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iPad Tablet Shakeup and How it Impacts Car Dealers

By Eric Miltsch on Jan 18, 2013

 

​Sharp reported today they have stopped nearly all production of Apple's iPad screen - the 9.7-inch version. Initial reaction by the industry is that this is a direct result of a lack of demand for the larger sizes and due to an increase in demand for their newest tablet, the iPad mini. 
 
Production began dropping late in the fourth quarter in their Japanese plant. Additional sources have confirmed Sharp stopped shipping these screen panels; the levels of inventory at the plant is unconfirmed, it is speculated to be very small at this point. Both Sharp and Apple refused to provide inventory counts to Reuters when asked for comments. 

Additional possibilities of the stop in production range from a seasonal drop in consumer demand, a possible change in panel suppliers, the change in demand towards the new iPad mini or even the possibility of an update on the panel design. (Can anyone say 3D screens?) 
 
Another estimate, from Macquarie Research, claims that total iPad shipments will drop as much as 40% - dropping down to 8 million iPads, from 13 million last quarter. 

Interesting to note, the drop in demand has not had an effect on demand at the other manufacturers, which is also adding to the confusion surrounding the speculation for the stoppage. Clouding the issue even more is the fundamental change in the health of Sharp as well (They lost nearly $6 billion last year alone). Sources from Samsung say that their production schedule and inventory counts haven't changed and that Apple hasn't changed anything with their relationship. 
 
Investors have seen this activity as a possible indication of a reduced demand for Apple products and have pushed the stock below $500 for the first time in the past 12 months. 
 
How does this impact dealers? 
 
This is a another sign of how important the tablet market is to consumers. Regardless of the net amount shipped - 8 million iPads for this quarters is still a massive number. Plus, consider the amount of iPad mini's and smaller tablet versions being shipped from competitor's brands. The change in user behavior is happening right in front of our eyes. 
 
Two main areas I'm watching develop as tablets take over our culture: 
  1. How does your dealership website look and perform on an iPad mini, or any other tablet? Are the pages rendering fully, are the submission forms functioning correctly and is it easy to search and select vehicle in a touch environment vs. vs. using a touch pad or a mouse. Work with your website providers to make sure your site navigation isn't difficult to use. EX: Simple call to action buttons that let the user get to the content they want in one click is much easier than traditional drop down menus with multiple lower level choices. TIP: Check your analytics to find out exactly which devices are being used to access your site - go back in history to find any trends. 
  2. How does this shift in usage impact your mobility work flow process? Many vendors provide slick tablet solutions to help make selling a car, connecting with your customer base and also letting customers shop for a car become much easier. TIP: Check the DrivingSales Vendor Ratings and Reviews for companies offering mobile work flow solutions. 
 
How do you see the tablet revolution changing the industry? 

 

Comments

A possible area of opportunity I see are all of the people who bring in their tablets or laptops to read from while they wait on their vehicles being serviced. How could we be enhancing their experience?
I liked your point about constantly testing out your website from multiple devices, as an inch or two can make a huge difference in how a site feels or performs.
If this does in fact mean the death of the "big" ipad, I'm a little sad about this news because I love the size of my 3rd generation iPad. I just recently got comfortable typing on this thing, too! :-)

January 21st

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