales could continue for some time as more people continue to make a shift into the wearables space according to Ives. Product refreshes will need to kick in for Apple Inc. (NASDAQ:AAPL) if it has to shun increased competition from other players in the space. Apple will have to shift its focus into other areas for growth such as wearable’s which is considered a $10-15 billion industry.
“Apple Inc. (NASDAQ:AAPL) has been a pioneer of this tech food chain in the last you know 10-15 years and I think to some extent wearables is where you’ve seen most of this tech companies going. Call it a 10-15 billion market opportunity. It’s all about getting further in trends with the consumer” aid Mr. Ives
The second half will mostly be about the launch of new products for major tech companies such as Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN) and Samsung creating an arms race in terms of attracting the end consumers for improved product sales.