Worldwide sales of computer tablets decreased in the last three months of 2014 for the first time since the iPad came out in 2010, tech consultancy IDC says.
Across the world, 76.1 million tablets were sold in the last three months of 2014. That was three per cent lower than the same period a year earlier, and the first time the figure has decreased in the four years IDC has tracked sales.
Sales were still up for the year as a whole by 229.6 million units, an increase of a little over four per cent from 2013's level, the company says in a new report. But the decline towards the end of the year — a time that includes the Christmas holiday season when tablets would presumably be a desirable product to buy — should be concerning for the industry.
That's because much like the smartphone market, the tablet market still depends heavily on two companies to drive sales: Apple and Samsung. When those two have any sort of slip-up, there are few other companies poised to pick up the slack. Apple sold 21 million iPads in the quarter, while Samsung sold 11 million Galaxy tablets. Both figures were 17 and 18 per cent smaller, respectively, than they were in 2013.
"The tablet market is still very top heavy in the sense that it relies mostly on Apple and Samsung to carry the market forward each year," IDC's analyst Jitesh Ubrani said in the report.
Part of Apple's problem, at least, is that it is a victim of its success in other areas, as strong demand for the company's larger iPhones is cannibalizing demand for the iPad. The iPhone 6+, for example, has a 5.5-inch screen. That's getting close to the size of the smallest iPad Mini, which clocks in at 7.9 inches.
Lenovo, ASUS and Amazon are the third-, fourth- and fifth-largest players, but together they only make up a little over 10 per cent of global sales. Indeed, Amazon is clearly trending in the wrong direction as, after selling almost 10 million tablets in 2013, it sold just 3.3 million in 2014, a decline of 66 per cent.
And the market is very crowded after that.
IDC says it doesn't expect the current trend to continue.
"Despite an apparent slow-down of the market, we maintain our forecast about tablet growth in 2015," IDC's tablet research director Jean-Philippe Bouchard said in the report.
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