Apple's iPad loses ground to generic tablets in 2014, report says
A new report from Strategy Analytics published on Wednesday suggests so-called "Brand X" tablets collectively outperformed Apple's iPad and offerings from Samsung in 2014, marking the first time generic device makers beat out the two established brands on a year-end basis.
According to research firm Strategy Analytics, generic tablet suppliers rebadging their products under another brand name shipped around 70 million devices last year to take 29 percent of the worldwide market, reports Re/code.
Apple retained its spot as the top global tablet vendor with 26 percent of the market, while rival Samsung ended the year with a 17 percent share, the report said. Inexpensive Brand X tablets are beginning to encroach on the market leaders' lofty positions, however, as the tablet format reaches developing markets where price often takes priority over polish. In addition to serving emerging markets, generic tablet makers supply hardware for rebranding and distribution as part of U.S. wireless carrier promotions given away on contract.
"It's pretty easy to find the deals: Get a data plan and a tablet for free," said Strategy Analytics senior analyst Eric Smith.
For the most recent quarter ending in December, Apple reported iPad sales of 21.4 million units, down 18 percent year-over-year. The sales decline spurred a 22 percent dip in revenue from the same time last year, earning Apple about $9 billion compared to 2014's $11.5 billion performance.
Apple CEO Tim Cook addressed slumping tablet sales during the company's quarterly earnings conference call in January, reiterating that iPad has a bright future and numbers should stabilize "over the long run." Commenting on platform longevity, he cited a recent report from Chitika Research that found iPad users account for more than 70 percent of tablet-based Web traffic in North America. The statistic suggests less expensive tablets are not being used as often as Apple's device.
Cook tempered investor expectations, however, saying iPad may not see a "miraculous" improvement year-over-year performance in the near term.
In the coming months, Apple is rumored to release a larger format "iPad Pro" that could present an opportunity for the company to debut a tablet stylus. Aside from an alleged 12-inch screen size, little is known about the supposed jumbo-sized tablet.
According to research firm Strategy Analytics, generic tablet suppliers rebadging their products under another brand name shipped around 70 million devices last year to take 29 percent of the worldwide market, reports Re/code.
Apple retained its spot as the top global tablet vendor with 26 percent of the market, while rival Samsung ended the year with a 17 percent share, the report said. Inexpensive Brand X tablets are beginning to encroach on the market leaders' lofty positions, however, as the tablet format reaches developing markets where price often takes priority over polish. In addition to serving emerging markets, generic tablet makers supply hardware for rebranding and distribution as part of U.S. wireless carrier promotions given away on contract.
"It's pretty easy to find the deals: Get a data plan and a tablet for free," said Strategy Analytics senior analyst Eric Smith.
For the most recent quarter ending in December, Apple reported iPad sales of 21.4 million units, down 18 percent year-over-year. The sales decline spurred a 22 percent dip in revenue from the same time last year, earning Apple about $9 billion compared to 2014's $11.5 billion performance.
Apple CEO Tim Cook addressed slumping tablet sales during the company's quarterly earnings conference call in January, reiterating that iPad has a bright future and numbers should stabilize "over the long run." Commenting on platform longevity, he cited a recent report from Chitika Research that found iPad users account for more than 70 percent of tablet-based Web traffic in North America. The statistic suggests less expensive tablets are not being used as often as Apple's device.
Cook tempered investor expectations, however, saying iPad may not see a "miraculous" improvement year-over-year performance in the near term.
In the coming months, Apple is rumored to release a larger format "iPad Pro" that could present an opportunity for the company to debut a tablet stylus. Aside from an alleged 12-inch screen size, little is known about the supposed jumbo-sized tablet.
Comments
Ah, so the no name tablets that no one uses and people get for free to run free apps and never buy anything for or on and do nothing useful with... is "beating" Apple. Yeah. Who cares.
I'll tell you what the real story should be... is what happens when people realize that they don't want this crap taking up room in their house and trash it? There are tons of electronic equipment and crap that people buy for nothing that consumes natural resources and has no real value on earth. We need to stop it and make and purchase products with real value and real longevity.
They seem to have tried inhouse ad teams, but I don't think it's working out well. There's not enough focus.
But, to put it into perspective, the iPad is still amazingly successful. It's sad that Jobs died so young, as his was the driving vision that created it, and he died only the year after it was introduced. If only he had been able to cheerlead his baby for a little longer.
Eeyup.
This should be in a different section called AppleOutsider with all the other click-bait nonsense.
I want more than one or two articles a week to read... click-bait or not.
I like the terms "Generic" and "Brand X"
We can use them to describe all devices commonly referred to as "Others" in the market share reports. It adds a bit of whimsy.
I was confused by the words "outperformed" and "beat" until I read further and realized it was just comparing units shipped. I feel these are misleading clickbaity word choices.
Agree - not only comparing units shipped, but sub $100 tablets and others that are being all but given away.
I don't know why AppleInsider includes articles referencing Strategy Analytics, IDC, or Gartner as all three companies' business model is something beyond "research". All you have to do is check their client lists to know why they report their "findings" in the manner they do.
I know I'm preaching to the choir, but would hope AI will resist quoting any of the three as their positions are pure marketing and is useless noise.
Apple products are much long lasting than other tablets.. especially china made tablets from china. some only last a few weeks and spoilt so they keep on buying that y shipping units higher than apple tablets.
Sometimes datas do not really tell the whole story about the market. they are using it to compare and criticize on apple products.
We wouldn't need these analysts if the companies themselves actually reported numbers.
I'd love to read a press release from "eFun" or "Ellipsis" to see how many tablets they shipped. It would be quite the page-turner.
Confirmed!
Verizon was offering 16GB 4G Mini's for $200 the day of the iP6 launch. I waved everyone off it because they were first-gen Minis. Apple should really stop selling those.
Eventually so much junk will accumulate that you can't stop its spread.
Consumer Satisfaction and Profits, however . . .
They tell the tale.
But even if these products are affordable, their durability and quality are indeed suspect!
http://www.walmart.com/tp/tablets-under-100
They're using ok processors too even in the $50-60 models e.g:
http://www.mediatek.com/en/products/mobile-communications/tablet/mt8127/
They have poor quality displays but easily something you could give as a gift or to a kid to throw around. For books, movie playback and some games, they'd do the job ok at about 1/4 the price of the iPad.
These kind of companies are happy to make $5 on a $50-60 tablet because if they sell in the millions then it's a few million in profit whereas Apple makes billions in profit. They might be monetizing them with bundled free-to-play apps too.
Apple can't compete with these kind of sellers. They might not have to but they're obviously going to erode a large number of potential sales.
Apple should be able to maintain sales with enough compelling software and their eco-system but mainly the people who depend on their tablets. They'll just have to give them away for free and then when they try to use it, charge them a $250 in-app purchase.