According to the latest sales figures, the tablet market has shrunk by a further 15 percent, which is not surprising, and in line with what most analysts had predicted. The International Data Corporation or IDC says that vendors have shipped 43 million units in the last three months around the world, ending September. Compared to the same quarter of last year, it is down by 14.7 percent.
Apple and Samsung still dominate this segment, but the numbers of Amazon (NASDAQ:AMZN) have gone up by a striking 319 percent, which is a four-fold increase from the same quarter of last year. This makes it clear that the price-leader strategy of Amazon is working to their advantage. Both Samsung and Apple still have a substantial lead over Amazon, though.
A year back, the business was able to ship 800,000 units. But this time, they have sold 3.1 million units, making the e-commerce giant the world’s third-largest tablet store with a 7.3 percent share of the market. Amazon was able to sell more tablets mainly because of the success of their Prime Day “Fire” sale.
Amazon was also the only major company that could buck the trend of declining sales.
Market Share of Apple and Samsung Slips
The iPad shipments of Apple (NASDAQ:AAPL) have fallen by 6.2 percent in the same period, but the company still enjoys a 21.5 percent market share. Apple sold 9.3 million iPads this quarter.
Samsung is at second place behind Apple, and just ahead of Amazon (NASDAQ:AMZN). However, their market share has slipped to 15.1 percent in recent months from a high of 16 percent. In the third quarter, Samsung sold 6.5 million tablets. The company stopped producing the Note 7 recently, but this did not have any impact on their tablet sales.
The two other big players include Huawei and Lenovo.
Why Are Tablet Sales Plummeting?
The big players like Apple and Samsung are losing out to low-cost tablets with detachable keyboards that sometimes cost as little as $200. Jitesh Ubrani, a senior research analyst at IDC says that these products are shaking up the market. But “Unfortunately, many low-cost detachables also deliver a low-cost experience”, he adds.
In the long run, this could prove to be extremely detrimental for the market, says another analyst. Tablets at this price could become disposable devices instead of a quality product that consumers want to use for a long time.