Apple's Tim Cook: Microsoft should have released Office for iPad sooner, defends tablet sales

Apple put up some impressive financial figures for its calendar first quarter 2014 results (which happened during the company's second fiscal quarter). However, there's one bullet point that didn't impress many analysts today: iPad sales. Apple recorded 16.35 million unit sales of its various tablet models during the quarter, which is down from 19.5 million units from the same period a year ago.

That might be considered just a blip, except that Apple has also seen lower iPad sales for the fourth quarter of 2013, along with the third and second quarter of that calendar year as well. In today's conference call with analysts. Apple CEO Tim Cook tried to defend the sales numbers for the iPad, while at the same time also taking Microsoft to task for not releasing its Office for iPad software products sooner.

Cook stated, "In just four years after we launched the first iPad, we've sold over 210 million; more than anyone thought was possible." He said that was over twice as many units as the iPod sold during the same comparable time period. He added that things look "very, very good" for the iPad's prospects in the long run.

As far as Microsoft's Office for iPad launch a few weeks ago, Cook said, "it would've been better for Microsoft, frankly" to have made the software available for Apple's tablet sooner, ahead of its competitors like Apple's own iWork products. However, he still praised the fact that Office is finally available for iPad owners, saying, "Office is a key franchise for enterprise customers and having it on iPad is good. We wholeheartedly welcome Microsoft to the App Store, and customers are responding very positively."

Source: ZDNet | iPad Image via Apple

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amazingly, I prefer my £600 hackintosh over my £2,200 retina macbook pro. That said, I've also spent more money with apple owning a hackintosh as it moved me into their ecosystem.

yeah yeah Timmy. why don't you pay attention how android is eating your lunch instead of trying to make the ipad a business platform which will never be.

neonspark said,
yeah yeah Timmy. why don't you pay attention how android is eating your lunch instead of trying to make the ipad a business platform which will never be.

That's why more businesses buy Surface tablets than iPads. Oh wait, they don't....

i think there forced into it cus so many ppl have iphones it kind of makes sense to use ipads for cross information even though its not particularly up for the job

psionicinversion said,
i think there forced into it cus so many ppl have iphones it kind of makes sense to use ipads for cross information even though its not particularly up for the job

That makes no sense. Devices are not choosen based on what cell phone an employee has.

WTF? Microsoft already bailed Apple out before to prevent them from closing shop they certainly don't owe Apple crap. Stupid arrogance of apple showing up again, no one owes Apple and is obligated to develop programs for them.

swanlee said,
Stupid arrogance of apple showing up again, no one owes Apple and is obligated to develop programs for them.

Not sure what you're going on about...

"...it would've been better for Microsoft..."

swanlee said,
WTF? Microsoft already bailed Apple out before to prevent them from closing shop they certainly don't owe Apple crap. Stupid arrogance of apple showing up again, no one owes Apple and is obligated to develop programs for them.

If you want to make money you do.

The absolute ARROGANCE of apple never ceases to amaze me... why the hell SHOULD MS release Office for iPad?? with there completely closed off nature and there fascination with sueing everyone that doesnt do what they want or "copies" the simplest of things there the worst company in this generation....

Microsoft HAD to release Office for iPad. Cook is right, Microsoft should have launched it ages ago. Incompetence at Microsoft has already cost them billions in sales.

Trust me, Microsoft will be around and a major player long after Apple has been relegated to the sideline. If they will not own the company by then.

psionicinversion said,
The absolute ARROGANCE of apple never ceases to amaze me... why the hell SHOULD MS release Office for iPad?? with there completely closed off nature and there fascination with sueing everyone that doesnt do what they want or "copies" the simplest of things there the worst company in this generation....
You should never apply for the position of CEO for any company. It is not that hard to figure out the amount of money Microsoft could have made on the worlds best selling tablet.

i doubt that very much so your saying every ipad owner is going to download office for ipad? i very much doubt that tbh @£80 yeah doubtful. Besides Cook is only thinking about his own sales, he couldnt care less about office he just would want to help line his own pockets.

