IDC: Tablet market suffers massive slowdown in 2014, Apple's iPad not immune
Year-over-year growth in the tablet market is projected to fall by more than 45 percentage points from its 2013 rate, new data released Tuesday suggests, as Apple is expected to book the first full-year shipment decline in the iPad's history.
The primary issue facing the tablet market --?which is likely to book a growth rate of just 7.2 percent in 2014, compares to 52.5 percent in 2013 --?is the lengthening replacement cycle, according to market research firm IDC. Consumers who were expected to replace their tablets every two to three years are instead waiting four years or more.
"The tablet market continues to be impacted by a few major trends happening in relevant markets," IDC Worldwide Quarterly Mobile Device Trackers executive Ryan Reith said in a release. "In the early stages of the tablet market, device lifecycles were expected to resemble those of smartphones, with replacement occurring every 2-3 years. What has played out instead is that many tablet owners are holding onto their devices for more than 3 years and in some instances more than 4 years."
IDC believes that consumers simply see no need to replace tablets as often because manufacturers have committed to keeping the devices up-to-date with software patches, while the increasing size of smartphones has also caused them to subsume some tablet duties.
The release of 2-in-1 tablet/laptop hybrid devices, which run on Microsoft's Windows 8 platform, have not helped sales. Those devices are thought to account for just 4 percent of the market, leaving manufacturers to try other strategies for growth.
"We need to look at how the tablet ecosystem is answering these challenges, and right now we see a lot of pressure on tablet prices and an influx of entry-level products, which ultimately serves Android really well," IDC tablet research director Jean Philippe Bouchard said. "But we also see tablet manufacturers trying to offset this price pressure by focusing on larger screens and cellular-enabled tablets. The next six months should be really interesting."
The primary issue facing the tablet market --?which is likely to book a growth rate of just 7.2 percent in 2014, compares to 52.5 percent in 2013 --?is the lengthening replacement cycle, according to market research firm IDC. Consumers who were expected to replace their tablets every two to three years are instead waiting four years or more.
"The tablet market continues to be impacted by a few major trends happening in relevant markets," IDC Worldwide Quarterly Mobile Device Trackers executive Ryan Reith said in a release. "In the early stages of the tablet market, device lifecycles were expected to resemble those of smartphones, with replacement occurring every 2-3 years. What has played out instead is that many tablet owners are holding onto their devices for more than 3 years and in some instances more than 4 years."
IDC believes that consumers simply see no need to replace tablets as often because manufacturers have committed to keeping the devices up-to-date with software patches, while the increasing size of smartphones has also caused them to subsume some tablet duties.
The release of 2-in-1 tablet/laptop hybrid devices, which run on Microsoft's Windows 8 platform, have not helped sales. Those devices are thought to account for just 4 percent of the market, leaving manufacturers to try other strategies for growth.
"We need to look at how the tablet ecosystem is answering these challenges, and right now we see a lot of pressure on tablet prices and an influx of entry-level products, which ultimately serves Android really well," IDC tablet research director Jean Philippe Bouchard said. "But we also see tablet manufacturers trying to offset this price pressure by focusing on larger screens and cellular-enabled tablets. The next six months should be really interesting."
Comments
Please don't tell me they count Phablet as tablet too.
IDC believes that consumers simply see no need to replace tablets as often because manufacturers Apple has committed to keeping the devices iPads up-to-date with software patches, while the increasing size of smartphones has also caused them to subsume some tablet duties. Meanwhile, Android tablets, when purchased, sit in drawers gathering dust.
The release of 2-in-1 tablet/laptop hybrid devices, which run on Microsoft's Windows 8 platform, have not helped sales sold any meaningful amount whatsoever. Those devices are thought to account for just 4 percent of the market, leaving manufacturers to try other strategies for growth.
I did some repairs to their thinking.
No one has a clue how the tablet market will shake out, it's only been around since 2010. Since tablets replaced a desktop/laptop for many people, it's hardly a surprise the replacement cycle appears to be similar to that of the devices they replaced.
I don't know why everyone thinks its terrible if the iPad's sales slow down. A slowdown happens. Sales stopping would be an issue. As is being shown, the whole market is slowing down somewhat. The iPad is still king, which is what matters.
Where did all that 183.1M Android tablet have gone?
The same landfill Microsoft dug the E.T. cartridges out of.
They had to rush too, since Microsoft was trying to dump all their unsold KIN and Surface RT inventory there.
Makes zero mention of ASP or profitability, despite it being clear that "Android" tablets are mostly $50-199, while Apple's iPads sell around $300-800, with an ASP of nearly $500.
Outside of Apple, the rest of the world's Android tablet production is about 2x Apple's, but nobody is reporting any profits whatsoever (even as Intel spent multiple billions to subsidize about 1/4 of that amount), while all the world's production of Windows tablets amounted to 1/7 of Apple's iPads, and 2-in-1s are not selling.
IDC's desperation in spinning things badly for Apple is outrageous and overtly deceptive.
Did someone on this planet actually think tablet sales would grow at 52% for eternity? 7.2% is pretty good. Compare that to the auto industry that did 5% in 2014 (considered modest growth).
Apparently, almost everyone that wanted a tablet bought one and didn't see the need to buy a second one for several years.
Where did all that 183.1M Android tablet have gone? In this case we should see 3 Android tablet before I see an iPad. And all I seen yesterday is six iPad Air with 1 Samsung Galaxy Tab.
Please don't tell me they count Phablet as tablet too.
Where do you live? The numbers are for worldwide. It's a different story in the US. I don't see too many ipads when I travel to Asia or Europe.
I’m waiting for the 13”, myself.
Where do you live? The numbers are for worldwide. It's a different story in the US. I don't see too many ipads when I travel to Asia or Europe.
Hong Kong.
The only situation I see people buy an Android tablet here, is either by a nerd, or a 50 years old guy who don't want to spend 1 more cent to get a case for his tablet.
I’m waiting for the 13”, myself.
Better yet just wait for the 15". /s
Old news. I still get a great deal of use out of my Powermac G5.
I’m waiting for the 13”, myself.
At this point, me too. I want to see what it'll offer. If it's good enough then I'll just replace my Mac Pro with a Mac Mini, and not worry about a new portable Mac.
I want a 15”, but that’s six years off. I have a first gen, will get a 12, and then the 15 will run OS XI, so that’s a nice six year lifecycle.
I had the iPad 3 and just updated to the iPad Air 2. It is a world of difference (much faster, much lighter, much more convenient (TouchID), much more powerful (the increase in RAM allows for large AutoCad file manipulation and editing). With both free iWork and now Word, Excel & Powerpoint - I am starting to use it as a laptop replacement. While traveling out of the country I can watch NBC nightly news each night (commercial free), and sling box my DirecTV movies. I think a lot of folks bought the one of the earlier versions and found it interesting but not very useful - the current Air 2 is very productive.
As is being shown, the whole market is slowing down somewhat. The iPad is still king, which is what matters.
Gotta disagree with your marketshare-is-what-matters statement. What matters is that Apple is selling profitable products, unlike the others selling junk that doesn't last even 2 years.
Gotta disagree with your marketshare-is-what-matters statement. What matters is that Apple is selling profitable products, unlike the others selling junk that doesn't last even 2 years.
I didn't say how it was king.
If you look, it's allegedly not the marketshare sales king, but it's the king of usage and profit.