iPad Momentum Falls Flat as Tablet Market Experiences First Year-Over-Year Decline

MacRumors · Feb 2, 2015

iPad sales slowed in the fourth quarter as the worldwide tablet market experienced its first year-over-year decline since being established in 2010, according to the latest numbers from market research firm IDC. Apple shipped 21.4 million iPads for 28.1% market share in the fourth quarter to maintain a comfortable lead over Samsung, which shipped 11 million tablets for 14.5% market share during the three-month period ending December.

The worldwide tablet market continues to be mainly a two-horse race between Apple and Samsung, with smaller competitors such as Lenovo, Asus and Amazon shipping just 3.7 million, 3 million and 1.7 million tablets respectively during the fourth quarter. IDC says that, despite a year-over-year decline, worldwide tablet shipments increased 4.4% to total 229.6 million units in 2014.

"The tablet market is still very top heavy in the sense that it relies mostly on Apple and Samsung to carry the market forward each year," said Jitesh Ubrani, Senior Research Analyst, Worldwide Quarterly Tablet Tracker. "Although Apple expanded its iPad lineup by keeping around older models and offering a lower entry price point of $249, it still wasn't enough to spur iPad sales given the excitement around the launch of the new iPhones. Meanwhile, Samsung's struggles continued as low-cost vendors are quickly proving that mid- to high-priced Android tablets simply aren't cut out for today's tablet market."

Apple CEO Tim Cook and CFO Luca Maestri cautioned investors during last week's earnings call that iPad sales are unlikely to see a dramatic year-over-year improvement in the near future. Nevertheless, Apple is optimistic about pushing the iPad further into the enterprise through its IBM deal announced last July and is also seeing first-time buyer rates for the iPad as high as 70% in emerging markets such as China.

Article Link: iPad Momentum Falls Flat as Tablet Market Experiences First Year-Over-Year Decline

joshwenke · Feb 2, 2015

Well duh, it's because the iPhones are about as big as the tablets now.

macintologist · Feb 2, 2015

I bought the first gen iPad in 2010, the iPad 3 in 2012, and I just recently bought an iPad Air 2 in 2015. I think Apple should just continue to innovate tablets until they become as good, if not a better alternative to laptops. Unfortunately the iPads until the Air 2 have been underpowered and constantly refresh webpages.

Tankmaze · Feb 2, 2015

Competition is tough. But good for customers as long as the manufacturers innovate.
no 1 wishlist for iPad : split-screen multitasking.

Aluminum213 · Feb 2, 2015

Zero software innovation in YEARS, decline in sales

Who woulda thunk

levitynyc · Feb 2, 2015

Makes sense. People really don't need to upgrade their tablets yearly.

My iPad 3 is still going strong. It's a little sluggish, but I use it mostly for educational purposes for my toddler. It's also used for watching movies.

You also need to factor in that with larger iPhones, the need for a tablet lessens for most people.

Also for the love of God, can we please get split screen multitasking?

I use my MacBook air because I can watch a movie on it with Twitter or email open. It's annoying to have to switch between apps.

zorinlynx · Feb 2, 2015

Honestly I'm not surprised. With my bigger iPhone 6 I find myself picking it up a lot more times that I used to go get the iPad. I always have my phone with me; the iPad not so much. My iPhone 5's screen was too small to use for long periods of time comfortably. iPhone 6 is a lot better. I can't imagine how amazing the 6+ must be, but my pockets would need to be bigger.

When I need an even bigger screen and more functionality, I grab my Macbook; usually the effort involved in grabbing my Macbook is about the same as grabbing my iPad, so the laptop wins nearly every time.

The one place the iPad still wins for me is reading books....but if that's your main use for it there are better, less expensive devices for that.

Mildredop · Feb 2, 2015

Tablets never made sense to me.

Laptop - full blown OS, does everything, fits in a bag
Phone - cut-down OS but fits in your pocket, makes phone calls.

And then there's tablets. Cut down OS but doesn't fit in your pocket, needs to go in your bag, can't make phone calls. They're just a gimmick.

And the Apple Watch will be the next one.

Aluminum213 · Feb 2, 2015

joshwenke said:
Well duh, it's because the iPhones are about as big as the tablets now.

Wrong, and please show me where to buy a 9.7" iPhone

Northgrove · Feb 2, 2015

Shouldn't the news be "Smaller tablet contenders' growth outpacing that of the major ones"?

That tablet growth is slowing down is only half of the truth. It's slowing down, yes. For Apple.

I'm a bit surprised over this. I thought Apple & Samsung had a greater grip on this market.

trainwrecka · Feb 2, 2015

iPhones getting sluggish 1-2 years AFTER you pay a subsidized price? No big deal, you'll just upgrade.

iPads getting sluggish 1-2 years AFTER you pay full price? That's a big deal.

stevedun · Feb 2, 2015

I've had my iPad 2 since 2011. Never felt the need to upgrade it. Now, my 3-year-old has stolen it from me (for moderate, educational use, of course), and while I want an iPad Air 2, I can't justify the purchase. There's just not enough room in that niche between my iPhone and my MBP.

This, I believe, is why sales are plateauing. We don't need to replace them every 2 years like phones. We take good care of them (due to the initial investment) so they are in good shape for hand-me-downs, resales and trade-ins.

There will always be a market for the new, high-end device, but don't expect that all tablet users will jump to upgrade.

