Apple withholds AI features from base iPad to protect premium model sales

Apple’s strategic shift with its latest base iPad reveals a deliberate attempt to preserve premium pricing across its tablet lineup. After years of watching consumers increasingly choose the entry-level model over higher-priced alternatives, Apple has created a clearer differentiation by withholding Apple Intelligence from its most affordable iPad. This product positioning strategy responds directly to market data showing the base iPad’s growing dominance in Apple’s tablet sales mix, forcing consumers who want AI capabilities to spend more on premium models.

The big picture: Apple’s recent base iPad update deliberately omits Apple Intelligence support despite refreshing the entire iPad lineup with AI capabilities, highlighting a strategic move to protect higher-end model sales.

• The base iPad received only modest improvements after an unusually long 2+ year wait between updates.
• Apple made the base iPad the only device in an AI-supported platform that doesn’t actually support Apple Intelligence.
• This strategy creates clearer differentiation between entry-level and premium models in the iPad lineup.

Behind the numbers: CIRP sales data reveals the base iPad has steadily cannibalized Apple’s premium tablet sales over the past five years.

• The entry-level iPad’s share of total iPad sales grew from just 15% in 2021 to 38% by 2024.
• This trend suggests consumers increasingly found the base iPad “good enough” compared to more expensive models in the lineup.
• Apple’s strategy appears designed to reverse this trend by creating more meaningful feature gaps between models.

Why this matters: Apple’s approach to the base iPad reflects tension between maximizing unit sales and preserving premium pricing across its product lineup.

• By withholding Apple Intelligence from its most affordable iPad, Apple creates an incentive for consumers to upgrade to more expensive models.
• This product strategy mirrors approaches seen in other Apple product lines where certain flagship features remain exclusive to higher-priced options.

Recent iPad portfolio changes: Apple has significantly refreshed its entire iPad lineup over the past year with multiple updates.

• The iPad Pro received a major upgrade with the M4 chip, an improved display, and a new Magic Keyboard.
• The iPad mini was updated with the Apple Intelligence-capable A17 Pro chip and Apple Pencil Pro support.
• The iPad Air line expanded to include a new 13-inch size option and has received two updates.