Does apple get a share of the cost of office? also from the looks of it anyone whose bought Office 365 Home can install it on 5 PCs, MACs, + 5x iOS devices from that 1 license and Personal is 1 PC, Mac + iOS device. So explain to me again how theyve lost any money???????????? arguement full of fail

Lol at all the Apple fans suddenly taking MS to task for releasing Office for iPad late, claiming billions of dollars in sales have been lost. Back when Office for iPad was released many of these same people were joking about how no iPad owner would buy an Office 365 subscription and that iWork's all that anyone ever needs. Stick to one story guys instead of flip-flopping daily.

psionicinversion said,
i doubt that very much so your saying every ipad owner is going to download office for ipad? i very much doubt that tbh @£80 yeah doubtful. Besides Cook is only thinking about his own sales, he couldnt care less about office he just would want to help line his own pockets.

Does apple get a share of the cost of office? also from the looks of it anyone whose bought Office 365 Home can install it on 5 PCs, MACs, + 5x iOS devices from that 1 license and Personal is 1 PC, Mac + iOS device. So explain to me again how theyve lost any money???????????? arguement full of fail

Umm, Apple didn't loose money. Microsoft did.

paulheu said,
Trust me, Microsoft will be around and a major player long after Apple has been relegated to the sideline. If they will not own the company by then.

You clearly know better than Wall Street. You pass your knowledge on.

stevan said,

Umm, Apple didn't loose money. Microsoft did.

How so? with 1 licence you can have it on PC, Mac and any iDevice, chances are someones already got office365 on there windows or mac machine so they can put it on iPad for free... no ones going to pay £60-80 for an app just for iPad, dont know how functional it is but doubt its anything special. Want do serious work laptop or work machine, light work iPad. they lost out on Jack

psionicinversion said,

How so? with 1 licence you can have it on PC, Mac and any iDevice, chances are someones already got office365 on there windows or mac machine so they can put it on iPad for free... no ones going to pay £60-80 for an app just for iPad, dont know how functional it is but doubt its anything special. Want do serious work laptop or work machine, light work iPad. they lost out on Jack

Office Appls were all #1 on the download list in the App Store shortly after release. And amongst those that downloaded, some certainly paid for it using in app purchase.

Also, those that opted for the now-free iWork apps wouldn't spend much on office. Not all but definitely some.

Need I go on? I thought this was obvious. The sooner you release an app, the more money you make.

stevan said,

Umm, Apple didn't loose money. Microsoft did.


I wonder how Microsoft lost money that they never had? What you meant to say was MS lost out on an opportunity to make money sooner.

Also office 365 was only released last year and the subscription model is what makes Office on iPad work. Without it do you think many people would have spent $200-400 on an iPad app?

i dont think they lost out on much tbh, its all speculation and heresay by "analysts" that sit on there bums talking cack all day... like if id of gone out 3 hours ago i could of had wrapping paper now, but i didnt cus ill go soon doesnt make any difference apart from the fact i could of gotten it sooner.... i dont need right away so it can wait

With the iPad hype behind us sales will drop Q over Q for the next two years until they are at or below what may be viable for Apple. Same thing will happen with phones. What's interesting to note is that Apple flat out refuses to tell anyone what percentage of iPhone sales are actually the latest models. Would not surprise me the vast majority is the previous as those come free on a 24mo contract in most cases. That and the virtual standstill in technology for iPhone along with the fairly large gape between real top end devices and iPhone makes me wonder how long they can hold up the smokescreen. There's really only two markets iPhone does very well, that's US and Japan. Anywhere else they're only slightly (single digits %) ahead of WP in most cases.

The office comment is just silly and shows Apple has no idea how to move forward. The iPad version is basically a document 'player'with minimal editing and nowhere near a full blown office implementation. I'd venture to say the online apps may be more useful in that regard..

We're moving towards the endgame here where everyone moves forward but Apple, and there's no Steve Jobs to come in and rescue the company this time.

paulheu said,
With the iPad hype behind us sales will drop Q over Q for the next two years until they are at or below what may be viable for Apple. Same thing will happen with phones. What's interesting to note is that Apple flat out refuses to tell anyone what percentage of iPhone sales are actually the latest models.

