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Apple Tablet Market Share: Apple Tablet Market Share Now Just 39.6%, But There Is Good News

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Apple Tablet Market Share: According to International Data Corporation (IDC), the premier global provider of market intelligence, the tablet market is on the up and up. This should be good news for Apple Inc. (NASDAQ:AAPL), right? With its market leading iPad, the answer should be yes.

Unfortunately for Cupertino, despite strong first quarter sales across the board, things are not going nearly as well for its iPad and iPad mini as it has in the past.

Before we get into Apple’s numbers, let’s take a closer look at the market as a whole.

The study shows that worldwide tablet shipments are taking off, growing an impressive “142.4% year over year in the first quarter of 2013.”

During the first quarter of 2013, tablet shipments reached 49.2 million units. For a better idea of just how big that number is, consider this: it is more than the entire first half of last year.

Apple Inc (AAPL)First, let’s start with the good news for Apple Inc. (NASDAQ:AAPL). The iPad manufacturer beat IDC’s projections, “shipping 19.5 million units compared to a forecast of 18.7 million units.”

Tom Mainelli, IDC Research Director of Tablets, added the following:

“Sustained demand for the iPad mini and increasingly strong commercial shipments led to a better-than expected first quarter for Apple. In addition, by moving the iPad launch to the fourth quarter of 2012, Apple seems to have avoided the typical first-quarter slowdown that traditionally occurred when consumers held off buying in January and February in anticipation of a new product launch in March.”

So, what is the problem? Why are things not looking as good for Apple Inc. (NASDAQ:AAPL) moving forward?

Here is the issue: Apple’s market share as of quarter 1 of 2013 is 39.6 percent. This is still a large piece of the pie, but not nearly as impressive as the 58.1 percent of the market that it held last year at this time.

It goes without saying that when Apple Inc. (NASDAQ:AAPL) loses market share, other companies are gaining. One such company is Samsung, which saw its share rise from 11.3 percent during the first quarter of 2012 to 17.9 percent in 2013.

If another year goes by and Apple continues its slide, it will be interesting to see just how close Samsung can get.

Right now, the Apple iPad is still top dog in terms of market share. But the company better be careful, as competitors are trying to chase it down.

For more information, review the chart, courtesy of IDC, on the next page:

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