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During the quarterly Apple earnings call, Apple CEO Tim Cook commented on the decline in iPad revenue, pointing out that supply constraints have had an effect on sales. He asserted that demand for iPad, and specifically the new iPad Air 5 with M1 processor, was still strong.
Every other category Apple provides data for had an increase in revenue overall. While Apple says supply chains were at fault, other issues could include lower demand in tablets now that COVID lockdowns have ended or potential customers being steered towards the Apple Silicon-powered Macs.