Apple's Share of Tablet Market Sinks on Lack of Product Launches in Early 2013

[Torrijos]

The real issue here is people lack of understanding that the numbers are affected by the "others" category...

All of the sudden those "others" sold 17.5 millions tablet, where? With what kind of return?

This past couple of years we learned to make a distinction between smartphones and feature and dumb mobile phone, maybe it's time we start making the same distinction...

Can we really compare 14.6 millions iPads that are sold with a great profit margin, and make everyday the iOS ecosystem more profitable and a clear future alternative to the old PC market, with 17.5 millions tablet that are nowhere to be found.

And then there is the fact that this kind of stats should take in account the cyclicality of release dates.
Chart should be made not by quarter but by weeks after release. That way we could still compare performance when Apple juggles the release dates.

 

[youniversal]

I dont know about the US but in Aus I'm still yet to see anything other than an iPad in real world use. I believe people buy these tablets because they are cheaper, realise they are a POS and leave them in the drawer.
I know thats what my friend did. Now his Nexus is just an expensive coaster.

 

[lazard]

The real issue here is people lack of understanding that the numbers are affected by the "others" category...

All of the sudden those "others" sold 17.5 millions tablet, where? With what kind of return?

This past couple of years we learned to make a distinction between smartphones and feature and dumb mobile phone, maybe it's time we start making the same distinction...

Can we really compare 14.6 millions iPads that are sold with a great profit margin, and make everyday the iOS ecosystem more profitable and a clear future alternative to the old PC market, with 17.5 millions tablet that are nowhere to be found.

And then there is the fact that this kind of stats should take in account the cyclicality of release dates.
Chart should be made not by quarter but by weeks after release. That way we could still compare performance when Apple juggles the release dates.

just because those 17.5 million tablets weren't sold in the US doesn't mean that they are nowhere to be found.

 

[Squilly]

It doesn't surprise me that Samsung's YOY has been so strong. Their advertising/marketing has been insane lately.

 

[69650]

That's why never understood using market share as a performance metric.

Apple have used market share figures in their keynotes for a number of years to demonstrate how successful their products are. So you can't turn it around now and say that it doesn't matter anymore. Clearly Apple thinks it does matter or they wouldn't keep putting the figures into their presentations.

Fact is that for whatever reason the iPad is losing market share and therefore losing sales. That's worrying because it's bound to hit revenue and profit growth down the line.

 

[EbookReader]

The tablet market share is more and more resembling the smartphone market share.

Android is the new "Windows"
iOS is the new "Macs"

 

[2IS]

Did anyone think the tablet race would turn out differently? A ton of inexpensive tablets flood the market, many of which are 1/3 the price of the iPad. Of course the iPad is going to lose market share. Apple knows this.

The meaningful statistics are profit and usage percentage, IMO. And Apple is miles ahead in both.

I assure you, Apple is losing profit. Lets not pretend that suddenly, the only metrics that matter are the ones Apple is still ahead in.

 

[69650]

The tablet market share is more and more resembling the smartphone market share.

Makes sense if you think about it. If you have an iPhone you're more likely to stick with iOS and buy an iPad because you're used to iOS or so you don't have to go out and buy all the apps again on another platform. Same goes for Android users I guess.

Android is the new "Windows"
iOS is the new "Macs"

That would be a really depressing result given what happened in the past. I was hoping that maybe Windows Mobile or Blackberry would gain a reasonable foothold so that we don't end up with another situation like you describe with one dominant player dictating the market and driving out innovation and competition.

 

[Michael Scrip]

Apple have used market share figures in their keynotes for a number of years to demonstrate how successful their products are. So you can't turn it around now and say that it doesn't matter anymore. Clearly Apple thinks it does matter or they wouldn't keep putting the figures into their presentations.

Market share honestly never mattered. It is a nice thing to put on a slide at a keynote... I will agree with that. But that's just a form of marketing. You tend to put the best stuff out in public, right? Carefully crafted messages. Information people can digest.

But really... a company can be successful whether they are ranked #1 in the market... or #5... or #10

For instance... do you know where Wendy's ranks among McDonalds, Burger King and Subway? Does it really matter? Of course not. Each company just focuses on what they do best and makes their customers happy. It's all you can do, really. You're only in charge of yourself.

Back to tablets...

Just because ten cheap Chinese tablets get sold for every one iPad... and thus causing Apple to not have the largest share of the market this quarter... does that mean the iPad is no longer successful?

The Mac is still around despite not having as much market share as Windows. And like it or not... the world runs on Windows. But Apple still sells Macs to people who want them.

So now that "Cheap Chinese Tablets" are now the #1 tablet in the world... does that make them important?

I certainly don't think so. I've got my eye on a new Apple tablet... I won't even dream of buying a cheap Chinese tablet. And as long as there are people like me who enjoy Apple products... Apple will still be around.

