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Increased competition in the tablet market take a toll on Apple's share of the market

The latest tablet shipment figures from IDC are shedding a bit of light on what we’ve seen from Apple’s two most recent quarterly earnings reports. For its fiscal Q2 (calendar Q1), Apple’s iPad sales fell well below analysts’ expectations (16.35 million versus 19.7 million). The numbers for fiscal Q3 (calendar Q2) showed a further decline, with sales of 13.3 million iPads.
 
Whereas most of Apple’s competitors (with the exception of Acer, which saw a 36.3 percent decline in sales) showed year-over-year (YoY) growth, Apple witnessed a 9.3 percent decline. While Apple remains first in actual tablet market share, it slid from commanding 33 percent of the market in Q2 2013 to 26.9 percent in Q2 2014.
 
Back in Q1 2012, Apple was sitting pretty with 68 percent of the market.

 
Samsung remains in second place, having shipped 8.5 million tablets during Q2 to secure 17.2 percent of the market. Lenovo experienced a 64.7 percent surge in YoY growth to take third place with 2.4 million tablets and a 4.9 percent share of the market.


Samsung Galaxy Tab S 10.5
 
As we noted in the Apple earnings article, IDC reports that tablet sales in part are being affected by the growing appeal of “phablet” devices. “The market [is] being impacted by the rise of large-screen smartphones and longer than anticipated ownership cycles,” said IDC’s Jean Philippe Bouchard.
 
"We can also attribute the market deceleration to slow commercial adoption of tablets.”
 
Apple earlier this month enlisted the help of IBM to help bolsters its tablet fortunes in the enterprise market. Apple CEO Tim Cook admitted that it couldn’t take on such efforts on its own, noting that the “deep industry expertise you would need to really transform the enterprise isn’t in our DNA.”

Source: IDC





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