Market Overview

Strategy Analytics: Apple, Huawei, Microsoft Take 40% Share of Ultra-Competitive Tablet Market

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Tablet market fell 6% in Q2 2018, falling for 14 straight quarters and
putting pressure on revenues

The latest research from Strategy
Analytics
shows an extremely competitive tablet market where
many Android vendors are losing share and revenue due to falling prices
and little innovation compelling new consumer sales. Apple, Huawei, and
Microsoft each showed shipment growth in the quarter and combined to
take 40% market share. Despite these successes from market leaders, the
tablet market declined 6% year-on-year to 40.9 million units in Q2 2018
as demand for Android Slates took a beating.

The full report from Strategy Analytics' Connected Computing Devices
(CCD) service, Preliminary Global Tablet Shipments and Market Share:
Q2 2018 Results
, can be found here:
https://www.strategyanalytics.com/access-services/devices/tablets-and-pcs/connected-computing-devices/market-data/report-detail/preliminary-global-tablet-shipments-and-market-share-q2-2018-results-010818.

 

Two of the Top Five Vendors Showed Year-on-Year Growth in Q2 2018

 
                               
Global Tablet Market by Vendor: Q2 2018 (Preliminary Results,
Shipments in Millions of Units)
Vendor     Q2 '18 Shipments   Q2 '18 Market Share   Q2 '17 Shipments   Q2 '17 Market Share   % Growth Y/Y
Apple     11.6   28.2%   11.4   26.1%   1%
Samsung 5.0 12.2% 5.8 13.2% -13%
Huawei 3.7 9.1% 3.2 7.3% 17%
Lenovo 2.0 4.9% 2.2 5.0% -8%
Amazon 1.5 3.6% 2.0 4.5% -26%
All Others     17.2     42.0%     19.1     43.8%     -10%
Totals     40.9     100.0%     43.7     100.0%     -6%
Source: Strategy Analytics' Connected Computing Devices service
 

Eric Smith, Director – Connected Computing said, "After
several quarters of softness in the Windows Detachable 2-in-1 segment,
we are seeing a bounce back due to enterprise demand and a good product
refresh cycle. Microsoft shipments of Surface Pro and Surface Book 2
reached over 1 million and could reap even better results next quarter
with the release of the Surface Go in a much lower price tier. Price has
been a limiting factor in how vendors reach consumers with Detachable
2-in-1s, so 2018 is very interesting as lower cost options come into
play with Surface Go, Qualcomm-powered 2-in-1s, and Chrome-based
2-in-1s."

Chirag Upadhyay, Senior Research Analyst added, "Apple is using
its market size and brand power to put pressure on its Windows and
Android competitors. By lowering prices and adding more functionality
during every product cycle for the last year, Apple has regained several
points of market share and still maintaining a strong ASP due to its Pro
and standard iPad mix. Android vendors, in particular, should be very
concerned with how much revenue they are losing to Apple in 2018."

Tablet Market Dynamics by Operating System

  • Apple iOS shipments (sell-in) grew 1% year-on-year as forecast to 11.6
    million units in Q2 2018, pushing its worldwide market share to 28% of
    the Tablet market. This represented a 27% sequential increase after
    the seasonally low first quarter. Apple benefited from strong sales of
    its newly launched standard iPad with Apple Pencil support just before
    the back-to-school buying season, which pushed ASPs lower year-on-year
    to $410.
  • Android shipments fell to 23.6 million units worldwide in Q2 2018,
    down 10% from 26.4 million a year earlier and 1% sequentially. Market
    share fell 2 percentage points year-on-year to 58% as White Box
    vendors slowly consolidate and exit the market while many branded
    Android vendors have found it very difficult to compete on price
    especially as Apple is willing to lower its iPad prices. Huawei was
    the only branded Android vendor showing growth this quarter while
    Samsung stays focused on revenue and Amazon's growth spurt sputtered
    in Q2.
  • Windows shipments fell 2% year-on-year to 5.8 million units in Q2 2018
    from 5.9 million in Q2 2017. Shipments increased 1% from the previous
    quarter as back-to-school and enterprise demand helped this segment.
    Microsoft's new Surface Pro and Surface Book 2 devices did better than
    expected this quarter and posted its second straight quarter of
    double-digit year-on-year growth since Q3 2016. The Windows tablet
    segment will not show sustained growth again until there are more
    serious Detachable 2-in-1 options in the mid to low tiers. Most PC
    OEMs are addressing this segment with lower cost convertible PCs and
    traditional notebooks.

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory
services, consulting and actionable market intelligence for emerging
technology, mobile and wireless, digital consumer and automotive
electronics companies. With offices in North America, Europe and Asia,
Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com

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