Fact is that for whatever reason the iPad is losing market share and therefore losing sales. That's worrying because it's bound to hit revenue and profit growth down the line.

This is so odd. You think Apple lost market share because of something they did wrong.

NO. The market itself grew... and there were more cheap garbage tablets that were pumped into the market.

Apple's actual sales did dip YOY... but that can be attributed to Apple not releasing a new model last quarter.

Still though... they sold 14 million of some of the most expensive tablets in the world. And sales will probably go up when the next models are released.

Apple has no problem selling rather expensive tablets... tablets that actually make them money... and no one applauds that.

But let a bunch of $70 tablets enter the market... and somehow that's Apple's fault?

 

[bassfingers]

Something is fishy here. How can 2 out of 3 tablets sold be a knockoff? In real life, I run into people with iPads 30-1 over other tablets

 

[albusseverus]

I assure you, Apple is losing profit. Lets not pretend that suddenly, the only metrics that matter are the ones Apple is still ahead in.

Apple had slightly higher income and a little lower profit, for this quarter—with no new iPad to boost sales, COMPARED to last year with a the first Retina iPad boom in sales.

Apple is not losing profit, just transferring it to a different quarter of the year.

Any HONEST analyst would have been over the moon about Apple's ability to stay so steady with no new product in the quarter. iPhone sales are incredibly strong, most especially for this time of year.

NOW to this article—
Only Apple releases sales figures. NO OTHER COMPANY provides any data for comparison. Time and time again, these shipping "estimates" are debunked. Time and time again, imagined shipping numbers are compared to Apple's legally binding actual sales filings & guess what… it comes up as a big negative Apple story, link bait and a media blitz for the company that makes up the numbers (I'm not even going to name them, they are so shameful).

The only way Android is the new Windows is in that millions of people buy crappy ones that don't work, and put them in a draw. Next time they save up and buy the genuine Apple article.

 

[Dmunjal]

Apple had slightly higher income and a little lower profit, for this quarter—with no new iPad to boost sales, COMPARED to last year with a the first Retina iPad boom in sales.

Apple is not losing profit, just transferring it to a different quarter of the year.

Any HONEST analyst would have been over the moon about Apple's ability to stay so steady with no new product in the quarter. iPhone sales are incredibly strong, most especially for this time of year.

NOW to this article—
Only Apple releases sales figures. NO OTHER COMPANY provides any data for comparison. Time and time again, these shipping "estimates" are debunked. Time and time again, imagined shipping numbers are compared to Apple's legally binding actual sales filings & guess what… it comes up as a big negative Apple story, link bait and a media blitz for the company that makes up the numbers (I'm not even going to name them, they are so shameful).

The only way Android is the new Windows is in that millions of people buy crappy ones that don't work, and put them in a draw. Next time they save up and buy the genuine Apple article.

Look at this way. What if there were no other tablet manufacturers? What would Apple charge and what would the ASPs be? There is a reason the Mini exists and a reason why more people are buying 16GB versions instead of the pricier 64GB versions. That's called competition and they have taken money out of Apple's pocket. Otherwise, why are they spending so much effort suing Samsung?

 

[IJ Reilly]

Apple have used market share figures in their keynotes for a number of years to demonstrate how successful their products are. So you can't turn it around now and say that it doesn't matter anymore. Clearly Apple thinks it does matter or they wouldn't keep putting the figures into their presentations.

Fact is that for whatever reason the iPad is losing market share and therefore losing sales. That's worrying because it's bound to hit revenue and profit growth down the line.

Just because Apple uses market share in their PR doesn't make it a meaningful measurement of anything. It's only meaningful if you believe that PR is a form or representation of reality.

 

[2IS]

Just because Apple uses market share in their PR doesn't make it a meaningful measurement of anything. It's only meaningful if you believe that PR is a form or representation of reality.

Market share isn't important because apple says so, market share is important because it's important. It gauges how many people are interested in your products compared to other products and the trend suggests that people are moving away from Apple products. To suggest it's not important is nothing more than putting fanboyism ahead of sense.

 

[kevinof]

Sorry but that is total rubbish. Apple gives sales figures for it's direct sales ONLY. ie anything sold off it's websites or through an Apple store. That only accounts for around 15% (I may be slightly off on this figure) of it's total sales. Everything else is "shipped", just like ever other company.

...
NOW to this article—
Only Apple releases sales figures. NO OTHER COMPANY provides any data for comparison. Time and time again, these shipping "estimates" are debunked. Time and time again, imagined shipping numbers are compared to Apple's legally binding actual sales filings & guess what… it comes up as a big negative Apple story, link bait and a media blitz for the company that makes up the numbers (I'm not even going to name them, they are so shameful).
.

