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October 01, 2014

Apple Paints the iPad Gold to Attract Customers

This week Apple announced that it will now offer a gold color option for its full-size iPads. The new versions of the iPad are anticipated to be unveiled sometime this month. The product will include gold as a color choice for the metal cover, adding to the silver and gray available for the iPad Air. This color palette is similar to the iPhone 5s—and judging by the consumer craze surrounding the original introduction of a gold option, it will no doubt be popular this time too. The move is an effort to boost sales in a category that has posted declining shipments this year, according to people familiar with the plans.

iPad sales have declined for the past two quarters after soaring from $5 billion when the product was introduced in 2010 to $30 billion in 2012. Last year, iPad sales produced $32 billion according to Bloomberg. Instead of iPads, consumers prefer iPhones with larger screens like Apple's new iPhone Plus, which has a 5.5 inch screen. The new model will have a 12.9-inch screen, making it more suitable and user-friendly.  

“Apple has used color as a feature to increase sales of products many times in the past, starting with the introduction of candy-colored iMacs in 1999. The strategy has resulted in varied levels of success. Sales were disappointing for the iPhone 5c, a lower-end model introduced in 2013 that came in a range of bright colors,” said RBC Capital Markets analyst Amit Daryanani.

Introducing larger iPad would appeal to new types of customers, particularly business people. The larger screen has become a trend in the industry and a preferable option for most customers. The golden color option also attracts those looking for a model that is luxurious and sophisticated. The highly anticipated device won’t be introduced until next year. 

Edited by Alisen Downey

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