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As Apple just released its earnings report for the first quarter of fiscal 2015 year, iPhone sales increased dramatically since the debut of its new product, and accounted for over two-thirds of Apple's revenue. However, Apple are quite worried at a time when they should have been celebrating for this record-breaking earning, because the sales of iPads have seen their sharpest year-over-year decline. The company is now trying to understand the internal and external reasons for this continuing decline. If the reasons can be successfully dig out, the company can change its product in the supposed way to enhance its sale.

Here is more information about the competitive environment in which iPads resides. According to latest released industrial report, Tablet devices are expected to be a key driving forces of demand, and it also represents one of the fastest growing products in the personal computer retailing industry. The industrial outlook for the overall market is pretty rosy, believing that the demand of the tablets will not be saturated in the future five years. In addition to that, it is also worth mentioning that the counterparts of Apple iPads, such as tablets coming from the Samsung and Lenovo, are also eroding the market share. Since there are huge amount of similarities among these existing players in the market, it becomes extremely hard to maintain players’ current positions, let alone to increase sales in this hugely competitive market.

Things might have been worse because of the latest trend to develop smart phones with bigger screen. In accordance with this trend, the competition between mobile phone and tablets might have been even fiercer. Certain portion of consumers are now believing that smart phone with bigger screen can have a lot of similar functions offered by tablets and that the purchase of tablets seems to be less appealing to them than before.

On the basis of all those background information, it is obvious that huge amount of

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