• Total tablet market includes slate tablets plus detachable tablets. References to "tablets" in this release include both slate tablets and detachable devices.
• Data is preliminary and subject to change.
• Vendor shipments are branded device shipments and exclude OEM sales for all vendors.
• The "Vendor" represents the current parent company (or holding company) for all brands owned and operated as subsidiary.
Low-Cost Detachables and Slates in the Lead as Tablet Market Slump Persists in the Third Quarter, According to IDC
The worldwide tablet market continued its slump as vendors shipped 43
million units in the third quarter of 2016 (3Q16), a year-over-year
decline of 14.7%, according to preliminary data from the International
Data Corporation (IDC) Worldwide Quarterly Tablet Tracker.
In contrast to the annual decline, 3Q16 shipments were up 9.8% over the
second quarter of 2016 as the larger vendors prepared for the holiday
quarter.
Low-cost (sub-$200) detachables also reached an all-time
high as vendors like RCA flooded the market. "Unfortunately, many
low-cost detachables also deliver a low-cost experience," said Jitesh Ubrani,
senior research analyst with IDC's Worldwide Quarterly Mobile Device
Trackers. "The race to the bottom is something we have already
experienced with slates and it may prove detrimental to the market in
the long run as detachables could easily be seen as disposable devices
rather than potential PC replacements."
"Beyond the different
end-user experience delivered by low- and high-end tablets, we're
witnessing real tectonic movements in the market with slate companion
devices sold at the low-end serving a broader platform strategy, like
Amazon is doing with Alexa on its Fire Tablets, and more expensive
productivity tools closer to true computing and legitimate notebook
replacement devices that should manage to keep average prices up," said Jean Philippe Bouchard, research director, Tablets at IDC.
Tablet Vendor Highlights
Despite Apple's
marketing push for the iPad Pro, the iPad Air and Mini lines have been
the models with mass appeal, accounting for more than two-thirds of its
shipments this quarter. Although Apple's tablet shipments declined 6.2%
year over year, total iPad-related revenues were flat for the quarter,
thanks to the iPad Pro offering.
Samsung continued to hold
the number 2 position. Fortunately, the negative press from the Note 7
did not bleed over into its tablet business. However, overreliance on
the declining slate market led to a decline of 19.3% compared to 3Q15.
Samsung's attempt to enter the detachable market with its TabPro S at
the beginning of 2016 seems to have taken a backseat as its price and
positioning remain uncompetitive.
The Amazon Prime Day
sale in early July led to a huge surge in shipments of its Fire tablets.
The already low-priced device was offered at a 30% discount then, and
continued to remain popular throughout the rest of the quarter. The new
Fire HD 8 released in early October will likely perform well in the
holiday quarter as it follows Amazon's strategy of selling low-cost
tablets as a gateway and companion to its ecosystem. It is important to
note that Amazon's unprecedented growth is partially attributed to the
fact that IDC did not include the 6-inch tablets offered by Amazon in
3Q15.
Lenovo continued to maintain its stronghold in
Asia/Pacific (excluding Japan) as well as Europe, Middle East and Africa
(EMEA). Though the company has many aspirational products across all
its entire consumer electronics portfolio, none were enough to raise the
company's profile in the tablet market, resulting in a 10.8% decline
this quarter. While the latest Yoga Book announced at IFA garnered some
praise, it is important to note that IDC will be counting this as a
traditional PC.
Huawei's strong presence in the adjacent
smartphone market and overall brand recognition has cascaded into the
tablet market. The vendor offers a very strong value proposition as many
of its tablets (over two-thirds) come integrated with cellular
connectivity while maintaining a similar price to rivals who only offer
WiFi-enabled devices. Huawei's presence in Asian, European, and Middle
Eastern & African markets remains strong.
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