 

[pirg]

Market share isn't important because apple says so, market share is important because it's important. It gauges how many people are interested in your products compared to other products and the trend suggests that people are moving away from Apple products. To suggest it's not important is nothing more than putting fanboyism ahead of sense.

So how do you feel about profit? What does that say about a company? And sales? What are your thoughts?

How was dwindling marketshare affected Apple's bottom line? Because after all, the trend suggests people are moving away from apple, right?

 

[benjo765]

woah. that is one heck of a market share plunge.
going long on apple shares right now = suicide bid

----------

So how do you feel about profit? What does that say about a company? And sales? What are your thoughts?

How was dwindling marketshare affected Apple's bottom line? Because after all, the trend suggests people are moving away from apple, right?

There are trends and then there are long-term likelihoods

One of which is that a smaller pool of apple fanboys aren't going to shell out $2000 for an iphone in order to keep apples profit levels up

 

[pirg]

There are trends and then there are long-term likelihoods

One of which is that a smaller pool of apple fanboys aren't going to shell out $1000 for an iphone in order to keep apples profit levels up

But apple sales are increasing and have been doing so for quite a while. How do you explain that?

 

[the8thark]

Wow!!! Really? With a comment like that all iPad's are flying off the store shelves at incredible break neck speeds. Or maybe Apple is not shipping anymore to be sold? That's even better news!

It's the second point. Cook makes sure that Apple only has enough iPads made. that the market can handle. Hence very few unsold. Also there is a limit to how many foxconn and others can actually make. I think it's those 2 factors that are really playing a part.

And yes I get your joke .

 

[Dmunjal]

But apple sales are increasing and have been doing so for quite a while. How do you explain that?

Because the market is still growing. But their profits are shrinking rapidly. How do you explain that?

 

[pirg]

Because the market is still growing. But their profits are shrinking rapidly. How do you explain that?

The same way tim cook did. More rollouts, cheaper products, lower margins. Their profits aren't "shrinking rapidly" because people aren't buying their products. Indeed, more people are buying apple than ever before.

It becomes easy to dismiss a company when you have such a myopic view.

 

[2IS]

The same way tim cook did. More rollouts, cheaper products, lower margins. Their profits aren't "shrinking rapidly" because people aren't buying their products. Indeed, more people are buying apple than ever before.

It becomes easy to dismiss a company when you have such a myopic view.

Even more people are buying other products and the gap is increasing, not decreasing. If you think that trend can continue while still maintaining profit, you are again, letting fanboyism get in the way of sense. I'd ask how you feel about that, but I already know. Just burry your head in the sand.

 

[Dmunjal]

The same way tim cook did. More rollouts, cheaper products, lower margins. Their profits aren't "shrinking rapidly" because people aren't buying their products. Indeed, more people are buying apple than ever before.

It becomes easy to dismiss a company when you have such a myopic view.

Why are there cheaper products and lower margins? That's competition.

More color on what's happening:

Apple: A Few Signs Of Trouble
http://seekingalpha.com/article/1607762?source=ansh $AAPL

 

[pirg]

Why are there cheaper products and lower margins? That's competition.

Who's denying that there's competition? Of course there is. But you're making it sound like apple is being destroyed by the competition solely because of their marketshare. I assure you they are not.

If Toyota was the only car manufacturer in the world and sold only two cars they would have 100% marketshare among car owners. If Honda came along and sold one car, Toyotas market share would (crash, plummet, fall, insert your own verb here) to 66%!!!! The horror! That doesn't automatically mean Toyota is failing nor does it mean Honda is better.

While it could mean that, you can't draw that conclusion from one metric, especially not such a flimsy one. If hyundai sold a car, omg, Toyota is now at 50%, when will the bleeding stop??

More people still own ipads than any other tablet device. Fact.

With Apple Of course it's marketshare is going to go down as more competitors enter the market. That's common sense, I don't need an analyst to tell me that.

But in Apple's case is that leading to fewer sales, less revenue or imminent bankruptcy? No it is not and anyone who tries to say it is is wholly misinformed or just in denial.

 

[IJ Reilly]

Market share isn't important because apple says so, market share is important because it's important. It gauges how many people are interested in your products compared to other products and the trend suggests that people are moving away from Apple products. To suggest it's not important is nothing more than putting fanboyism ahead of sense.

Except that it isn't, and it doesn't. A company can own 100% of a market because nobody else is interested in participating in that market, because it small or it isn't growing. How valuable is that? By contrast, a company can own 2% of a large, diverse and growing market. How relatively valuable is that? Market share, in and of itself, means nothing. It doesn't represent profits, and it doesn't represent growth.

I've posted many times on this and related topics. You might want to read those posts before you go the weak and desperate insult route.