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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