Rogifan · Feb 2, 2015

Does anyone besides Apple actually disclose sales figures? If not where does IDC get their figures from?

Traverse · Feb 2, 2015

Not too surprising, the market is approaching saturation. Really, Apple is underutilizing the iPad's potential. WHen I had an Air 2 I was underwhelmed that it did nothing my iPad 3 couldn't except load a game 4 seconds faster.

There is so much iOS optimization to be done.

spiderman0616 · Feb 2, 2015

Tablets are the perfect device for many different things--much better than a phone or laptop in many cases. However, the things they are good at do not require a yearly hardware upgrade, or even a bi-yearly upgrade.

I've never heard an iPad owner say they don't like the device or don't use it. What I HAVE heard a lot of is, "It still works just fine for everything I do. Why would I buy a new one?"

Mtmspa · Feb 2, 2015

Still using my iPad 3 at home and it still works great. I assume it will not be supported by iOS 9 or 10. I will likely buy a Pro if it has more ram and split screen capabilities.

Apple needs some killer features to make the upgrade worth it.

CmdrLaForge · Feb 2, 2015

I am clearly not mainstream. If asked what I would give up first it would be iPhone, iPad, Mac. With the Mac being the last and the iPhone the first.

Joe Rossignol · Feb 2, 2015

Mildredop said:
Tablets never made sense to me.

Laptop - full blown OS, does everything, fits in a bag
Phone - cut-down OS but fits in your pocket, makes phone calls.

And then there's tablets. Cut down OS but doesn't fit in your pocket, needs to go in your bag, can't make phone calls. They're just a gimmick.

And the Apple Watch will be the next one.

I think the Apple Watch is closer to the iPhone in terms of offering a personal experience. If you buy one, you are likely to be wearing it everyday, just like you carry an iPhone in your pocket everyday. I think the iPad is different in the sense that a lot of people do not carry the device around with them at all times. For that reason, I can see the Apple Watch being more of a mainstream product.

Wicked1 · Feb 2, 2015

joshwenke said:
Well duh, it's because the iPhones are about as big as the tablets now.

Yup, just look at all the Phablets out there, just about all MFG are over 4.7" now and some as large as 6.6"

I see the three phones leading the way are iPhone 6 & 6+, and the Samsung Galaxy Note 4, 4.7 and 5.5-5.7

Paradoxally · Feb 2, 2015

Well, when phones are almost as big as iPads, and laptops do much more, this was only natural.

Natzoo · Feb 2, 2015

You know if apple cared about their iPad line they could make it prosperous, like updating the os, like making it new something different. Get rid of the bezel edges and also make a new design.

MacDarcy · Feb 2, 2015

The ipad pro better be able to do something amazing like run OS X and do true multitasking...and not just be a "larger" ipad with extra speakers. That won't help improve sales IMHO.

Paradoxally · Feb 2, 2015

trainwrecka said:
iPhones getting sluggish 1-2 years AFTER you pay a subsidized price? No big deal, you'll just upgrade.

iPads getting sluggish 1-2 years AFTER you pay full price? That's a big deal.

Don't upgrade the software then. My iPad 4 is still on iOS 6, fast as ever. If I had iOS 8 on it it would be slower and full of bugs.

ArtOfWarfare · Feb 2, 2015

Mildredop said:
Tablets never made sense to me.

Laptop - full blown OS, does everything, fits in a bag
Phone - cut-down OS but fits in your pocket, makes phone calls.

And then there's tablets. Cut down OS but doesn't fit in your pocket, needs to go in your bag, can't make phone calls. They're just a gimmick.

And the Apple Watch will be the next one.

I'm with you on tablets being little more than a gimmick, but I feel that the :apple:

Watch has some potential.

Every time you reach into your pocket, pull out your iPhone, glance at something, and put it back, that was a potential use case for the :apple:

Watch.

Glancing at data on the iPhone can be a bit awkward, getting it in/out of your pocket, unlocking it, locking it. That all eats up seconds repeatedly throughout the day.

With an :apple:

Watch, you can skip all that and just rotate your wrist and look at whatever notification or glanceful of information you wanted.

Is that $350+ worth of useful? Probably not. But it gives you an idea of what an :apple:

Watch could do better than an iPhone.

gnasher729 · Feb 2, 2015

Northgrove said:
Shouldn't the news be "Smaller tablet contenders' growth outpacing that of the major ones"?

That tablet growth is slowing down is only half of the truth. It's slowing down, yes. For Apple.

I'm a bit surprised over this. I thought Apple & Samsung had a greater grip on this market.

What really happens: You sell tablets to two kinds of customers. Those who buy their first tablet or buy an additional tablet, and those who buy a tablet to replace an existing one that is broken or not good enough anymore. Well, you really have these two kinds of sales in most markets.

In the case of the iPad, the rate of customers replacing iPads that are broken or not good enough anymore is low. People don't buy a new iPad every time a new fancy iPad is released. My wife's iPad 2 works just fine for her, and she'll buy a new iPad when it breaks. Not a day earlier, not a day later. And that rate of replacing iPads is just low.

It might very well be that customers of these "successful" small manufacturers just have to buy new tablets more often because the old one breaks too often. Might even be software problems that an iPad user could fix by taking it to the Apple Store. However, they also drop the prices and get sales to people who are willing to buy a $99 toy.

iPad Momentum Falls Flat as Tablet Market Experiences First Year-Over-Year Decline

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