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Apple's iPad Tops Worldwide Tablet Market in 2Q11 with 68% of Shipments
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I don't buy things based on what other people think of me. I buy things based on what my needs and wants are.
But good of you to admit it
I can't imagine there's 32% of the others. I guess I just don't see them in use around me or while I travel.
Please clarify what you think they meant.
Apple reports any device which has been shipped as "sold". As they officially state in their Securities and Exchange Commission filing:
Apple's actual 2Q11 (what they call 3Q) earnings report wording was the following:
So actually, they sold as many iPads as they wanted to... but not every one they have made. They were still holding onto a million in stock available to dealers just in case there's a production problem or increase in demand.
As always, there is never any mention of end user sales.
That doesn't mean they're not selling well. It just means it's incorrect to think only other companies report shipments, and Apple does not.
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Except that Apple does occasionally report their channel inventory, which seems to remain consistent from quarter to quarter. If channel inventory is similar at the beginning and end of the quarter, than shipped = sold.
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Again, from the numbers you posted, iPads shipped - 200,000 = iPads sold.
Exactly. I know one person who has an iPad, using it at home. One friend had an iPhone, but sold it. Meanwhile, EVERYONE around me who used to have a high-end N-Series or E-Series Nokia in the past, switched to high-end Android device. Desires and Galaxies mostly. I think a lot of people on this forum don't realize how US-centric Apple really is, and that the situation is quite different around the world.
So, because you see them, that means they're selling in the same numbers? What if the iPad shelves are restocked thrice daily and the Android ones never need restocking?
That article talks about sales to actual consumers versus shipments. At that time Apple had 75% of shipments with over 90% of sales. They probably still have over 90% of sales (though HP's fire sale will put a dent in that in the next quarter numbers). The sales-to-end-users number is problematic. The best way I have seen to estimate that is by using Android's own developer data. Gruber posted an article in July 2011 that tries to calculate this based on Honeycomb adoption and Android screen size statistics published to Android developers by Google.
Certainly Apple's percentage of shipments have decreased (from 75%) but that is simply because competitors are finally shipping products. Apple's user adoption percentage will only decrease once those competitors start selling more tablets. Like I said, the HP fire sale will put a dent in Apple's share (briefly), but the biggest dent will may come in 2012 or 2013 when Windows 8 ships and you have an entire community of PC-loving customers buying up Windows 8 tablets. Whether or not Windows 8 continues to thrive after the initial hit depends on Microsoft's execution of their extremely lofty goals. If they pull it off, it would mean something really awesome, but the early builds make me skeptical of the "desktop" being an app or about running the "desktop" on an ARM processor since they only demo'd Core i5 units which doubled as space heaters with loud fans (can't imagine curling up in bed with that and reading while my wife sleeps).
As far as Android goes on the tablet, it is certainly functional, but seems to be lacking in the "desirable" category which in turn is hindering tablet app production. A relatively smaller percentage of Android users are looking to fork over money for a tablet -- most are the same kind of person that would prefer a laptop over a tablet. My brother tried out the new MacBook Air at Best Buy with Lion and said the experience with full screen mode and gestures was like having an iPad with a faster processor and a keyboard. Further, because of the number of Android tablet options no one Android manufacturer is getting a large enough share of the pie to experience some economies of scale.
That would not be good, but Apple tends to push the envelope a bit more than Microsoft, though being the biggest guy on the black can eventually make you lazy. What would also be bad for Apple is government regulation stepping in -- something they don't want. Apple needs a viable competitor in the tablet space within the next couple of years. If the market turns out like iPod, then Apple is going to have to be much friendlier to competitors like Amazon and Google and Microsoft to avoid anti-trust actions.
Wrong - Europe has a lot a different countries and I have to say that here in Denmark iPhones and iPads are all over the place. My guess is that looking at coworkers and friends and family over 50% has an iPhone. Some coworkers has Android devices but only a few - the rest has none smartphone devices. I know one guy who had a blackberry, but he also has an iPhone now. I have only seen one none iPad tablet actually owned by a person (an anti Apple guy) and I was not impressed.
If you are lucky you can get an iPad at the retailers, but most of the time you have to wait a week. But they have a lot of dusty alternatives!
They always report their channel inventory, which is constantly increasing along with their sales increase, as they put more into their ready-to-sell inventory just in case.
Yes, as I was saying, the number of iPads sold to dealers. Not all that were made. Not the number sold to end users.
At the same time, I think we all assume that stores sell most of their Apple stock, and it's usually a good assumption.
MacRumors recently had a Gartner report on end user smartphone sales. I believe that Apple had reported 21 million iPhones sold (to dealers, of course) in 2Q. Gartner claimed that something like 19 million were sold to end users. Something like 92% sell-through, which is remarkable.
