Tablet Shipments Declined for the First Time Since 2010, Apple Still Leads the Pack

[RaduTyrsina]

According to fresh intel coming fromIDC, tablet sales have declined for the first time on a year-over-year basis since 2010. Apple shipped 21.4 million iPads in Q4, 2014 and remained the number one tablet vendor in the market, but its total shipments declined by 4.6 percent from the same period in 2013.

Here's what the research firm said about Apple’s strategy:

"Apple's efforts to maintain iPad momentum have fallen flat so far as the latest generation of the iPad Air and mini offer very minimalistic upgrades over their previous versions. Cannibalization at the bottom from the iPhone and at the top from the Mac appear to be a serious issue for the iPad."

Samsung was the second largest tablet vendor with a market share of 14.5 percent, having shipped 11 million tablets in the last quarter of 2014. On the third, fourth and fifth place we find Lenovo, ASUS and Amazon.

Jitesh Ubrani, Senior Research Analyst, Worldwide Quarterly Tablet Tracker, added his input, saying:

The tablet market is still very top heavy in the sense that it relies mostly on Apple and Samsung to carry the market forward each year. Although Apple expanded its iPad lineup by keeping around older models and offering a lower entry price point of $249, it still wasn't enough to spur iPad sales given the excitement around the launch of the new iPhones. Meanwhile, Samsung's struggles continued as low-cost vendors are quickly proving that mid- to high-priced Android tablets simply aren't cut out for today's tablet market.

However, albeit total tablet shipments declined by 3.2% on a YoY basis, total tablet shipments increased by 4.4 percent to 229.6 million in the last year. IDC expects the overall tablet shipments to further grow in 2015, fueled by consumers' increased interest towards large screen devices and tablets.

Source: IDC

 

[twerppoet]

I don't think Apple is likely to be concerned if iPad sales are being cannibalized by their own, generally more expensive, iPhones and laptops. iPhones have eaten most of the old iPod market, and it has done no harm; the opposite even.

That said, tablets are not going away. While larger iPhones and lighter MacBook Air's have shaved a bit around the edges, there are still compelling use cases for the tablet.

Also, after the first couple of models, the iPad is turning out to have a longer life with consumers. Pretty much everyone felt the need to upgrade from an iPad 1, and a large number upgraded from the iPad 2; but from that point on the need to upgrade every year (or every two years) has become far less compelling.

The iPad (tablet) market is merely finding it's place. I expect it will continue to grow at a much more sedate pace once it's niche is more firmly defined in the consumer's mind.

*sigh* I almost sound like an analyst. If I'd just twist thing in a more negative light (for Apple) I could probably get misquoted somewhere.

 

[s2mikey]

I don't think Apple is likely to be concerned if iPad sales are being cannibalized by their own, generally more expensive, iPhones and laptops. iPhones have eaten most of the old iPod market, and it has done no harm; the opposite even.

That said, tablets are not going away. While larger iPhones and lighter MacBook Air's have shaved a bit around the edges, there are still compelling use cases for the tablet.

Also, after the first couple of models, the iPad is turning out to have a longer life with consumers. Pretty much everyone felt the need to upgrade from an iPad 1, and a large number upgraded from the iPad 2; but from that point on the need to upgrade every year (or every two years) has become far less compelling.

The iPad (tablet) market is merely finding it's place. I expect it will continue to grow at a much more sedate pace once it's niche is more firmly defined in the consumer's mind.

*sigh* I almost sound like an analyst. If I'd just twist thing in a more negative light (for Apple) I could probably get misquoted somewhere.

Twerp, you are dead on. Tablets are used more like a computer versus a phone and the upgrade cycle is much longer. I went from the ipad 2 to the Air which means I skipped two generations and this time around it'll be at least that long. Just no need to get a new tablet every year.

Those phone people though....ugh, they'd upgrade every week if it was possible. The contracts they are on facilitate it sometimes and it's more about the latest and greatest since your phone is much more visible to the public.

Honestly, part of it too is that with each new generation of ipad, the tangible upgrades are less important. So, more reasons not to upgrade.