Android overtakes Apple's iPad in tablet marketshare, approaches in revenue earned

Posted:
in iPad edited January 2014
Apple's iPad and iPad mini are still the most popular tablets in the world, but Android-powered tablets are grabbing an increasing share of the market and are collectively approaching the iPad in terms of revenue, according to a new study from ABI Research.



During the second quarter of 2013, Android-powered tablets as a collective overtook the iPad and iPad mini in terms of market share, according to ABI's Media Tablets, Ultrabooks and eReaders Research Service. The figures mirror previous findings from other market research firms.

Perhaps more importantly, ABI's research found that tablets running Android are finally approaching Apple's offerings in terms of revenue generated. The overall tablet market for the second quarter of 2013 reached $12.7 billion in value. Of that, the iPad represented 50 percent of worldwide end-user revenues, the first time that has happened, according to ABI.

The firm also found that the average sale price (ASP) for iPads is "rapidly approaching" the average of the rest of the market. iPad ASP dropped 17 percent last quarter, while ASP for Android-powered tablets rose 17 percent over the same period.

This finding, according to ABI, stems from the popularity of the iPad mini, which the research firm says accounts for 60 percent of Apple's total shipments, as well as 49 percent of the company's tablet revenues. Apple does not break down iPad sales by device, but the iPad mini, with its smaller, more portable form factor, has proved remarkably popular in the months since its release.

Apple's smaller tablet offering is the most popular device in what is proving to be the most popular segment of the tablet market. ABI found that 7-inch class tablets made up the majority of shipments for the first time in the second quarter of 2013.

Apple CEO Tim Cook has already acknowledged how important the tablet segment is to the Cupertino, Calif.-based company. Speaking earlier this year, Cook called the tablet market "the mother of all markets" and expressed faith in Apple's ability to compete effectively.

ABI's most recent figures reflect tablet shipments, and therefore do not necessarily show an accurate representation of the number of tablets bought and in the hands of consumers. Cook has previously expressed skepticism on the reliability of such figures, pointing to other studies showing the iPad with a massive usage lead over other devices.

"iPad accounts for 84 percent of the web traffic from tablet," Cook said in July, "which is absolutely incredible. So if there are lots of other tablets selling, I don't know what they are being used for."
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Comments

  • Reply 1 of 205
    "shipments"
  • Reply 2 of 205
    Quote:

    Originally Posted by macdaddykane View Post



    "shipments"

     

    Want to elaborate?

  • Reply 3 of 205
    andysolandysol Posts: 2,506member
    Average Sales Price is approaching iPads? Are there even android tablets that sell for $329 or more?
  • Reply 4 of 205
    Quote:
    Originally Posted by Andysol View Post



    Average Sales Price is approaching iPads? Are there even android tablets that sell for $329 or more?

     

    Isn't the new Galaxy Tab 3 8" over $300? Could be wrong.

  • Reply 5 of 205
    Originally Posted by Bondm16 View Post

    Want to elaborate?


    Toot toot. ????

  • Reply 6 of 205
    patsupatsu Posts: 418member
    He's perhaps saying those are wholesale sales numbers, not necessarily consumer numbers.

    The vendors are also trying to fight for shelf space for the holiday season. So they are shipping more aggressively from a low base.

    Apple will start to do the same whenever they release their next gen iPads. The marketshare number should tilt in favor of Apple again when that happens.
  • Reply 7 of 205
    Quote:

    Originally Posted by Tallest Skil View Post

     

    Toot toot. ????


     

    Train impressions. If its steam, don't forget the chuff chuff sound.

  • Reply 8 of 205
    kevtkevt Posts: 195member
    Apple need to get their new versions to market, especially the iPad mini 2.

    Fantastic device, but it's a year old now, and the Android tablets, despite their shortcomings, show it up on screen resolution. Hopefully it won't be long - a retina iPad Mini and discounts on the current version would be a strong line-up going into the pre-Christmas season.
  • Reply 9 of 205
    ALL vendors selling a tablet-like device are approaching the revenue from a single vendor. It's about füçking time, but it's still a pointless measure without a notion of profitability or use.

    kevt wrote: »
    Apple need to get their new versions to market, especially the iPad mini 2.

    Fantastic device, but it's a year old now, and the Android tablets, despite their shortcomings, show it up on screen resolution. Hopefully it won't be long - a retina iPad Mini and discounts on the current version would be a strong line-up going into the pre-Christmas season.

    I hop you get it but it doesn't look good in terms of cost and power resources this year.
  • Reply 10 of 205
    rogifanrogifan Posts: 10,669member
    And there are still delusional people who think Apple is just fine releasing a 2nd gen mini without retina display. :no:
  • Reply 11 of 205
    patsupatsu Posts: 418member
    These sell-in numbers are misleading because the vendors may be forced to take back the units when they don't sell. Typically, the vendors may rebalance their channel stock by exchanging the old unsold models with new ones. The new ones typically count as new sales again. In Asia, it is not uncommon for vendors to stuff the channel just to meet the "made up" sales targets. Then behind the scene, they have to take a huge loss periodically when old units are returned back.

    This is why companies MUST report sell-in, channel inventory, sell through, and profit numbers to get the real picture. Otherwise, it is likely that they are fudging their numbers for various purposes.

    In US, such practices are better tracked, and channel stuff is illegal. It will be harder for these vendors to fake numbers here.
  • Reply 12 of 205
    kevt wrote: »
    Android tablets, despite their shortcomings, show it up on screen resolution.