Companies don't usually break down the number of each model sold. Doesn't mean they're what you're suggesting it means, and it's really not that interesting. It's more of a well, no s***.

Would not surprise me the vast majority is the previous as those come free on a 24mo contract in most cases.

Correct says Mixpanel: http://appleinsider.com/articl...-iphones-5c-growth-stagnant

Vast majority of any phone brand sold is the lower end. Look at the Lumia.

That and the virtual standstill in technology for iPhone along with the fairly large gape between real top end devices and iPhone makes me wonder how long they can hold up the smokescreen.

The standstill bit is a nice opinion that's a bit reaching. I mean, there's no surprise that Samsung put a fingerprint scanner in the home button of the GS5, or that the HTC One M8 has built in motion tracking that works with the Fitbit app. And what's this thing about 64 bit processors? Those are coming too.

Not saying Apple invented this stuff, but it's funny to read comments about how they are at a standstill, when their main competitors start implementing stuff soon after Apple does it. Or they even enter markets Apple is rumored to enter. I also wonder how your statement can be true when Apple's stuff gets smaller and faster without impacting battery life. That kind of R&D doesn't grow on trees you know.

There's really only two markets iPhone does very well, that's US and Japan. Anywhere else they're only slightly (single digits %) ahead of WP in most cases.

And they're still able to generate more money than Android and Windows combine. Shoot, the iPhone generates more money than all of Microsoft. Market share isn't everything, man.


The office comment is just silly and shows Apple has no idea how to move forward. The iPad version is basically a document 'player'with minimal editing and nowhere near a full blown office implementation. I'd venture to say the online apps may be more useful in that regard..

I really don't know how you got that Apple has no idea how to move forward from Cook's comment. I mean, Microsoft could have benefited more if they released Office of iPad sooner. Especially when there was virtually no competition in the space, but since they waited, iWork got a bit better, and Google made improvements on their thing. There was a hole that needed to be filled, and the longer Microsoft waits, the chances of people turning elsewhere go up.

And the document player bit? If you're one, like myself, who doesn't rely on macros, it's really good. I was able to update my resume, get it sent out, and also update several spread sheets that I have set up. It may not be full blown Office yet, but it's perfect for a lot of people's needs, and that there's no law saying that it can never become a full blown version.


We're moving towards the endgame here where everyone moves forward but Apple, and there's no Steve Jobs to come in and rescue the company this time.

Except that Apple is moving forward. Microsoft is moving forward. Google is moving forward. You're too seated in your bias to see what Apple does. You're also putting a lot of stock in Jobs. Go read how some of Apple's best products came to be, and you'll quickly see that Jobs didn't hatch them.

You know, I get it. I agree that what goes up, must come down, but it makes one look silly to constantly claim something is going down when it's not. I get it, bud. You want to be able to say, "I told you so," when it finally happens forty years later.

This is why Tim Cook can never fill Steve Jobs shoes. Instead of doing something about declining iPad sales, he blames someone else for his troubles.

Mr Cook, last I checked, you were GIVING away an office suite with every new iPad Air. So why has that had no positive effect on sales? How about not worrying about your competition helping you and instead focus on making your product better. True multitasking would be a nice start.

Can't really do much about it. The market is becoming saturated. The differences between every subsequent generation of tablets is becoming smaller every time.

Look at PC sales, they've been in a slump for a while. The exact same thing happened, 10 years ago. Every 2 years you could buy a new PC that was significantly faster than the old ones. In fact you often HAD to buy a new one to even continue using the latest software. Now even a 5 year old PC will be good enough for the average user. This is sounding a lot like the current tablet situation, isn't it?

I have a Nexus 7 2013. It's capable of handling anything I would ever throw at it. I'm not interested in using it for any more than what it gets used for. Even if the Nexus 7(/8) 2014 is twice as fast, why would I upgrade?

Well. that is still impressive number. Sales can't be keep going upward indefinitely. Now market is reaching saturation point as most of the people who had to buy a tablet had already done so and now the numbers are going to be more stabilized as mainly it will be mainly replacement buyers and minor number will be new customers.

