A lot of very interesting comments and ideas in this thread. Thought I'd share my opinion which counts for very little
Sorry it's long.
I agree to an extent, but perhaps not for the same reasons. I don't think even Apple had a full grasp on the iPad's purpose when they introduced it. It was to serve as the "in between" from phone to computer. Lets face it, although there was a mention of Apple's very niche iWork suite (and a very gimped on at that) productivity was not the main focus. It was music and videos and tons of internet. The marketing remained so for years as sale blew up because it was fresh and new. It was futuristic to use "a piece of glass."
Gradually though users began to to grow accustom to larger phones and on the go devices. Phones and laptops handled the media consumption and the iPad segment began to get squeezed out. Also the high cost of the device eventually caught up with it.
Sure, there were many stories of individuals who created (sometimes elaborate) workarounds to make it a productivity device, but that's not what it was intended for. Once Apple realized this and saw the declining sales they needed a new marketing angle. People just weren't going to pay $500+ dollars to a media device. This is why the new "general media use" iPad starts at $379. Apple is trying to reach the old media audience and entice them with a device better than their phones and still cheap. Then Apple chased the new market with the iPad Pro. You say "they are grudgingly taking baby steps." I want to argue this, but I'm not sure I can. Split view was a given for the Pro, but why wait so long for the iOS 11 features. Yes, they're nice, but not revolutionary. I do agree that they were hoping the new accessories and split view would be mostly enough, but realized they had to push forward.
Apple really only has themselves to blame. They marketed the iPad for so long as one type of device and now trying to shoehorn it into another category that I don't think it was ever intended to be in. I think this relates to the App Store problem below.
Main Point:
I disagree that this shift is mostly from a readjustment - though I think that's part of it. I think Apple is just retroactively responding to the market. I also disagree a bit with the thinking that Apple knows and is okay with (in a sense) the declining sales. I think Apple wants to continue to sell more and more. Also, if Apple is to be believe when they say that iPad is future of computing then they'll want to sell that much more to make sure the next generation is brought up on the iPad. You can change the computing world over night, it has to be gradual.
I think Apple is responding to waning iPad interest by trying to push it into a new category. I agree that they're holding back, but I don't think it's because they don't know what to do or even because they don't want to undercut Mac sales (they do get higher margins, but iPad's are approaching Mac-pricing and they've shown they're not afraid to undercut their own products with new ones), I think the iPad is still haunted by the old method of thinking: a dead simple device where the user interacts solely with content.
Apple is afraid to mess with the underlying foundation of iPad. It almost necessities an iPad Pro-OS where Apple can keep the old ideals on the lower end media devices and embrace a new dynamic on the "Pros," but that would be confusing and cause fragmentation. They are going through growing pains. However, I do think they are trying to do as little as possible to mess with the formula, but not for MacBook sales, but to preserve what is *iPad* in their eyes.
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I agree with you. I don't think Apple wants to see anything other than increases. I also think the entire Pro focus is a retroactive response to push the iPad into a new market. Had the media-focused consumption iPad that Steve sold in 2010 continued selling in record numbers through 2016, I don't think there would be an iPad Pro.
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I think this is one of the biggest issues. Why do people buy certain game consoles or Macs vs PCs? It's the software - the games available, the special applications and tools. Mac's have had amazing tools and some really good exclusive apps. And some apps, like adobe, are cross-platform so users can choose the OS they like the best. If a Mac could only run Apple's current selection of apps I think it would have all but died. The same goes for iPad. Apple marketed this device as a mobile consumption app. They aligned it more closely with the iPhone than the Mac so it got the mobile treatment. It was a race to the bottom with flashy purchases.
Now Apple is trying to push he iPad toward the Mac-line but it can't shake off the repercussions of the past. The App Store still reflect the old mobile world of iPhone apps. There are amazing applications, but when you see a see of FREE or $0.99 apps that $9.99, $19.99, or God-forbit $49.99 app will seem horrendous. Sure, some "pro" users like are on this forum will gladly pay it, but a few hundred $20-$30 purchases (even a few thousand) cannot run a company.
Developers also share some blame. Many big-name apps were brought to iPad at a time where iOS an the hardware just couldn't run them so they released stripped down mobile apps. Developers need to show a full "no shortcuts" application with full functionality if they want users to pay $50, $100, or even $400. I would never pay $400 or even $100 for an iPad app because they always seem to have gimped functionality. If that perception and fact can change, who knows.
