Apple's iPad still leading global tablet market despite Amazon surge

Posted:
in iPad edited November 2019
Apple has continued to maintain its dominance in the global tablet market in the last quarter, according to Strategy Analytics, but major online retailer Amazon has overtaken Samsung to become its nearest rival, in part due to its promotion of Prime Day.




The global tablet market for the last quarter shrunk by 4% year-on-year, research from Strategy Analytics claims, with 39.7 million shipments in Q3 2018 turning into 38.2 million for Q3 2019. Despite the general market contraction, Apple is still not only the lead tablet vendor in terms of share, but it also sold more iPads than the same period last year.

For Q3 2019, it is estimated Apple shipped 10.1 million iPads, up 4% from the 9.7 million observed in the third quarter of 2018. The sales increase, along with the contracting market, means Apple's market share is also up from the 24.4% for last year, rising to 26.5% of global tablet shipments for Q3 2019.

"Apple is trying to reinvent the iPad to become a productivity device by adding keyboard support to most models and eSIM to all cellular models," the analysts claim, noting Apple is also "intensely focused" on building up its services around its large install base.




"Apple released a slightly larger seventh-generation iPad with keyboard support in Q3 2019 for the same price as the previous model, helping drive shipments 4% higher year-on-year," writes Director of Connected Computing Eric Smith. "Larger revenue gains for the company hint at a strong mix of iPad Pros compared to the previous year, as Apple wholesale ASPs rose by 9%."

In last week's fourth-quarter results, Apple revealed iPad revenue increased from $4.1 billion in the three-month period last year to $4.66 billion this year. However, Apple did not reveal unit shipments for any of its products as per its current reporting policy.

Due to a lack of official data from Apple, analysis for units stem from estimates based on revenue and assumed ASP levels, or are sourced from retailers, distributors, and other third-party entities. This means data relating to Apple's iPad shipments isn't necessarily accurate, but could still be used as an indicator of product trends.




While Apple is at the top of the board, the sudden rise of Amazon is likely to be seen as an important change in the tablet market. According to the figures, Amazon went from 2.2 million shipments of the Kindle Fire tablet range in Q3 2018 to 5.3 million in Q3 2019, resulting in year-on-year growth of 141%, as well as growing its market share from 5.6% last year to 13.9%.

By contrast, Samsung saw a reduction from 5.3 million units to 5 million, down 5% year-on-year, and slipping to third place in market share with 13.2%. Strategy Analytics believes the growth of usage for Amazon's digital assistant Alexa and the retailer's promotion of the Prime Day retail event helped catapult it past Samsung, at least for this quarter.

Samsung is said to be balancing its portfolio with "high-end Windows and Android detachables and a strong offering of mid-range Android slates," but Samsung is also said to be "more interested in higher profits rather than an expanding installed base," insinuating there may not be a massive acceleration in growth for the firm's tablets in the future.
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Comments

  • Reply 1 of 25
    gatorguygatorguy Posts: 24,390member
    Amazon? I had no idea. I guess their marketing really is that effective, which surprises me. 

    Yeah we all know "Profits are the air corporation's breathe" where Apple controls the atmosphere but still that's a huge market increase in just a year. 
    muthuk_vanalingam
  • Reply 2 of 25
    But you have to wonder how long the Amazon tablets stay in use by buyers. Amazon, which I generally like, is making the closest thing to disposable electronic devices. They are cheap enough to be almost impulse buys but in my time playing with them they are slow and cludgy to say the least. But they do work for some amount of time and imitate the sense of having actual, useful, modern tech very well. For now Alexa is not a feature I’m looking for in anything I own.
    Wgkrueger2old4funchiamagman1979jahbladeStrangeDayswatto_cobra
  • Reply 3 of 25
    mike1mike1 Posts: 3,333member
    My Mom was given the most current Fire tablet that was available last Christmas. Of course, I have to do the tech support for her and I have to say, that it is probably the most tedious and sluggish experience I've ever experienced. The interface and Settings are not at all intuitive and she constantly gets error messages she doesn't know how to address. She already has an iPhone, so I might pick up an iPad and transition her over. If only for my sanity.
    lkrupp2old4funmagman1979jahblademinicoffeerazorpitStrangeDayschiadewmebb-15
  • Reply 4 of 25
    It is amazing Amazon is doing what Google couldn't do: Sell tablets.

    What is even more amazing is Amazon using a forked version of Android and having its own Appstore.

    I am wondering how long it will take Samsung to start flooding the market with tablets in an attempt to regain the number 2 spot.
    razorpitwatto_cobra
  • Reply 5 of 25
    bigtdsbigtds Posts: 167member
    I didn't know all the other tablets had that big of a market share. Go figure.
  • Reply 6 of 25
    Amazon is pulling a Dell, sell so cheap, that the competition can’t match the price. 

