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Why is the tablet market tanking?

Daniel Nenni

Admin
Staff member
It was mentioned on the Apple call, everybody is talking about it, and here is a graphic that sums it up nicely. The question is why?

its-not-just-the-ipad--the-entire-tablet-market-is-in-decline.jpg
 
I don't think I would have purchased a tablet but SemiWiki gave me one when the site first started in 2011 I think. It's an iPad2 and I use it all of the time. It's built like a tank and rarely needs charging. I just downloaded the latest iOs 9 and it is starting to slow down so I may buy a new one. I also had an Amazon tablet but it was too small and NOT built like a tank.

So yes they do not break and who needs a 7" tablet when we have bigger phones now? The new iPad Pro looks interesting since it is bigger. I'm seriously considering it for a luxury Christmas gift type thing. I'm going to need to touch one first since I read books on it and comfort is key.
 
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For me as a blogger I place a high value on touch typing, so the first accessory I had to buy with my iPad was a Logitech keyboard so that I could write as fast as I think. The virtual keyboard is a novelty, but way too slow for blogging or composing email messages.

Tablets have lots of competition in phablets, laptops and 2-in-1s, so the market is changing according to the whim of consumers and businesses.
 
Despite all Apple efforts to pretend that the tablets are more than just consumption devices (with few exceptions) they really are just that. And for consumption devices (TV would be a good example) "good enough" principle rules. As soon as the tablets reached the proper screen resolution, UI responsiveness and video streaming performance (YouTube, Netflix) people stopped buying new models unless their tablets break. I think iPad Pro will not change anything here and neither will the gigantic (18") new tablet from Samsung.
 
Personally I made a lot of use of my iPad2, and it was a lot more then merely a passive consumption device. I will definitely get the iPad Pro as the iOS updates (starting from iOS 5 and now 9.1) are making the device almost not useable. However, to answer your question. I think the main reason for the decline in tablets segment growth is that they haven't attracted enough innovation in daily life business like the smartphones did. For example the smartphones' location allowed a huge location related startups to innovate and transform across many industries, if there were more efforts with the development of tablets that were aiming at apps that would suit education, enterprise, trades professional in a completely new and great way, people would not be able to live without them. That is not the case now, the tablet manufacturers (including Apple) haven't yet figured how to go about that device. I bet if Jobs was still alive we'd be seeing a completely transformed education system by now. 5 years into the post PC era with good leadership it is only natural that we would actually be in the post PC era, but, we're still in some mixed mobile-apps/PC world.
 
I think it's possibly due to 2in1s like the Lenova Miix3 being available so cheaply that a tablet and add-on keyboard costs more. Plus as its a PC it's totally compatible with real work
 
I agree, my iPad2 is dog slow and now has a crack in the glass so I will get an iPad Pro. It lasted 4 years so that is not a bad run for a consumer electronics device. The tablet market was over hyped is all. I'm not sure about 2-1 ones but the larger phones will definitely continue to hit the tablet market.
 
Because I have two tablets and have not bought a single one, I get old ones from a friend. I think I haven an iPad 3 and a Galaxy Tab, the iPad seems as if it will not run out of steam until I try to stream 4k from it, which I wont. I think Apple&Co needs to push more 4k-content combined with capable HW if they wanna sell more pads. (With capable HW I mean the Pad in combination with plug in projectors/screens/home cinema solutions.)
 
Another interesting chart:

bii%20tablet%20shipments%203q15.png


The global tablet market saw its fourth consecutive quarter of declining shipments in Q3 2015. Worldwide shipments declined ~12% year-over-year (YoY) in the quarter to 48.7 million tablets, according to new data from the IDC.

  • The 48.7 million tablets shipped in Q3 2015 marks a considerable slowdown from the ~55 million shipped in the same quarter of 2014.
  • This quarter's decline represents a full year of negative tablet shipments growth. The tablet market experienced its first-ever quarter of YoY decline during last year's holiday season following 14 quarters of double- and- triple-digit growth.
  • Of the legacy top 5 vendors by shipments, only Lenovo managed to see YoY growth. Shipments of Lenovo tablets grew ~1% YoY.
  • Huawei had a huge quarter, surging into the top 5 with 1.8 million tablet shipments, up 157% from the 700,000 it shipped in Q3 2014.
  • Industry leaders Apple and Samsung saw continued decline. Apple's 9.8 million tablet shipments was its lowest since Q2 2011 and represented YoY decline of 13%. Samsung came in at around 8 million shipments, which was a slight improvement from the 7.6 million it shipped in the previous quarter but a 19% decline YoY.
 
I have two Kindle Fires and 3 iPad, but my most recent tablet purchase was 3 years ago. I yield to temptation easily: my Kindle Fires were bought for nothing more interesting than reading color magazines and watching (free) Prime video - hardly ground-breaking user experience. But I simply have not been tempted THAT MUCH ever since; not by the newer Kindle Fires ("tricked me twice shame on me..."), and not by iPads.

I only need a single justification for a new iPad - if it's good for MOOC (could have been done), or a better interactive platform with my kids (could have been done, too), or if there were simply more apps like the high-production-value products like UK's TouchPress - anything other than getting a bigger phone screen, I would have loved to splash. But ......
 
Another thing: here is an unscientific, anecdotal street/public place/ metro transportation perspective in major Chinese cities - sporting an iPad, or any tablet, for that matter, seems to have ceased to be cool, while the latest iPhone still gets the job done :).

My recollection of the most recent 3 spotting of a tablet: at my barber, at a mediocre restaurant, and in the office of a community office while waiting to pick up my rental receipts. Somehow the tide has turned. Or the "faddist police" has started shooting.
 
That article makes sense, the iPhone 6+ with the 5.5" display is big enough that many consumers don't need a tablet. My 14 year old son likes gaming on the iPad and texting his friends on the iPhone.

On longevity our first iPad has a cracked screen, however the 7" ASUS tablet screen is still pristine and is the same vintage.
 
Great article:

Solving the mysterious failure of Apple's iPad

The remaining mystery is why anyone is concerned that Apple isn't making enough money, when it's earning virtually all the profits in PCs, phones and tablets.


A somewhat biased article with comments such as "Windows has never been less important as a platform than it is today". Windows still underpins our whole industry in design, marketing and sales, as well as much content creation and delivery, even if the servers themselves run Linux and the content usage runs Android or to a lessor extent iOS.

But I agree in wondering why investors have concerns about Apple. They seem more than good enough at making money on anything they do.
 
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