Apple, Worldwide Tablet Sales Fell in Q4, IDC Says

Hype about the launch of the iPhone 6 and 6 Plus last fall took a toll on sales of iPads in Q4 for Apple, which shipped 4.6 million fewer tablets versus the previous-year quarter, an industry research firm said. Apple had a 17.8 percent shipment decline over Q4 2013, to 21.4 million units in 2014 Q4, a Monday report​ from IDC said. Apple CEO Tim Cook said last week when releasing quarterly results that the iPhone was the star of that quarter (see 1501280031). The company expanded its iPad lineup by keeping around older models and offering a lower entry price point of $249, but the strategy “wasn't enough to spur iPad sales given the excitement around the launch of the new iPhones,” Jitesh Ubrani, IDC senior research analyst, said. Apple’s efforts to maintain iPad momentum “have fallen flat” because the latest generation of iPads offer “very minimalistic upgrades over their previous versions,” IDC said. "Cannibalization at the bottom from the iPhone and at the top from the Mac appears to be a serious issue for the iPad.” Worldwide tablet shipments, meanwhile, had a year-over-year decline for the first time since the market's inception in 2010, IDC said. It said overall shipments for tablets and 2-in-1 devices slipped 3.2 percent, to 76.1 million in Q4, compared with 78.6 million for the 2013 period. "The tablet market is still very top heavy" because Apple and Samsung are largely carrying the market each year, Ubrani said. Fifth-place Amazon had the steepest annual volume decline of the top five tablet vendors, IDC said. Despite a product refresh at the end of September with the Kindle Fire HDX 8.9 and 7-inch Fire HD, holiday sales tumbled nearly 70 percent compared with 2013, IDC said. Of the top five, it said that only Lenovo, in a distant third place, had growth in Q4, boosting tablet shipments by 9 percent to 3.7 million units for 4.8 percent global market share. IDC forecasts growth for the tablet category in 2015, Jean Philippe Bouchard, research director-tablets, said. Potential growth contributors include Microsoft's new operating system, a shift toward larger screen sizes and “productivity focused solutions,” along with technology innovations such as gesture control, he said.