    The problem is, it benefits nobody. The competition stops making devices to compete with Amazon’s offerings, and Amazon ends up not supporting the device for very long since they don’t make much money off the product. 

    Dell has to make up the difference in cutting quality and removing most US based support to stay profitable, but this was at the expense of losing a large number of customers. 


    chiajahbladeCarnagewatto_cobra
  • Reply 7 of 25
    Amazon is pulling a Dell, sell so cheap, that the competition can’t match the price. 

    The problem is, it benefits nobody. The competition stops making devices to compete with Amazon’s offerings, and Amazon ends up not supporting the device for very long since they don’t make much money off the product. 

    Dell has to make up the difference in cutting quality and removing most US based support to stay profitable, but this was at the expense of losing a large number of customers. 


    Amazon doesn’t need to make money on the hardware to make money.  Alexa makes them money through their partners, Amazon Music, Amazon’s video sales, Amazon Prime (free 2 day shipping/shopping), Kindle Unlimited, etc. etc. all make Amazon money.

    Amazon is using the ‘sell printer at cost (or less) and bleed them dry with the ink’ model.  Obviously it works...
    magman1979jahbladebigtds
  • Reply 8 of 25
    So, the Surface is just buried in with the "Others."  It makes you wonder when Microsoft will pull the plug on the Surface product line, as they eventually did with the Windows Phone.
    razorpitwatto_cobra
  • Reply 9 of 25
    wood1208wood1208 Posts: 2,920member
    Ipad is the best tablet all around. Amazon tablet market share is only due to dirt cheap price.
    jahbladeStrangeDaysbb-15watto_cobra
  • Reply 10 of 25
    gatorguygatorguy Posts: 24,390member
    wood1208 said:
    Ipad is the best tablet all around. Amazon tablet market share is only due to dirt cheap price.
    That, and there's a whole lot of people who don't need anything more capable than an Amazon tablet. All they do is browse the internet, visit Facebook or whatever, check email and pay bills, read their books, and play a few relatively simple games. No one really needs an iPad to do those things.
    edited November 2019 bigtds
  • Reply 11 of 25
    gatorguy said:
    wood1208 said:
    Ipad is the best tablet all around. Amazon tablet market share is only due to dirt cheap price.
    That, and there's a whole lot of people who don't need anything more capable than an Amazon tablet. All they do is browse the internet, visit Facebook or whatever, check email and pay bills, read their books, and play a few relatively simple games. No one really needs an iPad to do those things.
    True. The iPad Pro is overkill for casual users. But the cost of the iPads on the low end is pretty darn good. But I think the money spent on even the entry level iPad is smarter than the savings buying into a Fire as the Fires just don’t last. The build quality is so low that it’s practically throw away tech. Can you even get a full year of use? 2? But I agree that if the goal is to just have some technology price allows for the Fire models to win. But I don’t think they inspire people to invest in the platform in a meaningful way. Ad supported technology does have a market.
    bb-15watto_cobra
  • Reply 12 of 25
    gatorguygatorguy Posts: 24,390member
    gatorguy said:
    wood1208 said:
    Ipad is the best tablet all around. Amazon tablet market share is only due to dirt cheap price.
    That, and there's a whole lot of people who don't need anything more capable than an Amazon tablet. All they do is browse the internet, visit Facebook or whatever, check email and pay bills, read their books, and play a few relatively simple games. No one really needs an iPad to do those things.
    True. The iPad Pro is overkill for casual users. But the cost of the iPads on the low end is pretty darn good. But I think the money spent on even the entry level iPad is smarter than the savings buying into a Fire as the Fires just don’t last. The build quality is so low that it’s practically throw away tech. Can you even get a full year of use? 2? But I agree that if the goal is to just have some technology price allows for the Fire models to win. But I don’t think they inspire people to invest in the platform in a meaningful way. Ad supported technology does have a market.
    Agreed.
  • Reply 13 of 25
    gatorguy said:
    wood1208 said:
    Ipad is the best tablet all around. Amazon tablet market share is only due to dirt cheap price.
    That, and there's a whole lot of people who don't need anything more capable than an Amazon tablet. All they do is browse the internet, visit Facebook or whatever, check email and pay bills, read their books, and play a few relatively simple games. No one really needs an iPad to do those things.
    True. The iPad Pro is overkill for casual users. But the cost of the iPads on the low end is pretty darn good. But I think the money spent on even the entry level iPad is smarter than the savings buying into a Fire as the Fires just don’t last. The build quality is so low that it’s practically throw away tech. Can you even get a full year of use? 2? But I agree that if the goal is to just have some technology price allows for the Fire models to win. But I don’t think they inspire people to invest in the platform in a meaningful way. Ad supported technology does have a market.
    There are many price points on the Amazon tablets and during some sales throughout the year, you can get an 7' or 8" Fire Tablet for $20.  So that is part of the number you see on year-to-year increases.  Also, many people buy the cheap $20 units to use as remote controllers for devices or services, and not for typical uses like internet/email/etc.  SONOS controller, security cam controllers, etc.  A friend uses one mounted to the wall to control his saltwater aquarium system.   I have those all over the house to control our SONOS system.   For $20, it's a no-brainer.  In that way, it's not really a direct comparison.  
    edited November 2019
  • Reply 14 of 25
    AppleExposedAppleExposed Posts: 1,805unconfirmed, member
    If Amazon achieves higher marketshare selling 20 buck knockoff iPads you'll begin to hear the doom news and teasing from the android boys.

