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IDC: Tablet growth slumps to just 3.9% in Q1

  • Citing strong phablet sales and extended upgrade cycles (something CIRP has already observed), IDC estimates global tablet shipments only rose 3.9% Y/Y in Q1 to 50.4M units. That's a marked slowdown from Q4's 28.2% growth, and also below IDC's full-year growth forecast of 19.4%.
  • Worth noting: Q1 comps were especially tough, given IDC estimated year-ago shipments were up 142% Y/Y. Easier comps for later quarters could help growth rebound a bit.
  • Apple (AAPL +0.3%), which last week reported its Q1 iPad units fell 16% Y/Y to 16.4M (Tim Cook partly blamed inventory changes), saw its share drop to 32.5% from 33.2% in Q4 and 40.2% a year ago. With the iPad's ASP at a steep $465, Apple's revenue share might still be above 50%.
  • Android (GOOG) tablets now make up ~2/3 of shipments - that's a positive for Google's traffic acquisition costs, given the huge Mobile Safari search ad payments it makes to Apple.
  • Samsung (SSNLF) grew its share to 22.3% from 18.8% in Q4 and 17.5% a year ago. Asus (ASUUY) had 5% of the market vs. 5.4% a year ago, and Lenovo (LNVGY) grew its share to 4.1% from a mere 1.3%.
  • While tablet growth slows, IDC has estimated the ongoing decline in PC shipments narrowed to 4.4% in Q1. Garner estimated a mere 1.7% drop.
Comments (16)
  • scott trader
    , contributor
    Comments (4641) | Send Message
     
    Those plastic tablets are inferior and sell for nearly cost with slim profit margins....iI do not know from personal interaction with those non apple tablets but from numerous critiques from close friends they work ok at first and then slow way down and cannot sustain battery life...
    2 May, 12:57 PM Reply Like
  • chopchop0
    , contributor
    Comments (3240) | Send Message
     
    you've obviously never used a high-quality nexus or Samsung tablet.
    2 May, 01:21 PM Reply Like
  • scott trader
    , contributor
    Comments (4641) | Send Message
     
    Chop......Unfortunately my son just bought a nexus even on my negative recommendation.......and as of last conversation said it was not as good as my ipad..and wishes he would have stepped up for an ipad....he is very tech saavy....
    2 May, 01:28 PM Reply Like
  • chopchop0
    , contributor
    Comments (3240) | Send Message
     
    Well the public has spoken these last couple of years if you look at tablet marketshare between AAPL, GOOG, AMZN and Samsung.
    2 May, 02:24 PM Reply Like
  • Jiaberg-Sydney-OZ
    , contributor
    Comments (156) | Send Message
     
    1) I personally sometimes am tempted to buy a cheap Android tablet from Aldi, especially 8" one with phone capability just to take with me when out and about. However, when I look at the specs and comments from users, it would not seem the best decision. Also I would need to buy anti-malware software for Android which would add to the costs even for simple email and news reading on the net. Economically, it does not make sense. So I am still holding on my iPad with me.

     

    2) I guess Samsung Galaxy NOTES are classified as tablets? If so, the Samsung market share increase in tablets will be under serious assault once Apple brings out their iPhablet sometimes this year.

     

    3) Of course, the rumoured larger iPad will also inject sale interest in the tablet market. The smaller pc/laptop market would also see plenty of loss in sale due to the large iPad coming out this year. If Apple could integrate OS and iOS well for the larger iPad at the same time, this year or next year, the game will also change a bit.

     

    4) Then of course, there is MSFT Office for iPad which would be a major stimulant to more iPad sales.

     

    5) Let us not write off Windows tablets yet. If MSFT chooses their Windows mobile device makers selectively to allow the OEM's to make decent profits from this segment, Android tablets may be left to be second consideration for OEM's especially when the corporate segment continues to ignore Android and takes up Windows mobile tablets en-mass.

