Decline in Tablet Shipments

As Apple rides a cresting wave in the stock market with its market cap now dancing around $700 billion, a dark cloud moves in from IDC. The analysts report today that full-year iPad shipments will decline for the first time in its history, amid a sluggish market overall for tablets.

Apple — which ironically now offers more models of its iPad tablet than ever before — will ship 64.9 million iPad tablets in 2014, a decline of 12.7% on the total number of shipments a year ago. The bigger tablet market will see shipments of 235.7 million units, growth of 7.2% over 2013.

This is a big drop in growth. As a point of comparison, tablet shipments between 2012 and 2013 grew 52.5%.

Google’s Android operating system, following in the footsteps of its prevalence in the smartphone market, will continue to remain the most popular operating system for tablets. This year, it captured nearly 68% of the market, working out to almost 160 million devices shipped.

But this is not the whole story for OEMs. While Android will continue to keep its place as the leading operating system, Apple, with 27.5% market share, remains the single-biggest brand in the tablet market. IDC tells me that in Q3 specifically, Apple’s iPad had a 22.1% share.

So why the reason for the decline in tablet shipments? IDC appears to echo the observations of analysts like Gartner, who have been pointing out that tablets are following a sales cycle more akin to PCs than smartphones (fitting since it’s PCs that tablets are believed to be replacing).