In the last few weeks, multiple reports have depicted that Apple Inc. (NASDAQ:AAPL), the leader in the global tablet market, is slowly losing its market to Android powered devices. In fact, a recent forecast report on worldwide tablet shipments projects Android and Windows tablet having positive growth at the cost of Apple iPad. Compared to 2012, when Apple iPad swiped nearly half of the tablet market by controlling 45.6% market share, the company is estimated to lose nearly 35% of its market before settling with 30.6% of the market share by 2017.
Despite of the eye-opening statistics, many die-hard Apple fans are not ready to accept the fact that Apple is losing its grip on the worldwide tablet market growth. To test the authenticity of their claims, we have pulled quarterly shipment data of the tablet industry, Apple’s contribution and growth, and have framed all of it together for a tete-a-tete comparison.
For the last four quarters, the number of iPad shipments has been persistently declining. During the same time the number of overall tablet shipments, a majority of them running on Android kept on improving their market share quarter over quarter. Apple iOS tablet (iPad) shipments dived to 14.1 million units in the latest quarter, ended on September 30, 2013, from 22.9 million in the fourth quarter of the last year. However, Apple is expected to see a significant improvement with iPad shipments in Q4, 2013 due to the latest introduction of the new iPad Air, launched in October.
One big reason behind Apple’s substandard performance is the poor pricing strategy for maturing, yet one of the biggest, markets such as India and China. The iPad maker apparently failed to fascinate new tablet owners in comparison to a growing tablet industry. Samsung and Google have both penetrated the maturing market with a low-priced small screen Android tablet. Understanding the fact that small screen tablets are controlling more than 50% of worldwide tablet market, Apple presented its bet with the iPad Mini to grab a sizable pie of it. However, the price conscious users in countries like India and China are finding more value in buying bigger screen Android tablets by investing almost the same amount, required to own an iPad Mini.
The situation is no different in the big screen tablet market. Apple, Samsung and Google are testing each other on various aspects, like price, features and after sales support. While Google is going gaga over its Nexus range tablet, Apple is maintaining high hopes with the new 9.7-inch screen iPad Air.
All such scenarios have forced Apple to explore new boundaries and consequently rumours are out claiming Apple is in advance stages of testing five variants of new iPad sporting giant 12.9-inch display.
“Wow! They have a chart! It must be true!”
No. It’s not a myth. It’s not accurate – it’s obfuscation.
Saying “market share” is misleading. Every tablet is not their market. It would be like saying BMW is losing market share because more low end Toyota’s are sold.
To really get at this you need to compare tablets/phones in the general same consumer price range.
And because Android is a near free IOS that Chinese tablet makers can use to sell a $100, they can sell extremely low priced (still arguably good – this isn’t a good vs bad argument) tablets so that people who otherwise would never buy a tablet can afford one. This is not to say them buying one takes away an Apple consumer .
It’s also hard to argue they are losing market share when in reality they are selling more and more tablets.
It’s not an honest comparison. Seems most people compare Apple to every Android. Again, to use the (albeit weak) analogy, that would be like saying BMW is struggling or not growing (profits) because more people are buying Toyota’s, Hyundi, Honda, Ford, Chrysler, and any other low to mid sized car.
Articles like this (below) and sales numbers of Ipads for black Friday weekend beg to differ. I’d have to say you’re using data/statistics manipulatively to make your case. It’s not an honest data analysis.
No. It’s not a myth. It’s not accurate – it’s obfuscation.
Saying “market share” is misleading. Every tablet is not their market. It would be like saying BMW is losing market share because more low end Toyota’s are sold.
To really get at this you need to compare tablets/phones in the general same consumer price range.
And because Android is a near free IOS that Chinese tablet makers can use to sell a $100, they can sell extremely low priced (still arguably good – this isn’t a good vs bad argument) tablets so that people who otherwise would never buy a tablet can afford one. This is not to say them buying one takes away an Apple consumer .