    bigtds said:
    I didn't know all the other tablets had that big of a market share. Go figure.

    Most non-iPads are in a drawer or in the landfill. Heck monitoring has proved that most aren't online.
    bb-15watto_cobra
  • Reply 15 of 25
    gatorguygatorguy Posts: 24,390member
    ITGUYINSD said:
    gatorguy said:
    wood1208 said:
    Ipad is the best tablet all around. Amazon tablet market share is only due to dirt cheap price.
    That, and there's a whole lot of people who don't need anything more capable than an Amazon tablet. All they do is browse the internet, visit Facebook or whatever, check email and pay bills, read their books, and play a few relatively simple games. No one really needs an iPad to do those things.
    True. The iPad Pro is overkill for casual users. But the cost of the iPads on the low end is pretty darn good. But I think the money spent on even the entry level iPad is smarter than the savings buying into a Fire as the Fires just don’t last. The build quality is so low that it’s practically throw away tech. Can you even get a full year of use? 2? But I agree that if the goal is to just have some technology price allows for the Fire models to win. But I don’t think they inspire people to invest in the platform in a meaningful way. Ad supported technology does have a market.
    There are many price points on the Amazon tablets and during some sales throughout the year, you can get an 7' or 8" Fire Tablet for $20.  So that is part of the number you see on year-to-year increases.  Also, many people buy the cheap $20 units to use as remote controllers for devices or services, and not for typical uses like internet/email/etc.  SONOS controller, security cam controllers, etc.  A friend uses one mounted to the wall to control his saltwater aquarium system.   I have those all over the house to control our SONOS system.   For $20, it's a no-brainer.  In that way, it's not really a direct comparison.  
    FWIW I had read elsewhere (several days ago) that Amazon was reconsidering their Fire hardware pricing. I suspect you'll see a gradual price increase over the next 12 months, tho still a very budget-minded line. For what they are they seem fit for purpose for most folks.

    So assume they raise the base price significantly, even to $40, if you get a year and a half or more from one they're nearly a no-brainer for non-demanding uses and people who think they'd like a compact tablet rather than a laptop. Most of us here probably tend to overspend for those things we buy, thinking our requirements are far greater than they actually are. I know I do. 
  • Reply 16 of 25
    bigtdsbigtds Posts: 167member
    If Amazon achieves higher marketshare selling 20 buck knockoff iPads you'll begin to hear the doom news and teasing from the android boys.

    bigtds said:
    I didn't know all the other tablets had that big of a market share. Go figure.

    Most non-iPads are in a drawer or in the landfill. Heck monitoring has proved that most aren't online.
    And you know this how? Just guessing?
  • Reply 17 of 25
    StrangeDaysStrangeDays Posts: 12,963member
    I’m sure they make a fine drawer-warmer. 
    watto_cobra
  • Reply 18 of 25
    StrangeDaysStrangeDays Posts: 12,963member
    Weird, I don’t see the interwebs getting riled about how whether or not these fine pieces of Amazon tablet technology have user replaceable batteries? Surely this is an oversight; surely there is a thriving mass market of users eager and willing to crack open their tablets to replace the batteries!?
    chiatmaywatto_cobra
  • Reply 19 of 25
    dewmedewme Posts: 5,554member
    If the Fire tablets had HDMI input I’d buy them to use as a cheap monitor. 
  • Reply 20 of 25
    Here’s my theory on what happens when people get their Amazon tablets:  “Hey, how come I can’t get Fortnite on this thing?” or “Where are all my iPhone apps?”
    bb-15StrangeDayswatto_cobra
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