Worldwide Tablet Shipments Decline 8.5% in the First Quarter

Worldwide Tablet Shipments Decline 8.5% in the First Quarter
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The worldwide tablet market once again contracted in the first quarter of 2017 (1Q17) with total shipments of 36.2 million, a year-over-year decline of 8.5%, according to preliminary data from the IDC Worldwide Quarterly Tablet Tracker. The first quarter contraction marks the tenth straight quarter that tablets have experienced a decline over the same quarter a year earlier, with the previous five quarters recording double-digit drops.

The tablet market is comprised of two different product categories, which are headed in very different directions as noted by IDC in the past. Devices offering a first-party keyboard, which IDC refers to as detachable tablets, continue to grow for the most part. Many of these devices have quickly grown to resemble products that IDC refers to as traditional notebook PCs or laptops. The other product category is slate tablets (those lacking this keyboard option), which saw shipments peak in 2014 and is now in a steep decline that IDC believes will continue throughout the forecast period.

IDC's outlook is that detachables will continue to far outpace convertibles in shipments, but the market pendulum seems to be swinging back in favor of convertibles if ever so slightly. Still, the detachable market has proven it will move with major product launches and Microsoft and Apple have yet to launch their 2017 salvos.

Apple experienced its 13th consecutive quarter of year-over-year shipment decline despite being the market leader in 1Q17. Apple's results show that it is not immune to the changing dynamics of industry and consumer demand, part of which is due to the ongoing success of its other product lines.

Samsung remained the number 2 tablet provider despite seeing shipments decline 1.1% year over year in 1Q17. Much like Apple, Samsung continues to migrate its tablet portfolio to the detachable segment and to support this the company launched three new products at this year's Mobile World Congress event in Barcelona in February.

Huawei was the only company among the top 5 to experience positive growth in 1Q17 with shipments of 2.7 million, which was up 31.7% from the 2.0 million shipped in the first quarter a year ago. Like Samsung, Huawei has also slowly migrated its tablet portfolio from an Android slate tablet lineup to now include a mix of Windows-based detachable devices

Amazon continues to fluctuate in and out of the top rankings with its low-cost Kindle Fire devices. In 1Q17 the company shipped 2.2 million devices, all of which continue to be aimed at a very aggressive price point with a strategy to drive content and product sales via the device. Amazon seems poised to remain a competitor given its market strategy.

Lenovo rounded out the top 5 with 2.1 million tablets shipped in the quarter. Of all the companies in the top 5, Lenovo is likely best positioned in terms of channel strategy to grow its tablet business and IDC expects to see more of its successful notebook PC lineup migrate into the detachable tablet category. Lenovo captured 5.7% market share in 1Q17.

Top Five Tablet Companies, Shipments, Market Share, and Growth, 1Q17 (Preliminary Results, Shipments in millions)

Company

1Q17 Unit Shipments

1Q17 Market Share

1Q16 Unit Shipments

1Q16 Market Share

YoY Growth

1. Apple

8.9

24.6%

10.3

25.9%

-13.0%

2. Samsung

6.0

16.5%

6.0

15.2%

-1.1%

3. Huawei

2.7

7.4%

2.0

5.1%

31.7%

4. Amazon

2.2

6.0%

2.2

5.6%

-1.8%

5. Lenovo

2.1

5.7%

2.2

5.5%

-3.8%

Others

14.4

39.8%

16.9

42.7%

-14.7%

Total

36.2

100.0%

39.6

100.0%

-8.5%