Skip to main content

How Apple Lost Momentum within the Tablet Market

​There's been a big shift in product category leadership for media tablets in the mobile computing market. At the mid-point of 2013, ABI Research identified a trio of events signaling that the Apple iPad family of products had lost significant market share to the Google Android ecosystem.

During the second quarter of 2013, the number of Android-powered tablets surpassed iOS-based slates for the first time, and tablet-related hardware revenues reached parity.  But the most important event was that the average selling price (ASP) of the iPad is rapidly approaching the market average.

Overall tablet shipments in the quarter dropped 17 percent sequentially, while growing 23 percent year-over-year for the same quarterly period.

"Smaller 7-inch class tablets are finally the majority of shipments," says Jeff Orr, senior practice director at ABI Research.

The 7.9-inch iPad mini represented about 60 percent of total iPad shipments and 49 percent of iPad-related device revenues in the quarter.

Tablet shipments in the second quarter of 2013 achieved revenues of $12.7 billion. For the first time, iPad represented only 50 percent of worldwide end-user revenues -- this was seen as the key turning point.

Apple split the market with all other branded vendors at $6.3 billion in the quarter. Similarly, the change in the vendor landscape can be seen through the ASP of tablets. In the past year, iPad ASPs dropped 17 percent while the rest of market increased 17 percent.

So, why did the Apple product leadership lose momentum in the marketplace?

The iPad drop is primarily attributed to the introduction and volume shift to the smaller iPad mini. They had to compete with the Google Nexus 7, and other similar devices that are very popular.

Apple is still a leader in tablets, though its lineup has now been matched and bested by several competitors in the Google Android ecosystem. This full impact of the shift in demand within the market has not yet run its course. Therefore, ABI has cautioned Apple not to become complacent.

"Twelve months is a long time for the peak lifecycle of a contemporary tablet. To remain a leader, Apple must continue to innovate and address real-world market needs," adds Orr.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

How GenAI is Transforming the Role of CIO

The introduction of Artificial intelligence (AI), and the emergence of Generative AI  (GenAI), are now resulting in two key focus areas for Chief Information Officers (CIOs) and their IT leadership team. "GenAI is not just a technology or just a business trend. It is a profound shift in how humans and machines interact," said Mary Mesaglio, VP Analyst at Gartner . "We are moving from what machines can do for us to what machines can be for us." AI platforms are evolving rapidly from being our tools to becoming our teammates. Gartner predicts that by 2025, GenAI will be a workforce partner for 90 percent of companies worldwide. CIO Leadership Market Development CIOs have a major role in how they shape AI and how AI shapes us. According to recent Gartner surveys of CEOs, enterprise CIOs are their number one choice to unlock the value of GenAI tools. In fact, CIOs and IT executives will prioritize two areas to unleash the possibility of AI over the next 12-24 months – t