2016/05/04 Tablets Had Worst Quarter Since 2012, says Strategy Analytics

46.5 million Tablets shipped in Q1 2016, lowest since Q3 2012; Windows market share reaches 13%

Boston, MA - April 28, 2016 – The global tablet market began 2016 just as 2015 left off: down. Tablet shipments fell 10% to 46.5 million units during the Q1 2016, according to the new “Preliminary Global Tablet Shipments and Market Share: Q1 2016” report from Strategy Analytics’ Tablet & Touchscreen Strategies (TTS) service. Huawei cracked the top five vendors globally with an impressive 66% year-on-year growth during the first quarter of 2016.

The associated report is published here: http://sa-link.cc/TabletsQ116

Peter King, Research Director, Tablet & Touchscreen Strategies service said, “Apple’s iPad sales declined for 9 straight quarters as the average consumer finds little need to pay an Apple premium to upgrade to the latest and greatest models, which is why iOS market share has fallen to 22% this quarter. Now, Android tablet shipments are declining as the White Box vendor consolidate and branded vendors find it harder to compete on price in such a crowded market. The key for Apple and major Android and Windows vendors will be how aggressively they pursue the enterprise and prosumer markets with their 2-in-1 Tablets, which is still a growing segment.”

Eric Smith, Senior Analyst, Tablet & Touchscreen Strategies service added, “Among top five vendors, Huawei was the only one to show year-on-year growth at a blazing 66% growth rate. Emerging markets were a bright spot for Huawei as it has still not entered the US market in any meaningful way with their tablets. Huawei is also one of several mobile-first vendors releasing Windows 2-in-1 Tablets in the first half of 2016, along with Samsung and Alcatel OneTouch. What we are looking for are much lower prices for so-called Surface-clones to heat this segment up even further and capture even more PC replacement dollars.”

Exhibit 1: The Global Tablet Market Fell to Its Lowest Level since Q3 2012

KEY TAKEAWAYS

• Apple iOS shipments (sell-in) came in at 10.3 million iPads in Q1 2016 leaving it with a worldwide market share of 22% of the Tablet market. The 10.3 million shipments in Q1 2016 declined 19% annually and 36% sequentially on low seasonality following the Q4 holidays.
• Android branded vendors shipped 30.0 million units among them worldwide in Q1 2016, down 16% from 35.9 million a year earlier and down 33% sequentially on low seasonality. Market share has fallen to 65% as high growth of Windows tablet shipments squeeze Android tablets.
• Windows shipments grew 82% year-on-year at 6.2 million units in Q1 2016, from 3.4 million in Q1 2015, reaching 13% market share. Shipments fell 27% sequentially on low seasonality.