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Tablet Market Slumps as Buyers Find Alternatives: IDC
Apple maintained its top spot as the tablet leader with 20.3 percent of the market share and shipments of 9.9 million units for the quarter.
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“With shipment volumes slowing over four consecutive quarters, the market appears to be in a transition”.
Samsung (SSNLF) also saw shipments decline as it continues to occupy second place, shipping 7.9 million units during the quarter, while third-place Lenovo (LNVGY) increased shipments 2% to 3.1 million units amid growth in the US and EMEA.
In Q4 2012 Apple held 38.2% market share. There’s simply no denying that the tablet market is losing its momentum and leading vendors are feeling the squeeze. The rankings come at an interesting time in the tablet market as Apple’s iPad sales decline and tablet shipments overall sputter.
The industry is seeing increased interest from vendors in new form factors, with detachable tablets becoming a focus for many, IDC reported.
The IDC estimates there are a few 581.9 million out in the world, but with markets like North America, Western Europe and Asia reaching saturation, it’s unlikely that number will get much higher. With over two-thirds of its tablets being mobile connected, the vendor has been able to appeal to the growing trend of tablets used for voice calling and tablets used in markets with low broadband penetration.
IDC said the tablet market has matured and people aren’t upgrading their slates as fast as they do smartphones. Asus shipped 1.9 million and Huawei shipped 1.8 million units.
Sales of tablets have continued to fall in the third quarter of this year – that’s the fourth quarter in a row showing a decline. The company registered 147.9 percent growth in shipments. It turns out that 75 percent of the tablets it shipped have cellular connectivity.
The tablet sales are expected to further slump in 2016. This is based on another report from DigiTimes, citing sources from integrated chip suppliers. With only $4.3 billion coming from the iPad market, Apple recorded its lowest iPad revenue since at least 1Q2011. Good news is, Orr notes that the slowdown doesn’t necessarily mean the end of the tablet market.
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Global shipments have seen depression because Chinese manufacturers have started turning their attention from tablets to other products, including large screen smart phones and wearables. Tablets are still popular among consumer households and even have a practical objective for many businesses and the education sector. IDC flags the impending launch of the iPad Pro as a potential silver lining for the company as the market shifts towards productivity-enabling devices. This sure gives tablet vendors a reason to shake up the market, get innovative and create a truly competitive landscape.