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Ahead of the launch of its refreshed iPad lineup, Apple Inc. (AAPL - Analyst Report) is seeing weaker iPad sales. The company will be unveiling the revamped version of its new iPad during an event in San Francisco on Oct 22. Though this much-awaited event has set the rumor mills rolling on the possible upgrades, we do not expect the refreshed offerings to be radically different.

The new iPad is expected to be slimmer and will likely be equipped with a fingerprint sensor. The company took a decision to revamp its iPad, since it witnessed a slump in iPad sales during the Jun 2013 quarter.

 iPad sales dipped 27% year over year to reach $6.3 billion. Moreover, as per IDC, Apple’s market share in the tablet segment also took a beating, which now stands at 32%, declining from 60% in the prior year quarter.

Moreover, Apple is also facing a tough challenge in China, where home grown competitors are snatching away market share from Apple. Per IDC, Apple’s tablet market share in China dipped to 28.0% during the second quarter of 2013, declining from the initial level of 50%.The research firm also stated that almost 46% of tablets imported by China were made by other smaller players in the sector, often using the Android operating system.

Sales of iPads could also have been affected by consumers that preferred to wait for the newer versions instead of investing in the existing ones.

Meanwhile, competitors like Samsung, Acer and Lenovo witnessed a major jump in sales compared to the previous year.

Apple is also expected to rollout an updated version of the iPad mini at the event. This category of tablets constitutes models such as iPad Mini, Amazon (AMZN - Analyst Report) Kindle Fire and Google Nexus 7, which are likely to pose stiff competition..

Apple has a Zacks Rank #2 (Buy).

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