What Does the Slump in iPad Sales Tell Us About the Tablet Market?



The tablet market is booming, and sales have been rising year on year ever since the first devices hit the shelves. However, the market leader in this sector, Apple, have seen shipments of their iPad range slow down dramatically over the past year. Perhaps to call it a “slump” is a bit reactionary, as sales are still strong, they’re just not as strong as once they were. So what does this mean for Apple and the rest of the market now?

The 8% drop in iPad sales year on year to Q2 2014 is an indicator of shifting buying trends, but also reflects the lack of urgency in upgrading to the latest models when new iPads are released. For one thing each refreshed iPad release has seen only incremental improvements that by themselves don’t offer enough of a compelling enough reason to upgrade from the perfectly capable older models.

Why the Tablet Space operates Differently to that of Mobile Phones

Unlike mobile phones which see near constant use all day long, tablets tend to be subject to far less wear and tear. The average iPad user doesn’t keep their device with them all the time, whereas an iPhone will rarely leave your side. As a result the strain placed on a smartphone will inevitably be greater than that of a tablet, and this essentially shortens their lifespan so the upgrade cycle for smartphones is invariably far shorter than for tablets.

In the smartphone market Apple’s market share has been falling year on year, with its biggest competitor in the hardware stakes, Samsung, being the main beneficiary. However when looking at tablet market share we don’t see the same trend. Sure, Samsung tablet sales have risen whilst iPad sales have slowed, but the correlation between the two is nowhere near as striking as it is with the statistics for smartphone market share. Instead what we can clearly see is that whilst Apple remains the biggest single manufacturer of tablets, the market is quickly being overrun by a plethora of “other” manufacturers.

Who is Winning the Tablet War?

Whilst the Android operating system is running away with its share of the market (set to improve on the 62% share reported in 2013), the sheer number of different manufacturers offering 10 inch Android tablets to compete against the iPad has completely saturated the market. Unlike in the mobile space where the market for hardware is dominated by a core of five major players, the tablet market share is spread between a far greater number of firms competing for a piece of this lucrative pie.

The explosion in cheaper, entry level tablet devices offering a decent enough experience at a fraction of the cost of the iPads and top of the range devices from Samsung and Sony etc. has eaten into the market share in a big way, and only looks set to increase yet further. If an own brand generic Android powered device can perform all the basic functions required of it, why spend three or four times as much on a flashy bit of kit with a name that carries a premium?

How do you see the tablet market space changing? Have you any experiences of a cheaper device performing as well as an iPad for your needs? I’d love to know your thoughts. Leave me a comment or get hold of me on Twitter, and be sure to follow me for my latest insights into the world of technology and trends.

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