     

    6) Samsung, given its challenge to Google-Android with the Tizen project must have been noticed by MSFT in regard to Windows mobile. I wonder what MSFT would do to Samsung in this regard. If the enterprise segment ignores Android and MSFT also ignore Samsung for dear of Tizen challenge, what would that leave Samsung?
    2 May, 06:14 PM Reply Like
  • chopchop0
    , contributor
    Comments (3240) | Send Message
     
    "Also I would need to buy anti-malware software for Android which would add to the costs even for simple email and news reading on the net. "

     

    Or you could pay attention to what apps you download.
    2 May, 09:36 PM Reply Like
  • Budavar
    , contributor
    Comments (1387) | Send Message
     
    There is this number
    To really numb us =
    Apple. after the split,
    Please do just get this

     

    Have a PER lower,
    Do repeat, quite lower
    Than that Amazon.
    That is quite spot on!

     

    What can that add,
    Not subtract but add
    To our bank balance
    With such brilliance.

     

    Again, dear fat cat
    Double check the fact,
    Pause...think...Think again...ACT!
    2 May, 01:02 PM Reply Like
  • MJ Badagliacco
    , contributor
    Comments (235) | Send Message
     
    OF COURSE tablet sales slowed in the March quarter... Calendar Q4 was the holiday quarter... the growth will always occur there, not in calendar Q1... When are these "analysts" going to get it?

     

    This is simple sensationalism designed to grab headlines! Nothing is "slowing" it is simply going through its cyclical path...
    2 May, 01:04 PM Reply Like
  • jonesdouge
    , contributor
    Comment (1) | Send Message
     
    The comparison is Q1 vs Q1 last year not vs Q4.
    2 May, 01:19 PM Reply Like
  • MJ Badagliacco
    , contributor
    Comments (235) | Send Message
     
    And they are still growing... just because it is not at the same pace as let year's Q4 or even Q1 y/y it is still growth...
    2 May, 02:54 PM Reply Like
  • relfont
    , contributor
    Comments (15) | Send Message
     
    Question how much revenue does Apple receive for updates,etc from present IPad users?
    2 May, 01:15 PM Reply Like
  • scott trader
    , contributor
    Comments (4641) | Send Message
     
    Idc......not the most accurat....IDC is playing the very same type of game by throwing in 2-in-1 Ultrabooks that act as a tablet knowing full well that Apple doesn't play in that market. To prop up the other vendors numbers, the 2-in-1 devices are now included. It's sad that the market has to play games because they can't beat Apple hea
    2 May, 01:25 PM Reply Like
  • oak8292
    , contributor
    Comments (297) | Send Message
     
    relfont

     

    None. The iOS updates are free and they defer revenue for the updates.

     

    Apple provides a store for the sale of Apps and gets revenue from in-App purchases. As of June 2013 iPhone and iPad App developers had made over $10 billion and the developers get 70% with Apple keeping 30% so you can do the math.

     

    They should be providing updated numbers in June at WWDC. Some of the revenue that Apple keeps has to provide for the overhead of serving Apps so it isn't all margin.
    2 May, 06:27 PM Reply Like
  • PJS
    , contributor
    Comments (77) | Send Message
     
    Re: Lenovo - Both desktop percentage drop slow down, and tablet percentage increase appears favorable going forward through September and December buying period.
    2 May, 05:46 PM Reply Like
  • techy46
    , contributor
    Comments (5732) | Send Message
     
    So we got annual sales of 300 million classic PC's and another 200 million tablets. But the questions is how many of those 1 billion smart phones are actually phablets? I use my Lumia 900 as a PC browser and reader when out and about and sometimes on the couch. Will we ever see 400-500 million annual sales for each Apple, Google and Windows devices?
    3 May, 01:30 AM Reply Like
  • Applocrat
    , contributor
    Comments (781) | Send Message
     
    Mathematical literacy is very important in investing.

     

    http://www.asymco.com
    5 May, 10:32 PM Reply Like
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