I'm not sure of the distinction you are trying to make here. If it was shipped, and it's not in the channel, that wouldn't it necessarily be sold to end users?
Apple sold 9.25 million iPads in Q2 2011. The only increased their channel inventory by 200,000 iPads. Doesn't that mean that 9.05 million were sold to end users?
I'd find it hard to believe that Apple increased their channel inventory by 2 million phones one quarter before releasing a new model.
EDIT: Yep. The just went from 5.2 million to 6 million.
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Yeah, considering that analysts are willing to consider devices which amount to a digital picture frame with an OS as tablets to pretend that there is iPad competition, I found the number to be rather high.
Nope. If that were so, then people wouldn't be debating end user sell through for tablets.
The distinction is between:
- what all companies, including Apple, report as "sold" ... meaning counted as revenue, usually because the products have been (or are being) shipped to dealers...
- what the dealers have actually received and sold to end users (which is an unreported value).
That's nothing. For 2Q Apple reported over five million phones in channel inventory. They did a similar build-up with the 3GS just before the iPhone 4 came out.
If nothing else, that should be a huge flag that they probably intend to continue to sell the iPhone 4, just as they continued to sell the 3GS last year as their low priced entry phone.
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You are completely missing the point here. The total number in channel inventory is not the issue. It is the change in channel inventory from the end of the previous quarter to the end of the current quarter that matters. Look at the numbers I provided. It is a simple calculation to determine the number of devices sold to end users from the numbers provided by Apple. It is simply the number of devices shipped minus the change in channel inventory.
For the last quarter, increased channel inventory only counted for 2-3% of iPads and iPhones reported as sold by Apple. Not really significant.
Obviously, channel inventory numbers are used to inflate launch numbers, but after the first quarter or two for Apple, they tend to be negligible.
EDIT: As a counter-examble, a decrease in channel inventory (which tends to happen around launches) means Apple actually sold MORE devices to end users than the number they reported.
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I believe that "channel" does not include Best Buy shelves. Once it is in BB's hands, it is out of the channel. But not necessarily at my house. (probably because I have no iPad)
There's really no industry standard for computing sales to end consumers.
I see iPads almost everywhere. Airports, hotels, gym, little league games, doctor's office, ........everywhere. I understand that it is not the device for everyone, but how can you claim there is no use case. Is your view of the world so arrowly limited to your own needs that you can dismiss millions and millions of satisfied users as being mindless consumers....really seems very arrogant.
The iPad has been great for my family. My wife and I have no need for two full blown computers, but an iPad and Desktop seem to be a great combo for our home use. Why is that so hard to understand? Our old laptop has not left the dock since we bought the iPad. Why do I need to lug around excess capacity and capability when an iPad will do for our needs? Yes, I have an iPhone, but I really prefer the larger screen for email, web, photos, books, games, and other common uses. The iPad is great to take on family trips, and the battery life is amazing.
Really, try to think beyond yourself. Expand your horizons a bit.
12 months on
since I bought my iPad. Use it most days. Great for so many things and doing other web stuff while "watching" tv.
Anyway, having shown it to so many family and friends, it is now interesting to see them buying their own iPads. Just this month, two older male friends and my Mum bought an iPad for themselves.
And it's true, they are now loving it AND talking about getting an Apple as their next PC since "this is all so easy compared to Windows".
iTunes still causes them issues. It's NOT that intuitive the first few times you use it. There are power tricks that casual new users need to be shown to assist them but OVERALL their introduction has been EASY and FUN.
This is what REAL WORLD users want. Apple has nailed it (pretty much). The other OSes and environments haven't.
Android is like the new Linux. It appeals to tech heads.
Microsoft made enough mistakes with Vista and Win7 to some degree. The changes confuse even long term "semi-power" users. The new Win8 doesn't inspire me either from the previews. These "tiles" look dumbed down and just plain insulting. It hides even more of the bits I want to get to - I want to know what I've got where on my PC. Folders worked. (It's one of the few things on the iPad that could be improved - a "proper" file system where various Apps can open, say, PDFs rather than adding them "somewhere" for each App).
Like many others, when traveling, I've only seen iPads being used in airports. Not a single non-iPad. They might be shipping them. They ain't selling 'em
Maybe HP did the smart thing: clearing inventory BEFORE everyone else, even at a loss. I'd like to know who made the "sell for $99" pitch. Sure 50% off would have worked as well and perhaps covered costs. $99 was just a stupid firesale price. It only proved at that price you can sell anything. Even then, people whinge about the OS (which probably needed more dev time) and want to install something else. You can't please some people! Anyway, it's mostly tech heads who knew about the bargain and bought them. The stocks were cleared before the general public heard much.
