Tablet market falls 15% as low-cost devices lead sales

Weakened market caused by 'low-cost detachables" sees third-quarter tablet sales fall by 15%

Best Tablets 2015

Worldwide sales of tablet devices fell by almost 15% in the third-quarter of 2016, with Apple, Samsung and Lenovo all seeing market losses.

Vendors shipped 43 million units in the third quarter, an increase of 9.8% over the previous quarter but significantly down from the 51 million sold this time last year.

The report by the International Data Corporation (IDC) has attributed poor growth the increasing popularity of cheap devices, and has warned that the tablet industry could suffer from a 'race to the bottom'.

"Unfortunately, many low-cost detachables also deliver a low-cost experience," said Jitesh Ubrani, senior research analyst at IDC.

Advertisement
Advertisement - Article continues below

"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," added Ubrani.

The largest loss came from Samsung tablet sales, which surprisingly avoided fallout from negative press surrounding the Note 7. Instead, Samsung's overreliance on slate tablets has resulted in a 19.3% drop in growth for the company, shipping only 6.5 million devices, down from 8.1 million.

Apple saw a year-over-year growth decline of 6.2%, but has managed to retain flat revenue for the quarter thanks to sales of the iPad Pro.

The IDC shows Apple still retains the largest market share at 19.6%, followed by Samsung at 16%.

The growth comes as Amazon continues a "strategy of selling low-cost tablets as a gateway and companion to its ecosystem," according to the IDC report.

"Beyond the different end-user experience delivered by low and high-end tablets, we're witnessing real tectonic movements in the market," said Jean Philippe Bouchard, research director at IDC.

"Slate companion devices sold at the low end are serving a broader platform strategy, like Amazon is doing with Alexa on its Fire Tablets, while more expensive productivity tools closer to true computing and legitimate notebook replacement devices should help to keep average prices up," added Bouchard.

Featured Resources

The IT Pro guide to Windows 10 migration

Everything you need to know for a successful transition

Download now

Managing security risk and compliance in a challenging landscape

How key technology partners grow with your organisation

Download now

Software-defined storage for dummies

Control storage costs, eliminate storage bottlenecks and solve storage management challenges

Download now

6 best practices for escaping ransomware

A complete guide to tackling ransomware attacks

Download now
Advertisement

Recommended

Visit/business-strategy/33311/apple-launches-new-tv-gaming-and-finance-services
Business strategy

Apple launches new TV, gaming and finance services

25 Mar 2019
Visit/supply-chain-management-scm/32533/amazon-warehouse-robot-accident-leaves-24-hospitalised
supply chain management (SCM)

Amazon warehouse robot accident leaves 24 hospitalised

7 Dec 2018
Visit/cloud/354231/the-it-pro-podcast-is-the-future-multi-cloud
Cloud

The IT Pro Podcast: Is the future multi-cloud?

29 Nov 2019
Visit/hardware/33929/jony-ive-a-retrospective
Hardware

Jony Ive: A retrospective

29 Nov 2019

Most Popular

Visit/security/identity-and-access-management-iam/354289/44-million-microsoft-customers-found-using
identity and access management (IAM)

44 million Microsoft customers found using compromised passwords

6 Dec 2019
Visit/cloud/microsoft-azure/354230/microsoft-not-amazon-is-going-to-win-the-cloud-wars
Microsoft Azure

Microsoft, not Amazon, is going to win the cloud wars

30 Nov 2019
Visit/network-internet/wifi-hotspots/354283/industrial-wi-fi-6-trial-reveals-blistering-speeds
wifi & hotspots

Industrial Wi-Fi 6 trial reveals blistering speeds

5 Dec 2019
Visit/business/policy-legislation/354282/boris-johnson-suggests-uk-will-side-with-us-over-huawei
Policy & legislation

Boris Johnson suggests UK will side with US over Huawei exclusion

5 Dec 2019