Apple’s Tablet Sales Sink 15% in 2014 as Market Slowdown Continues

The trend seen in the first half of 2014 carries through to the full year as well, with Apple having shipped 15% fewer iPads in 2014 than it did the previous year, according to new data from ABI Research.

Meanwhile, Samsung’s tablet sales are up 7% for the year, continuing the growth charted back in September.

According to ABI’s analysts, “the declining revenue of the tablet market is hurting the profit margins of many companies,” and for consumers, “tablets are losing their initial appeal and remaining a nice-to-have item.”

Related: Amazon Lags Behind Apple and Samsung in Global Tablet Market

[Press Release]

Apple Tablet Sales Decline 15% from 2013 to 2014 while Samsung Manages 7% Growth

OYSTER BAY, N.Y. – March 27, 2015

​Apple and Samsung managed to maintain control over the branded tablet market in 2014, although Apple carried the market as expected, according to new data from market intelligence firm ABI Research. Apple’s iPad experienced a decline of 15% in shipments between 2013 and 2014 but gained 9% market volume QoQ. In contrast, Samsung managed 7% unit growth due to the success of the company’s new flagship Galaxy Tab S slates and Tab 4 series. ABI Research forecasts a CAGR in shipments of 10% from 2015 to 2020 in conjunction with a CAGR of 3% in revenue. Apple, Samsung, and Lenovo have become the big three for branded tablets, controlling 72% of the market during 2014; making them key leaders entering 2015.

The year 2015 will be interesting for mobile computing. Microsoft is introducing a new version of its OS, Windows 10, and companies are focusing more on growth in emerging markets. “Companies are seeking new avenues where they can continue to grow and there is still interest in markets that are less saturated,” says Research Analyst, Stephanie Van Vactor. “Unfortunately, declining revenues have hurt many companies that focus on lower-end tablets where profit margins are minimal and companies offer limited value-add services.”

The declining revenue of the tablet market is hurting the profit margins of many companies. Apple’s iPad experienced a decline in device revenue by 15% but was able to remain profitable through its ecosystem, App Store and successful launch of the new iPhone 6. “Ultimately, the big push for tablets to replace PCs was not as successful as many vendors initially perceived,” continues Van Vactor. “Phablets and other form-factors that are more functional are directly competing with these devices and stealing market share.” ABI Research forecasts conservative growth, but ultimately, tablets are losing their initial appeal and remaining a nice-to-have item.

These findings are part of ABI Research’s Media Tablets, Ultrabooks & eReaders Market Research.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.

One thought on “Apple’s Tablet Sales Sink 15% in 2014 as Market Slowdown Continues

  1. Mike Coville

    I find it entertaining when people think a dip in tablet sales means people are turned off from buying them. I love my tablet and use it daily, and I bought it over two years ago. I do not need a new one, which means over the last two years I have not supported the tablet market with a purchase. Many people bought high end tablets that should have a 3-5 year life cycle. During that time the market has fewer customers.

    In about a year or 2 you will see an up tick in tablet sales as people start to replace older tablets with a new higher end tablet. Then the ‘experts’ will be cheering the tablet fad for about a year, until the next slow down. The PC market went through the same thing during the early part of 2000s.

    Reply

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