Tablet Buyers Waiting For New iPadsTablet Buyers Waiting For New iPads
The tablet market slowed in Q2 with no new iPads to drive sales, says IDC. But overall outlook is positive for many players, including Windows 8.
Tablet Buying Demystified: 10 Tips
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Tablet Buying Demystified: 10 Tips
After continuing its rapid expansion for most of the last year, the tablet market finally began to slow down in the second quarter of 2013, according to the latest data from research firm IDC.
The new research indicates that worldwide tablet shipments were up almost 60% year-over-year but Q2 results were nonetheless down nearly 10% relative to the first quarter. In a statement, IDC research director Tom Mainelli said the market slowed because, unlike in years past, Apple didn't release a new iPad model during Q2. IDC estimated that 45.1 million units were shipped during the quarter.
Mainelli predicted that by the end of the year, new products from Apple, Amazon, and others will drive impressive growth.
[ Will a Surface Pro price cut entice back-to-school shoppers? See Microsoft Surface Pro Price Drops $100. ]
As Mainelli's statements might imply, Apple remained the top tablet vendor, with 14.6 million units shipped in the quarter. Still, the report was a mixed bag for Apple: Though both new iPads and iOS 7 are expected to galvanize sales later this year, IDC noted that Apple's Q2 shipment tally was lower than anticipated and that Apple shipped almost 5 million more iPads in Q1.
Apple's iPads aggregately accounted for 32.4% of all shipments. The devices continue to be the most popular single product line, but their market share has been significantly affected because low-cost Android tablets have aggregately risen in popularity faster than the most recent iPads. IDC said that Apple's market share for the quarter was 32.4%, which is only a little more than half of the 60.3% it commanded in Q2 of last year.
Samsung was second, with 8.1 million shipments, down from 8.6 million in the first quarter. Despite the small decline, Samsung almost quadrupled its year-over-year output. It claimed 18% of all shipments, up from 7.6% a year ago.
In third place, Asus also suffered quarter-over-quarter drops. Still, it expanded its year-over-year market share from 3.3% to 4.5%.
Lenovo, which has risen meteorically to become the world's top PC maker, was in fourth place but made the best progress of any major vendor in Q2. The company shipped 1.5 million tablets, crossing the million-shipment threshold for the first time, and was up a massive 313.9% year-over-year.
Acer also posted encouraging gains. Its 1.4 million tablet shipments were up 35.4% relative to last quarter, and up 247.9% compared to the same period last year. In addition to revealing a slight lull in the tablet market, IDC's data also shows how various platforms are developing.
Android devices accounted for 28.2 million shipments during the quarter, or 62.6% of the market. Shipments were up almost 164% relative to last year, when the OS held 38% of the market.
As noted, Apple lost substantial market share. Later this year the company is expected to release new iPad models, including a version of the relatively inexpensive iPad Mini that features a Retina display. The company will also debut iOS 7, which includes the most substantial redesign of the UI since the OS was introduced.
Still, the iPad Mini will face increased competition, such as the recently released Google Nexus 7. In Q1, IDC attributed the tablet market's continued growth partly to the popularity of smaller tablets such as the iPad Mini. Among current mini tablets, the $199 Nexus 7 offers the best value, with features that include a Retina-level screen.
Apple products command a great deal of loyalty, but with compelling Android options such as the Nexus 7 coming in at two-thirds the cost, iOS's market share will continue to face challenges.
The news isn't all bleak for Apple, though. It continues to enjoy better profit margins than other tablet makers, and iOS is still a top priority for developers.
Windows tablets accounted for 4% of all shipments. Among desktop users, Windows 8 controls 5.4% of the market, according to the most recent data from Web tracking firm Net Applications.
Ryan Reith, IDC's program manager for mobility tracker programs, noted in the firm's statement that Microsoft-fueled products are starting to make notable progress into the market. Indeed, with Windows 8.1 and a slew of low-cost devices coming in the next several months, Microsoft's share of the tablet market will almost certainly expand. When a product starts from such a modest place, however, growth isn't difficult. Whether Microsoft can gain enough to compete with the leaders is still unknown. Achieving 10% of tablet shipments by the end of the year would represent rapid growth, for instance, but it would still make Windows 8 an also-ran.
IDC found that Windows RT barely registered a blip on the tablet market, meanwhile, with .5% of the all shipments. This isn't surprising, given that Microsoft CEO Steve Ballmer has admitted overestimating demand. The company hopes to boost adoption of both Windows 8 and Windows RT with recent price cuts to its Surface RT and Surface Pro tablets.
At the end of July, research firm Strategy Analytics released its own estimates for Q2 tablet shipments. To an extent, the earlier report's findings differ from those released by IDC. Strategy Analytics estimated a marginally higher market share for Android and marginally lower market share for iOS, for example.
Still, both reports suggest the same general trends: a slight lull in the market while consumers wait for new devices, particularly the next iPad; the continued rise of the Android ecosystem; and modest signs of life for Windows 8.
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