I'm guessing we will see more tech clearances when the backlog of unsold SHIPPED tablets are left gathering dust for a few months. We already see some discounts on first gen Acer tablets here. And they still don't seem to be selling out quickly as each weekend the same ads are trotted out. Substantial price cuts seem to be the only sales motivator.
More blood letting to come...
since I bought my iPad. Use it most days. Great for so many things and doing other web stuff while "watching" tv.
Anyway, having shown it to so many family and friends, it is now interesting to see them buying their own iPads. Just this month, two older male friends and my Mum bought an iPad for themselves.
And it's true, they are now loving it AND talking about getting an Apple as their next PC since "this is all so easy compared to Windows".
iTunes still causes them issues. It's NOT that intuitive the first few times you use it. There are power tricks that casual new users need to be shown to assist them but OVERALL their introduction has been EASY and FUN.
This is what REAL WORLD users want. Apple has nailed it (pretty much). The other OSes and environments haven't.
Android is like the new Linux. It appeals to tech heads.
Microsoft made enough mistakes with Vista and Win7 to some degree. The changes confuse even long term "semi-power" users. The new Win8 doesn't inspire me either from the previews. These "tiles" look dumbed down and just plain insulting. It hides even more of the bits I want to get to - I want to know what I've got where on my PC. Folders worked. (It's one of the few things on the iPad that could be improved - a "proper" file system where various Apps can open, say, PDFs rather than adding them "somewhere" for each App).
Like many others, when traveling, I've only seen iPads being used in airports. Not a single non-iPad. They might be shipping them. They ain't selling 'em
Maybe HP did the smart thing: clearing inventory BEFORE everyone else, even at a loss. I'd like to know who made the "sell for $99" pitch. Sure 50% off would have worked as well and perhaps covered costs. $99 was just a stupid firesale price. It only proved at that price you can sell anything. Even then, people whinge about the OS (which probably needed more dev time) and want to install something else. You can't please some people! Anyway, it's mostly tech heads who knew about the bargain and bought them. The stocks were cleared before the general public heard much.
I'm guessing we will see more tech clearances when the backlog of unsold SHIPPED tablets are left gathering dust for a few months. We already see some discounts on first gen Acer tablets here. And they still don't seem to be selling out quickly as each weekend the same ads are trotted out. Substantial price cuts seem to be the only sales motivator.
More blood letting to come...
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Shipping Vs Buying
32% android only shipped. that does not count as a buy. Actually IDC forgot add the rest of the story or may be at Google's request that 28% of them are still in the store's inventory collecting dust. fire sale will follow. The 4% bought by some root panaroids.
32% android only shipped. that does not count as a buy. Actually IDC forgot add the rest of the story or may be at Google's request that 28% of them are still in the store's inventory collecting dust. fire sale will follow. The 4% bought by some root panaroids.
I would think that the number in actual consumer hands is a lot higher than this. I wouldn't be surprised if the iPad had 80% of the real market.
http://invest.yourdictionary.com/channel-inventory
Channel Inventory is the number of devices available for purchase by the end consumer. Sounds like the Best Buy shelves to me.
According to whom?
Where are these 6 million iPhones in the channel sitting if they are not in stores and store warehouses and stock rooms?
"End Customer"? Where did that term come from?
In general terms, Apple's states its sales to "End Users", as described in this Gartner press release
Emphasis Mine.
Products that are in the hands of either independent retail partners, Apple's own stores, or are en route to them, are typically referred to as "channel inventory."
Unlike some companies in the Tech field, Apple has become very careful to distinguish "shipments" from "end user sales." The analysts who cover Apple would be very quick to pick up the company trying to pass off "channel stuffing" as actual sales growth. And those same analysts would be very quick to seize upon unexpected growth (or shrinkage) of the channel inventory as evidence of either slowing sales, potential SKU changes, or production bottlenecks.
I was referring to the definition that BaldiMac found online.
As pointed out above in their SEC filing, Apple counts anything already delivered or shipped, as "sold".
Probably in China warehouses, since that's where Apple usually ships stock from.
As Apple says, they like to keep 4-6 weeks' worth of channel inventory available in case of factory problems or anticipated demand such as with Christmas coming up.
You seem to be thinking about retail store inventory, instead.
Even then, having something in stock doesn't automatically mean it has also been sold to an end user. For example, ATT might buy up millions in anticipation of a sale that hasn't taken place yet.
Actual sales numbers are hard to get and often rely on exit polls and store manager interviews.
PS. The only time that the "end customer" is not a dealer or store, is when Apple itself is the direct seller, as when you buy an iPad from their online store and the item is shipped directly to you from their channel inventory, with no middle dealers involved.