It’s also hard to argue they are losing market share when in reality they are selling more and more tablets.
It’s not an honest comparison. Seems most people compare Apple to every Android. Again, to use the (albeit weak) analogy, that would be like saying BMW is struggling or not growing (profits) because more people are buying Toyota’s, Hyundi, Honda, Ford, Chrysler, and any other low to mid sized car.
Don’t bother……….Your $560 shorts are gone.
Read Asshole:
A Consumer Electronics Association survey found that “tablets were the most popular consumer electronics product this weekend, with 39% of those shopping for a consumer electronics product buying a tablet over the weekend or planning to buy one before the weekend was over.” Tablets are a hot commodity this holiday season and Apple Inc. (http://www.valuewalk.com/stock-data/?stock_symbol=NASDAQ:AAPL) is leading the device party along with their other smartphone and computer products. Due to the overwhelming response to Apple’s merchandise, some are even calling this time of year, “an Apple iDevices Holiday Season”. In addition to Apple Inc. (http://www.valuewalk.com/stock-data/?stock_symbol=NASDAQ:AAPL)’s well known products, top analysts are recommending BUY Apple stock for your financial portfolio.
Global Equities analyst Trip Chowdhry recommends BUY AAPL because, “demand for Apple products are at [an] all-time high, and is probably twice year-over-year.” While some demand might be from the natural shift of customers leaving Nokia Corporation (http://www.valuewalk.com/stock-data/?stock_symbol=NYSE:NOK) (http://www.valuewalk.com/stock-data/?stock_symbol=BIT:NOK1V) (HEL:NOK1V) and BlackBerry Ltd (http://www.valuewalk.com/stock-data/?stock_symbol=NASDAQ:BBRY) (http://www.valuewalk.com/stock-data/?stock_symbol=TSE:BB), existing Apple users are demanding upgrades from their current products as well. Trip even surveyed 300 people at both Apple retail stores and stores carrying Apple Inc. (http://www.valuewalk.com/stock-data/?stock_symbol=NASDAQ:AAPL) products such as Target, learning that the iPad Air 128GB and iPad Mini Retina 128GB were the most popular devices purchased. And the iPhone followed closely behind the rest of the iPad sales as the next desirable product. Trip is ranked 341 out of 2286 analysts and has a 4.2% average return over S&P-500.
Chris Whitmore is also calling this holiday season “an iPad Christmas”, recommending BUY AAPL and raising his price target from $575 to $625. Chris conducted his own store-and-product checks and found that, “[The store] checks show demand for iPhones, iPads and Macs was very robust and Apple stores enjoyed heavy traffic throughout the holiday weekend. In contrast to previous years, Apple Inc. (http://www.valuewalk.com/stock-data/?stock_symbol=NASDAQ:AAPL) appears to be managing solid levels of supply at its retail stores and inventory restocking was frequent.” And “the discounts/gift cards appear to have catalyzed incremental demand for Apple products which are rarely discounted.” And even the beloved iPhone was still a top seller: “checks at AT&T Inc. (http://www.valuewalk.com/stock-data/?stock_symbol=NYSE:T), Verizon Communications Inc. (http://www.valuewalk.com/stock-data/?stock_symbol=NYSE:VZ) and Sprint Corporation (http://www.valuewalk.com/stock-data/?stock_symbol=NYSE:S) stores showed iPhones were the most popular choice among consumers and sales representatives almost universally suggested we buy an iPhone 5S over other smartphones.” Chris is ranked 973 out of 2268 analysts.
If you look at your holiday wish list, it is very likely that an Apple product, or two, is somewhere towards the top. And if Apple Inc. (http://www.valuewalk.com/stock-data/?stock_symbol=NASDAQ:AAPL) is not currently on your financial wish list, these analysts are recommending you BUY AAPL. Instead of just taking their word for it, be sure to review each analyst’s recommendation history with the TipRanks accountability engine. http://www.tipranks.com/planselection?src=blog today and learn whose financial advice you should trust.