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Apple's Holiday Sales to Get a Boost From iPad Pro Release

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Apple (AAPL - Free Report) is looking to boost holiday season sales with the recent launch of iPad Pro. The latest device is equipped with new features including Face ID and TrueDepth camera.

The device available in 11-inch and 12.9-inch models is priced from $799 and $999 respectively. iPad Pro is available for online orders from Oct 30 and will be available in stores from Nov 7.

Notably, apart from iPad Pro, Apple unveiled its latest MacBook Air, new Mac Mini and other devices at the launch event in Brooklyn.

A Look at the Features

As the home button is excluded from iPad Pro, users will have to use Face ID feature to securely unlock the device. The feature can also power Animoji, Memoji, and other features like Apple Pay and more.

A12X Bionic, a chip specifically designed for iPad Pro, can quickly process complex computer tasks. Powerful than the company’s iPhone XS and XS Max smartphones, A12X Bionic with next-generation Neural Engine is capable of delivering rich augmented reality (AR) experiences.

Additionally, high speed USB-C connector has replaced the existing Lightning connector to aid swift data transfers, as part of the new features unveiled.

Apple Inc. Revenue (TTM)

Apple Inc. Revenue (TTM) | Apple Inc. Quote

Can New Features Boost Device Sales?

Apple looks to boost iPad sales and engagement levels by introducing features that “help deliver immersive augmented reality, provides unmatched portability and ease of use.”

Apple used to be a dominant player in the EdTech industry on the back of its iPad and Mac computer offerings. However, with the introduction of Alphabet’s (GOOGL - Free Report) lower-priced Chromebook, Apple as well as Microsoft (MSFT - Free Report) began to lose market share.

This led to a decline in both iPad unit sales and revenues. In the last reported quarter Apple sold 11.55 million iPads, down 5% year over year. Revenues (8.9% of sales) of $4.74 billion decreased 5% year over year.

Apple is also facing tough competition in the smartphone market. The company lost its spot to Huawei, which became the second largest smartphone seller in terms of shipment, per latest data from research firm Gartner. South Korean handset maker Samsung retained its top ranking in second-quarter 2018.

To regain its market share and survive intensifying competition, Apple is launching devices with new features and technology, which is expected to catch user attention. Expanding product portfolio base that now comprises iPhone XR, iPhone XS, iPhone XS MaxApple Watch Series 4and new iPads is expected to boost Apple’s sales in the holiday season.

Moreover, iPhone sales, which continue to benefit from higher average selling price (ASP) and loyal customer base, may also see momentum with the release of the latest low priced iPhone XR.

Apple currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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