Full-Year iPad Shipments Falling Below Expectations

Market researchers continue to reduce their annual shipment expectations for Apple's AAPL iPad. According to market intelligence firm TrendForce, Apple will ship a total of 70.5 million iPads by the end of 2013. This is down from TrendForce's previous expectation of 72.1 million units. TrendForce has also reduced its iPad market share expectations to 37 percent (versus 44 percent achieved in 2012). This full-year estimate is a slight improvement over Apple's position during the second quarter, at which time the company commanded 35.5 percent of the global tablet market. When the year began, Apple was expected to ship as many as 100 million tablets. That estimate was reduced to 88 million by the first week of March. At the time, iPad sales were still going strong. During the March quarter, Apple sold 19.5 million iPads -- nearly eight million more units than were sold during the same quarter in 2012. The first-generation iPad Mini is being credited with Apple's success. Related: Apple Sold 12.5 Million iPad Mini Units in Q2 The growth spurt did not last forever, however. iPad sales dropped roughly 20 percent during the June quarter, when Apple sold 14.6 million units. During the same quarter in 2012, Apple sold 17 million units. Before this decline was announced, numerous reports claimed that the iPad Mini -- the leader of Apple tablet sales -- would experience some declines. While it was unclear if lower sales demand was to blame, Apple was expected to ship fewer iPad Mini units. At one point iPad Mini shipments were rumored to be reduced by 30 percent. In June, Quantum International QUAN -- a robots company that now develops iPad cases -- made the bold claim that Apple would defy expectations and ship 300 million tablets in 2013. Others within the industry have been a bit more conservative. In the months and weeks leading up to Apple's highly-anticipated iPad event, rumors claimed that the iPad Mini 2 would be delayed or ship in very limited quantities. The latter rumor seems to be coming true. While Apple announced that the iPad Air will be released on Friday, November 1, the company has not committed to a release date for the iPad Mini with Retina Display. Consumers are currently told that it will arrive "later" in November. Apple is rumored to ship 10 million iPad Air units during the fourth quarter. Shipment numbers for the iPad Mini with Retina Display remain a mystery. Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report. Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