I agree with Tim. Microsoft is a software company and Apple dominates in the tablet market. Getting Office to iPad users can only be a good thing for their bank accounts. It's a no brainer.

JHBrown said,
I agree with Tim. Microsoft is a software company and Apple dominates in the tablet market. Getting Office to iPad users can only be a good thing for their bank accounts. It's a no brainer.

Is Apple still dominating against Google though? I thought Google was the dominant in smartphones and tablets now.

Well, it probably helps that Samsung is quite literally crapping out tablets.

Tab 3 7.0
Tab 3 7.0 Lite
Tab 3 8.0
Tab 3 8.4 Pro
Tab 3 10.1
Tab 3 10.1 Pro
Tab 3 12.2 Pro

I haven't even gotten into the "Note" names yet, and Samsung will also be dropping a Tab 4 on May 1st, after having just dropped the Pro series. I have no idea what they are doing, most of their cases of similar sizing don't even fit each other, not to mention screen protectors and such.

It just hurts my head thinking about Samsung. /rant

dead.cell said,
Well, it probably helps that Samsung is quite literally crapping out tablets.

Tab 3 7.0
Tab 3 7.0 Lite
Tab 3 8.0
Tab 3 8.4 Pro
Tab 3 10.1
Tab 3 10.1 Pro
Tab 3 12.2 Pro

I haven't even gotten into the "Note" names yet, and Samsung will also be dropping a Tab 4 on May 1st, after having just dropped the Pro series. I have no idea what they are doing, most of their cases of similar sizing don't even fit each other, not to mention screen protectors and such.

It just hurts my head thinking about Samsung. /rant

And the non-pro ones are pretty terrible and have crappy low-res screens.

trooper11 said,

Is Apple still dominating against Google though? I thought Google was the dominant in smartphones and tablets now.


There are probably more Android devices, but the thing to remember with the Apple issue, Apple ecosystem people are FAR more likely to Pay for your service or app. Dealing with the Apple market, is like trying to get your commercial to air in Prime Time, or during the Superbowl. Combined, more people are watching at other times, but that one time may yield far better returns..

trooper11 said,

I thought Google was the dominant in smartphones and tablets now.

Yes.... Google is "dominant" by the mere fact that 66% of tablets shipped were running some version of Android.

In the previous quarter (Holiday quarter)... there were 76.9 million tablets shipped. The breakdown is as follows, in millions of units:

26.0 - Apple
14.5 - Samsung
5.8 - Amazon
3.9 - Asus
3.5 - Lenovo
23.3 - Others

All told... that gave Apple just 33% of the tablet market for the Holiday quarter... with Android having over 66% of the tablet market.

But look at the number of tablets listed under "Others"

I'm guessing that includes a bunch of cheap tablets sold around the world... tablets we've never heard of. That's 30% of the tablet market right there. Or... almost HALF of the Android tablet market.

One reason why Google is so "dominant" in tablets is that any tablet running any version of Android is counted the same.

Unfortunately... there is no classification for Android tablets. Whether it's a $699 Samsung Galaxy Note Pro 12.... or a $69 cheapo Android tablet sold in India... they all add up to give "Android" a huge number.

So what does this mean? Not much. Developers know what's going on.

When a developer decides to support the iPad... they know exactly what they're in for. The iPad is a proven platform... with app revenue to match.

But even though Android is 66% of the tablet market... it's not exactly a clear-cut advantage.

If half of Android tablets sold are cheap throwaway tablets.... are developer really being swayed by that huge Android number? Not really. The users of those cheap Android tablets aren't giving money to developers.

But yes.... Google is "dominant" simply because 66% of tablets shipped over the Holiday quarter were running some version of Android.

Using any other methodology... app revenue, web usage share, ad share, etc... the iPad is the dominant tablet.

And there is this - Apple is opening up the OS X beta program to all running at least Mavericks. Here is the sixty-four cent (US) question - CAN Apple's detection utility actually tell Mac from Hack? If it can, that's one thing; however, if it can't, then Apple may well have thrown in the towel vis-a-vis "closed-source" OS X. (The reason I said "sixty-four cent" question is that Mavericks and Windows 8.1 actually have a common hardware base; any hardware that can run one can run the other.)

