Is Apple Inc. (AAPL)’s Falling Tablet Market Share Cause for Concern?

Page 1 of 2

It looks like iPad hegemony is on the decline. Market researcher IDC has just released its preliminary estimates on tablet shipments in the fourth quarter, and Apple Inc. (NASDAQ:AAPL) is giving up some ground in terms of market share as competition escalates.

Apple Inc. (NASDAQ:AAPL)The iPad maker’s share of the booming market is now just 43.6%, a sequential decline from the 50.4% share it grabbed in the third quarter. Google Inc (NASDAQ:GOOG) Android is gaining ground, but not all of those unit shipments are benefiting the search giant directly, since Amazon.com, Inc. (NASDAQ:AMZN) ranked No. 3. Barnes & Noble, Inc. (NYSE:BKS) has now cracked the top five with its Nook tablet, which also runs a heavily modified, or forked, version of Android.

Vendor Q4 2012 Shipments Q4 2012 Market Share
Apple 22.9 million 43.6%
Samsung 7.9 million 15.1%
Amazon 6 million 11.5%
Asus 3.1 million 5.8%
Barnes & Noble 1 million 1.9%
Others 11.6 million 22.1%
Total 52.5 million 100%

Source: IDC. Figures may not sum due to rounding.

A year ago, Apple Inc. (NASDAQ:AAPL) had a market share of 51.7%, so in percentage terms that’s a big drop. However, remember that the broader tablet market is exploding, and soared by 75% in units to 52.5 million. Since tablet adoption is on the rise, a drop in market share can still come with a big jump in iPad units sold. Apple Inc. (NASDAQ:AAPL) shipped 22.9 million units in the quarter, a 48% increase from a year ago.

Make room for Sammy
Much like how Samsung has made progress in the smartphone market, it’s doing the same in the tablet market. Some of the South Korean company’s gains come from Microsoft Corporation (NASDAQ:MSFT) Windows 8 tablets along with its usual fare of Android gadgets. Samsung saw total unit shipments skyrocket from 2.2 million in Q4 2011 to 7.9 million in Q4 2012, enough to grab it 15.1% of the market.

The new Kindle Fire HDs were also bound to be a big hit, following in the success of the first-generation model. Amazon’s Android tablet saw 6 million units move during the holidays, which is more information than you’ll get from the company itself other than its claim about it being the “#1 best-selling, most gifted, and most wished for product.” Investors want actual unit figures, Bezos, and they’ll get them one way or another.

Good news and bad news
Asus has also become a major player, thanks to its partnership with Google making the Nexus 7. The 3.1 million units that it shipped ranked Asus the No. 4 vendor with a 5.8% market share. Perhaps more importantly, if you cross-reference that total with CFO David Chang’s statements in November that the company is now building approximately 1 million Nexus 7 units per month after ramping up production, that suggests that the Nexus 7 comprised the vast majority of Asus’ tablet units during the fourth quarter.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!