Cheaper Tablets, Larger Phones Seen Taxing Apple, Samsung Dominance

Apple’s and Samsung’s dominance in the “maturing” tablet market is waning, said a report from DisplaySearch. Total tablet display shipments fell 10 percent from the first six months of 2013 to first-half 2014, while display shipments to Apple and Samsung plummeted 34 percent, DisplaySearch said. The market leaders’ combined share of 42 percent for first half 2013, fell to 29 percent over the first six months this year, it said.

"Apple and Samsung are facing new growth challenges,” said Brian Huh, senior analyst at DisplaySearch, citing factors including a rise in large-screen smartphone sales, a slowdown in the replacement cycle and rising competition from white-box brands and cut-rate tablets. Total tablet panel shipments to Apple in first half 2014 were 31 million units, down 14 percent from the year earlier, and Samsung tablet panel shipments tumbled 29 percent year-over-year to 14.7 million units, DisplaySearch said.

Panel makers boosted shipments of 7.9-inch and 9.7-inch panels to meet demand for the iPad mini and iPad Air, which launched in Q4 last year, but post-holiday season demand “rapidly decreased,” DisplaySearch said, and LG Display, Samsung Display, Sharp, and AUO scaled back panel shipments in response to lower demand. Demand also fell off “significantly” for Samsung’s high-end offerings including the Galaxy Tab, Tab Pro, and Galaxy Note Pro devices in first half 2014, it said.

Newer Samsung tablets launched in Q1, incorporating 8.4-inch, 10.1-inch, and 12.2-inch WQXGA (2560 x 1600) panels, but demand lagged on those devices as well. Mid-level tablet PC panel shipments for Samsung’s 7-inch, 8-inch and 10.1-inch WXGA (1280 x 800) products also declined, leading to reduced panel production by BOE, JDI and Samsung Display in 2014, DisplaySearch said.

Meanwhile, AT&T’s promotion combining iPad and iPhone drew plenty of speculation on the Internet this week, as industry watchers angled to peg whether the carrier is trying to relieve inventories of the iPhone 5s or of older iPads by clipping $200 off the price of an iPad with the purchase of a 5s or 5c. Given reports of lower-than-expected sales of both Apple categories this year, it could well be both.

A live chat specialist for AT&T told us the deal runs at least through the end of the month and “may run longer.” The iPhone 6 rumor mill pegs the announcement for the new phone lineup for Sept. 9, with availability later in the month, although other rumors involve delays. The AT&T deal is available to customers who buy an iPhone 5c or 5s under the AT&T Next plan, which offers a phone for a monthly fee that pays for the phone over a specified period users select from 12, 18 or 24 months. The Next plan options are an alternative to contract plans but customers getting the discounted iPads -- an offer good on any iPad, according to the chat rep -- must sign up for a two-year wireless contract for the tablet.