Apple utility can certainly tell Mac from Hack. There is nothing brainer in it. If Apple really wanted they could easily block Hackintosh but Hackintosh community is at very minority and it won't be posing any concern to Apple any time soon.

Most of the Hackintosh are on the Desktop and not on the laptop where Apple has the stronghold and it is mainly because of hardware driver issues mainly wireless.

Hackintosh is also not harming Apple.. there are some that build it and don't get a mac, but there's a lot of people who only have ever had PC's that use it, get a taste, then DO get a Mac..

It's like Adobe and how they deal with the Piracy of the Creative Suite.. They don't. Cause it's in their Interest for more people to use it, paid or not, because some of these people stealing it now, will end up doing it professionally, or in a business environment, where they WILL pay.

Ryoken said,
Hackintosh is also not harming Apple.. there are some that build it and don't get a mac, but there's a lot of people who only have ever had PC's that use it, get a taste, then DO get a Mac..

Exactly what I did. I built a hackintosh in, I think, Jan '13 and ran it for about 8 months. It worked great and I decided I really liked OSX, but it was occasionally unpredictable and every time a new update came out I got nervous about having to put drivers back on, etc. So used is at the excuse I needed to not only ditch my desktop PC and switch to a laptop, but to make it a Mac at the same time.

Have not had a single regret. Best computer I've ever owned.

One thing I suggest would be to check out the numbers on the Apple website - specifically 2Q 2014 compared to 2Q 2013 - interesting reading such as the 5% growth of Mac, the rapid decline of iPod sales and the increase in units sold in terms of iPhone which is above the iPod decline and one could argue that some might have opted for an iPhone instead of an iPad.

Also, lets keep in mind that it was over 5 years ago when Steve Jobs gave shareholders/investors a warning that margins were going to take a hit in the future - if shareholders/investors want to ignore what Steve said and then what Tim said then I don't know why such people are complaining in the first place.

TheShark said,
Why is it interesting, it's all pretty predictable really; as even you pointed out yourself.

Too bad the over paid analysts seemed to have over looked it.

I love this. Tim Cook bashes Microsoft for not releasing Office for iOS sooner, yet in the same conference call says that Apple isn't concerned about being first, just about being right.

Hey Timmy, maybe Microsoft wanted to make sure they got it right before releasing it and not necessarily first.

Hurmoth said,
I love this. Tim Cook bashes Microsoft for not releasing Office for iOS sooner, yet in the same conference call says that Apple isn't concerned about being first, just about being right.

Hey Timmy, maybe Microsoft wanted to make sure they got it right before releasing it and not necessarily first.


I think it was more of the fact Microsoft can't compete with apple tablet market and need to release office on different platforms.

Sorry, but if it takes Microsoft that long to get it right, they have some serious overhead and are in need of some serious reorganization. I understand big companies can't exactly move at the drop of a dime, but come on.

I think the fact that they wanted to take their shot at creating tablets is what hurt them. I respect them for their competitive attitude with the Surface and all (hell, I own one), but it makes me cringe that they would hold back on delivering quality goods to try and give themselves a boost when they could have easily been making a great profit this whole time.

Lead by example and show people the level of quality you bring to the table.

They started work on it late in the hope that they could compete with the Surface line first. It has taken (is taking) too long to make Windows totally tablet friendly and so they've churned out Office in a couple of years. It is better than iWork or any other Office application on the iPad. To me that says they got caught out, but they have re-organised well and are making the best of a bad situation.

A possible solution could be to give iPads an expiry date. Two years and then you must buy a new one. /s

Edited by 68k, Apr 24 2014, 2:44am :

Predictable. Unless they add some seriously new functionality it's hard to justify buying new tablets. Pretty much everyone who wants one already has one that works fine. Same thing happened with computers.

