Tablet Market Falls 9% in Q4 2016 with Apple, Samsung Down Double Digits

The associated report is published here: http://sa-link.cc/TabletsQ42016

Peter King, Service Director, Tablet & Touchscreen Strategies service said, "Amazon has broken out of its unique seasonal patterns with the majority of its tablet sales occurring in Q4 to a more balanced approach all throughout the year, which speaks to the success of its low-cost, feature-rich Fire 7. While Amazon's play is to bring more users into its ecosystem for incremental revenue, we believe other technology companies can mimic this success as the tablet still holds strong entertainment value."

Eric Smith, Senior Analyst, Tablet & Touchscreen Strategies service added, "2-in-1 Tablets are a hot market segment but price remains a key factor in consumer behaviors around PC and Tablet replacement devices, which is evident in lower shipments of iPad Pro and Surface Pro 4 devices in the quarter. Apple cut prices on its iPad Air 2 and iPad mini 4 models but introduced no new iPad Pro models or pricing during the quarter, leading to 4% ASP decline year-on-year. Microsoft has not released a major refresh of its Surface Pro or Surface Book devices in over a year, which has given its OEM partners and other mobile-first companies a chance to catch up with high-performing, lower cost Surface clones."

Tablet Market Results by Vendor

The tablet business at Apple and Samsung has improved during 2016, but growth is still in negative territory while White Box vendors are leaving the tablet market for more profitable, high-growth product segments, shifting attention to the wearables, connected audio, drones, and VR markets. Meanwhile, Lenovo has bounced back and forth between positive and negative growth in 2016, ending the year with growth even as its Asian archrival Huawei also experienced high growth in Q4 2016. Finally, Amazon has achieved strong sales of its $49 7-inch Fire Tablet and its newer new $89 8" Fire HD Tablet (with the inclusion of its popular Alexa digital assistant software), reaching a broad range of consumers looking for an entertainment tablet with key content tie-ins to the growing Amazon ecosystem.

Tablet Market Dynamics by Operating System

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Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com 

US Contact: Eric Smith, +1 617 614 0700, [email protected]
UK Contact: Peter King, +44(0) 1908 423 615, [email protected]

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