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Can Industry Players Duplicate Apple and Huawei Tablet Success?

by Eric Smith | 8月 03, 2017

After 13 straight quarters of year-on-year shipment declines, Apple posted a sensational increase in Q2 2017 of +15%. Meanwhile Huawei has thrilled the industry for the last two years with sustained growth through a proven strategy of partnering with carriers and a good portfolio mix, tacking on 42% growth this quarter. Still, the overall tablet market declined by 7% year-on-year in Q2 2017 as many vendors experience difficulty in adjusting to new market trends and consumer demand. Can other industry players duplicate this success or will they continue an aggravating journey through the market?
Our full report with detailed market breakdown is available here:

Exhibit 1: Q2 2017 Showed a Tremendous Tablet Market Share Shake-up

Q2 2017 Preliminary Tablet MS PR Chart

Tablet Market Dynamics by Operating System
• Apple iOS shipments (sell-in) came in above projections at an astounding 11.4 million iPads in Q2 2017, skyrocketing its worldwide market share to 26% of the Tablet market. Despite a large influx of lower-cost basic 9.7-inch iPads, ASPs held steady quarter-on-quarter at $435, though down 11% compared to the previous year when the iPad Pro 9.7 launched.
• Android shipments fell to 26.4 million units worldwide in Q2 2017, down 13% from 30.3 million a year earlier and down 2% sequentially. Market share also fell year-on-year by 4 percentage points to 60% as the receding influence of White Box vendors takes a severe toll on the market and branded Android vendors have been unable to fully reclaim this lost volume.
• Windows shipments fell 12% year-on-year at 6.0 million units in Q2 2017, from 6.8 million in Q2 2016. Shipments declined 4% sequentially. Even still, Windows market share stayed steady at 14% year-on-year as more Windows models are launched by traditional PC vendors and mobile-first vendors.
The promise of greater market share and profitability exist for those vendors, operators, and retail/channel partners that can adapt to the long replacement cycles and the hasty exit of unbranded White Box vendors from the tablet market. It is important to remember that the tablet market is still quite young compared to most other market segments; as tablets have matured, we have discovered that the replacement cycle is much closer to that of PCs than of smartphones, resulting in years of market decline after the industry peaked in 2014. Customer demands for higher quality, stronger content integration, and lower prices have pushed unbranded White Box vendors to consolidate or exit the market as profit margins shrink to unsustainable levels.

This is why strategies must change to unlock greater market growth and reach customers are hiding in plain view but are unimpressed with their current choices. By determining how competitors are positioned in the market, how to improve tablet portfolio/pricing, and which channels can improve market performance, industry players can be empowered to successfully approach the market and find the right customers.
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