You'd be surprised at how many people upgrade their tablets every 1-2 years. This is not the Surface. Resale value on Apple devices is amazing. I sold an iPad 2 on eBay late last year for $400. I sold an iPad 4 32GB for $525. With the cash I turned around and bought the latest and greatest. It's a cycle many Apple users share. You don't lose that much money when upgrading yearly. In fact, you can break even in most cases.

JHBrown said,
You'd be surprised at how many people upgrade their tablets every 1-2 years. This is not the Surface.


The numbers don't seem to be supporting the idea that a majority of users are buying a new tablet every year or two. Specifically looking at Apple, it seems like there is a drop in demand for the latest and greatest, indicating not everyone does the trade in shuffle.

Same thing is happening to smartphones. As the majority of general cell phone users pick up smartphones, the majority of smartphone users will become the average user, which holds onto a phone for much longer then the enthusiastic core consumer.

Plus, a jab at the Surface? Oh you guys :laugh:

JHBrown said,
You'd be surprised at how many people upgrade their tablets every 1-2 years. This is not the Surface. Resale value on Apple devices is amazing...
The only reason the iDevices appear to depreciate so little is because it's a smaller percentage of their total purchase price. The thing is, where a Nexus may lose 100% of its value over 2 years where an iPad only loses 40% of its value, they've both lost $200 worth of value. Just, one started off exorbitantly high.

trooper11 said,
Plus, a jab at the Surface? Oh you guys :laugh:

I think he was saying that the Surface is so superior, that you don't need to upgrade it every year or two to be able to access Facebook.

elenarie said,

I think he was saying that the Surface is so superior, that you don't need to upgrade it every year or two to be able to access Facebook.

There we go. You read my post perfectly. :-)

JHBrown said,
You'd be surprised at how many people upgrade their tablets every 1-2 years. This is not the Surface. Resale value on Apple devices is amazing. I sold an iPad 2 on eBay late last year for $400. I sold an iPad 4 32GB for $525. With the cash I turned around and bought the latest and greatest. It's a cycle many Apple users share. You don't lose that much money when upgrading yearly. In fact, you can break even in most cases.

I'm going to have to call BS on you breaking even reselling a standard year old electronic ANYTHING. Why would anyone pay you $500 for last year's iPad when they can buy this year's iPad for $500? I hope you're not comparing the selling price of a 32GB or 64GB iPad with the purchase price of a new 16GB iPad.

Plus say you actually find an idiot to buy your year-old iPad for $500 on eBay when they could buy the new one for the same price. Well eBay gets 10%, PayPal gets 3% and shipping costs around $20 for insured + signature which you need for protection. That'll net you $415. And that's if you're able to find an idiot to pay MSRP on a used year-old iPad. To really break even on eBay you need some fool to pay $100 more than MSRP.

mrp04 said,

I'm going to have to call BS on you breaking even reselling a standard year old electronic ANYTHING. Why would anyone pay you $500 for last year's iPad when they can buy this year's iPad for $500? I hope you're not comparing the selling price of a 32GB or 64GB iPad with the purchase price of a new 16GB iPad.

Plus say you actually find an idiot to buy your year-old iPad for $500 on eBay when they could buy the new one for the same price. Well eBay gets 10%, PayPal gets 3% and shipping costs around $20 for insured + signature which you need for protection. That'll net you $415. And that's if you're able to find an idiot to pay MSRP on a used year-old iPad. To really break even on eBay you need some fool to pay $100 more than MSRP.

Truth hurts I guess. I would never call someone an idiot for spending their money how they darn well please. I just took a look at eBay and Craigslist and the iPad 4's are still going for $400. Guess there's a bunch of idiots out there'

mrp04 said,

I'm going to have to call BS on you breaking even reselling a standard year old electronic ANYTHING. Why would anyone pay you $500 for last year's iPad when they can buy this year's iPad for $500? I hope you're not comparing the selling price of a 32GB or 64GB iPad with the purchase price of a new 16GB iPad.

Plus say you actually find an idiot to buy your year-old iPad for $500 on eBay when they could buy the new one for the same price. Well eBay gets 10%, PayPal gets 3% and shipping costs around $20 for insured + signature which you need for protection. That'll net you $415. And that's if you're able to find an idiot to pay MSRP on a used year-old iPad. To really break even on eBay you need some fool to pay $100 more than MSRP.

