The downward slide in tablet shipments has moderated during 2016 because Amazon’s and Huawei’s tablets have propped up the overall product sales despite the market headwinds. Global market research firm TrendForce estimates that global tablet shipments for 2016 will total around 154.5 million units, translating to an annual decline of 8.3%. Looking ahead to 2017, branded tablet vendors will adjust their product strategies and generate demand by releasing low-price devices. Hence, global shipments for 2017 are forecast to fall by just 5.3% annually to about 146.4 million units.
“Most tablet brands will be more conservative in committing their resources during 2017,” TrendForce notebook analyst Anita Wang said in a statement. “Amazon and Huawei on the contrary have ambitions to increase their tablet shipments by many folds. The two brands are expected to expand their offerings in the near future. Additionally, Microsoft will be releasing Surface Pro 5 in the first quarter of 2017. Generally speaking, tablet shipments will drop next year but the decline will be fairly limited.”
Apple is expected to launch affordable iPad devices to maintain its market share.
Amazon made a splash in the tablet market with extremely price-friendly products in 2015. Since then, Amazon’s tablet shipments rose sharply for two consecutive years, and its competitors have also shifted their focus on low-price models. “To narrow Amazon’s lead in this particular segment, Apple will be introducing a more affordable 9.7-inch iPad device in the first quarter of 2017,” said Wang. “While this low-price model is expected to be the main driver of iPad shipments for the entire year, whether it will be a hit with consumers remains to be seen.”
Another significant trend in next year’s tablet market will be the large increase in device size. TrendForce forecasts that over 30% of tablets shipped worldwide in 2017 will be in the 10-inch and greater size segment. The 10.X-inch segment in particular will see a noticeable expansion in shipment share mainly because the leading brand Apple will also be launching a new 10.5-inch iPad device next year.
Samsung too has adjusted its product strategy and reinserted the 10.1-inch size category into its tablet offerings. Besides Apple and Samsung, other branded vendors are very active in the large-size segment as well because product margins of small-size tablets are being eroded by the intense price competition.
Source: TrendForce
MacDailyNews Take: We wouldn’t bet on Apple’s market share decreasing YOY until Apple’s new iPad lineup is revealed next spring. We expect iPad to return to YOY unit sales growth in 2017.
SEE ALSO:
Apple to launch 3 new iPads in March, including bezel-free 10.9-inch model, analysts say – November 11, 2016
The chart actually shows Apple losing share in a shrinking market. Not good.
It is what it is. It doesn’t make much sense for Apple to try to compete with Amazon’s low-end tablets. If consumers want low-end tablets there will be plenty of manufacturers willing to satisfy their needs but it definitely won’t be Apple. I can clearly understand consumers wanting cheap tablets but I believe Apple should continue building high-end long-lasting tablets if that’s their goal. I honestly don’t see why a company that wishes to hold itself to higher standards has to take so much flak from critics. If it’s a matter of falling revenue then Apple should expand into other areas instead of giving in and selling low-cost junk.
It’s much better for the ecology if a consumer buys a product and it lasts a long time rather than having this buy-it-cheap-and-throw-it-away attitude. I’m sure selling $50 tablets to consumers makes some sort of sense but I’m guessing the quality must be rather poor.
Possibility for a cheap device to be more ‘disposable’ and have a shorter ‘life’ is definitely higher but there are always exceptions that last longer and better fit the purpose they were purchased for than their more expensive counterparts.
Interesting to note that low-resolution tablet and smaller than 7in segments that Apple doesn’t even sell in is excluded from the report. Possible spin?
The tablet market replaced the netbook market. Remember?