For the second quarter in a row, Apple lost a substantial share of the tablet market as shipments declined and growth of the overall market remained stagnant, according to ABI Research (www.abiresearch.com).
For the fourth quarter (4Q) 2014, Apple shipped 21.42 million iPads, causing the company to experience an 18% year-over-year (YoY) decline. In its most recent quarter, the results for 1Q 2015 depicted the company only shipping 12.62 million iPads, resulting in a 23% year-over-year (YoY) decline.
Apple is not the only company to report declining shipments. Samsung also reported a YoY decline of 30% for 1Q 2015. In total, overall market shipments of OEM branded tablets experienced a YoY decline of 13%.
“There is no denying the market is losing its momentum,” says ABI Research Analyst Stephanie Van Vactor. “The market is in the process of going through a transition as developed markets shift to a refresh / replacement cycle. In addition, vendors are feeling the squeeze due to new devices gaining traction in the market that are in direct competition with tablets, for example, 2-in-1s, phablets, and Chromebooks.”
Despite the apparent slowdown of the tablet market, there are still markets and technology innovations waiting to be explored for this form-factor.
“Tablets remain popular in mature market economies and business adoption has yet to take hold,” adds ABI Research Senior Practice Director Jeff Orr. “Continuing growth in phablets and ultraportable PCs demonstrates that the tablet form-factor is a convenience and not a necessity.”
Over the next year, ABI Research predicts growth to remain flat to slightly negative for branded tablets.