I agree ^

Last year I did a comparison of resale values. Myself owned an iphone 5 32gb, and my wife had the 16gb version. I'm terrible at buying and selling stuff. Anyway, apples resale value in percentages terms is one of the worst for losing money.

The Nexus 4 held its value the most out of everything I sold. Surprisingly my 3 month old 15" Retina Macbook Pro lost a huge amount!!!!!

FloatingFatMan said,
Finding idiots on eBay is -really- easy... :p
It's eBay. I'm not sure why mrp04 is surprised at the high resale value. I've been doing this for years. I sold a 2 year old Sager laptop for $1200. I originally payed $1900. Not bad if you ask me.

JHBrown said,
This pretty much summed it up and all I need to do is quote you.

lol, you have no idea. Yesterday I bought titanfall, and I know damn well I'll never play it. Just can't help myself.

JHBrown said,
...Guess there's a bunch of idiots out there'

Yes. It has been the case since the beginning of time. But especially in this day and age, idiots thrive.

JHBrown said,
You'd be surprised at how many people upgrade their tablets every 1-2 years. This is not the Surface. Resale value on Apple devices is amazing. I sold an iPad 2 on eBay late last year for $400. I sold an iPad 4 32GB for $525. With the cash I turned around and bought the latest and greatest. It's a cycle many Apple users share. You don't lose that much money when upgrading yearly. In fact, you can break even in most cases.

LOL, it's not because it doesn't depreciate in value. It's because Apple doesn't lower it prices ever. They rather run out of stock on it and sale the news one for a few bucks more. Apple tends to stop production close to the release of the new iPad or iPhone and recall remaining previous gen product.

JHBrown said,
It's eBay. I'm not sure why mrp04 is surprised at the high resale value. I've been doing this for years. I sold a 2 year old Sager laptop for $1200. I originally payed $1900. Not bad if you ask me.

High resale value doesn't mean it will sell for the same price as a brand new one. People don't do that.

I just checked eBay. There are plenty of LIKE NEW MINT CONDITION iPad air 16GB models available for $435. The replacement isn't out yet. $435 is $65 less than $500. Then subtract eBay/PayPal fees and shipping and you have $360. That's a $140 loss which is pretty far away from breaking even.

xankazo said,

Yes. It has been the case since the beginning of time. But especially in this day and age, idiots thrive.

There are plenty of idiots, but it takes a truly remarkable idiot to pay $500 for a used iPad when they can get it brand new for the same price, or even a newer generation for the same price.

I think JHBrown might be selling 32GB iPads for $500 and considering it breaking even because there are 16GB iPads available for $500. Logic doesn't quite add up though.

JHBrown said,
Truth hurts I guess. I would never call someone an idiot for spending their money how they darn well please. I just took a look at eBay and Craigslist and the iPad 4's are still going for $400. Guess there's a bunch of idiots out there'

It's not the truth, you're fabricating stories or exaggerating.

I would call them idiots for paying too much for something. Heck I laugh when some idiot pays too much for something I'm selling on eBay, but no one has ever paid MSRP for a used electronic device I was selling. The closest to that I've ever gotten is someone paying $500 for my Nexus One a few months after I purchased it for $570 after tax. There was no way to avoid tax since the only place to buy it was from Google and they charged tax to everyone.

Edited by mrp04, Apr 24 2014, 4:57pm :

JHBrown said,
You'd be surprised at how many people upgrade their tablets every 1-2 years. This is not the Surface. Resale value on Apple devices is amazing. I sold an iPad 2 on eBay late last year for $400. I sold an iPad 4 32GB for $525. With the cash I turned around and bought the latest and greatest. It's a cycle many Apple users share. You don't lose that much money when upgrading yearly. In fact, you can break even in most cases.

They do occasionally break this cycle. When I bought a powerbook 12" in 2006, I paid £1300 for it and got back £500 for it a year and a half later.

We all know why >_>