    Android fans truely believe it's all about specs. It's not.
  • Reply 13 of 205
    froodfrood Posts: 771member
    Quote:

    Originally Posted by Bondm16 View Post

     

     

    Want to elaborate?


     

     

    The common AppleInsider consensus is that Android devices don't actually exist or sell.  Samsung makes a bunch of them and ships them out to sea, and apparently sinks them in a secret location.  Apple builds the only electronics products that people actually buy.

    The shipped vs sold arguments are usually followed up by questioning the validity of the source and concluding they are 'a bunch of idiots' followed by browsing usage and 'mindshare' arguments.  Just trying to condense every thread related to Android sales into one paragraph :p

  • Reply 14 of 205
    jungmarkjungmark Posts: 6,547member
    kevt wrote: »
    Apple need to get their new versions to market, especially the iPad mini 2.

    Oh sh1t. Tim Cook just read this post and will get right on it. It turns out they were playing candy crush the entire year!

    I haven't seen too many Android tabs in public.
  • Reply 15 of 205
    rogifanrogifan Posts: 10,669member
    akqies wrote: »
    ALL vendors selling a tablet-like device are approaching the revenue from a single vendor. It's about füçking time, but it's still a pointless measure without a notion of profitability or use.
    I hop you get it but it doesn't look good in terms of cost and power resources this year.
    How is it that Amazon and Asus don't seem to have a problem shipping tablets with retina like (or better than retina) displays? The 2nd gen Nexus is not a thick and heavy piece of garbage with terrible battery life. It's very similar in weight to iPad mini and according to AnandTech gets about 12 hours battery life. There's no excuse for the 2nd gen mini not to have retina. And if someone throws out the term "margins" then I ask the question, is Apple a product company or a profit margin company?

    IMO no retina mini this year is basically Apple handing the tablet space to the competition on a silver platter. Sorry but paying a "premium" for the iOS ecosystem and Apple customer support won't be enough. The products need to be better. And with a retina mini Apple would basically own the tablet market again.
  • Reply 16 of 205
    Apple needs to adapt iOS specifically to take advantage of the iPad size.
  • Reply 17 of 205
    rogifanrogifan Posts: 10,669member
    patsu wrote: »
    These sell-in numbers are misleading because the vendors may be forced to take back the units when they don't sell. Typically, the vendors may rebalance their channel stock by exchanging the old unsold models when new ones. The new ones typically count as new sales again. In Asia, it is not uncommon for vendors to stuff the channel just to meet the "made up" sales targets. Then behind the scene, they have to take a huge loss periodically when old units are returned back.

    This is why companies MUST report both sell-in and profit numbers to get the real picture. Otherwise, it is likely that they are fudging their numbers for various purposes.

    In US, such practices are better tracked, and channel stuff is illegal. It will be harder for these vendors to fake numbers here.

    I doubt any OEM's fake numbers. They just don't report them. And they don't have to because these bullshit analytical firms do it for them. Of course none of these numbers can be verified or are audited in any way,
  • Reply 18 of 205
    patsupatsu Posts: 418member
    People do use Android tablets, but there are indeed a lot of junk ones (my dad bought one for $120. I "inspected it"). Battery life, reliability and performance was horrendous.

    I have seen better ones getting used too, mainly for watching pirated movies, play games or in specialized apps (e.g., single purpose Chinese restaurant cash register). Perhaps that's why their usage number is not so high compared to iPad consumers.
  • Reply 19 of 205
    patsupatsu Posts: 418member
    rogifan wrote: »
    I doubt any OEM's fake numbers. They just don't report them. And they don't have to because these bullshit analytical firms do it for them. Of course none of these numbers can be verified or are audited in any way,

    I sold channel tracking software and services for 2 years. You would be surprised what they do, especially in Asia.

    Edit:
    That's partly why I quit the company. There is no future.

    The software and practices help management track the real situation out in the channel. But because the management are subjected to made-up sales targets (e.g., twice last quarter's target just because boss/investors said so), they would rather not expose the real ground situation.

    Even if a new CEO came in, it would be foolish for him to undo the inflated channel numbers. He would be the one who report the bad but real performance. Might as well let the current situation continue while he look for another way out. Sony was bitten by this problem, but Kaz Hirai could force a change because the whole operation was in a spiral anyway.
  • Reply 20 of 205
    rogifan wrote: »
    How is it that Amazon and Asus don't seem to have a problem shipping tablets with retina like (or better than retina) displays? The 2nd gen Nexus is not a thick and heavy piece of garbage with terrible battery life. It's very similar in weight to iPad mini and according to AnandTech gets about 12 hours battery life. There's no excuse for the 2nd gen mini not to have retina. And if someone throws out the term "margins" then I ask the question, is Apple a product company or a profit margin company?

    IMO no retina mini this year is basically Apple handing the tablet space to the competition on a silver platter. Sorry but paying a "premium" for the iOS ecosystem and Apple customer support won't be enough. The products need to be better. And with a retina mini Apple would basically own the tablet market again.

    In no way does either Amazon nor Asus do what Apple does in terms of quality, volume, and profit so you can't make up some stupid comparison about some break-even tablet like the Fire HD that ships with a highly inferior display that is only good on resolution and low on volume.

    What you claim is completely false. The 7" Fire HD is only about 30% heavier than the iPad mini but only 22" of display area compared to the 30" of the iPad mini.
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