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Tablet Sales Are Booming -- If We Don't Count Apple and Samsung
The tablet industry is under significant pressure that won't abate any time soon.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Tablet industry growth ticked up in Q2 of 2014, according to IDC's latest industry report.

But read between the lines and you'll see this market is troubled.

Following Q1's middling 3.9% increase, growth improved to 11% in Q2, primarily due to an easier comparison.



Q1 2014 comped against Q1 2013's 142.4% growth rate, while Q2 2014 was up against a much easier 59.6%. (check the first chart below)

Here are the results by manufacturer:



Excluding Apple (NASDAQ:AAPL), which saw iPad sales drop 9.3% year-over-year, unit shipments grew a solid 21%.

Samsung, as it has been telegraphing [subscription required], hit the wall, with unit shipments rising just 1.6%, a substantial decline from Q1's 32% growth.

If we back out both Apple and Samsung (OTCMKTS:SSNLF), which are relatively high-end vendors, sales increased by 28.5%, which supports the idea that the tablet industry is more of a bargain bin than a hot growth pocket within tech.

It's worth asking: if it wasn't for the never-ending flood of Google (NASDAQ:GOOG) Android models, many of which offer amazing bang for the buck, how bad would things be?

Fundamentally, the tablet market remains challenged by the rise of big-screen smartphones (a.k.a. phablets) -- a situation that will only get worse with the release of Apple's iPhone 6, which is widely expected to have a larger screen, possibly 5.5".

Jean Philippe Bouchard, IDC Research Director for Tablets, also identified "slow commercial adoptions of tablets" as an issue, albeit one that could be rectified by more enterprise-specific offerings, such as in the Apple/IBM (NYSE:IBM) deal.

However, that's a multi-year evolutionary process, not something that will play out next quarter.

To avoid being too gloomy, I'll add that this year's weak numbers will make for easy year-over-year comps next year, and they do give incentives for device makers to push harder in new markets like wearables, which as of now have been mostly disappointing.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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Position in AAPL
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Tablet Sales Are Booming -- If We Don't Count Apple and Samsung
The tablet industry is under significant pressure that won't abate any time soon.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Tablet industry growth ticked up in Q2 of 2014, according to IDC's latest industry report.

But read between the lines and you'll see this market is troubled.

Following Q1's middling 3.9% increase, growth improved to 11% in Q2, primarily due to an easier comparison.



Q1 2014 comped against Q1 2013's 142.4% growth rate, while Q2 2014 was up against a much easier 59.6%. (check the first chart below)

Here are the results by manufacturer:



Excluding Apple (NASDAQ:AAPL), which saw iPad sales drop 9.3% year-over-year, unit shipments grew a solid 21%.

Samsung, as it has been telegraphing [subscription required], hit the wall, with unit shipments rising just 1.6%, a substantial decline from Q1's 32% growth.

If we back out both Apple and Samsung (OTCMKTS:SSNLF), which are relatively high-end vendors, sales increased by 28.5%, which supports the idea that the tablet industry is more of a bargain bin than a hot growth pocket within tech.

It's worth asking: if it wasn't for the never-ending flood of Google (NASDAQ:GOOG) Android models, many of which offer amazing bang for the buck, how bad would things be?

Fundamentally, the tablet market remains challenged by the rise of big-screen smartphones (a.k.a. phablets) -- a situation that will only get worse with the release of Apple's iPhone 6, which is widely expected to have a larger screen, possibly 5.5".

Jean Philippe Bouchard, IDC Research Director for Tablets, also identified "slow commercial adoptions of tablets" as an issue, albeit one that could be rectified by more enterprise-specific offerings, such as in the Apple/IBM (NYSE:IBM) deal.

However, that's a multi-year evolutionary process, not something that will play out next quarter.

To avoid being too gloomy, I'll add that this year's weak numbers will make for easy year-over-year comps next year, and they do give incentives for device makers to push harder in new markets like wearables, which as of now have been mostly disappointing.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
Position in AAPL
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
More From Michael Comeau
Daily Recap
Tablet Sales Are Booming -- If We Don't Count Apple and Samsung
The tablet industry is under significant pressure that won't abate any time soon.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Tablet industry growth ticked up in Q2 of 2014, according to IDC's latest industry report.

But read between the lines and you'll see this market is troubled.

Following Q1's middling 3.9% increase, growth improved to 11% in Q2, primarily due to an easier comparison.



Q1 2014 comped against Q1 2013's 142.4% growth rate, while Q2 2014 was up against a much easier 59.6%. (check the first chart below)

Here are the results by manufacturer:



Excluding Apple (NASDAQ:AAPL), which saw iPad sales drop 9.3% year-over-year, unit shipments grew a solid 21%.

Samsung, as it has been telegraphing [subscription required], hit the wall, with unit shipments rising just 1.6%, a substantial decline from Q1's 32% growth.

If we back out both Apple and Samsung (OTCMKTS:SSNLF), which are relatively high-end vendors, sales increased by 28.5%, which supports the idea that the tablet industry is more of a bargain bin than a hot growth pocket within tech.

It's worth asking: if it wasn't for the never-ending flood of Google (NASDAQ:GOOG) Android models, many of which offer amazing bang for the buck, how bad would things be?

Fundamentally, the tablet market remains challenged by the rise of big-screen smartphones (a.k.a. phablets) -- a situation that will only get worse with the release of Apple's iPhone 6, which is widely expected to have a larger screen, possibly 5.5".

Jean Philippe Bouchard, IDC Research Director for Tablets, also identified "slow commercial adoptions of tablets" as an issue, albeit one that could be rectified by more enterprise-specific offerings, such as in the Apple/IBM (NYSE:IBM) deal.

However, that's a multi-year evolutionary process, not something that will play out next quarter.

To avoid being too gloomy, I'll add that this year's weak numbers will make for easy year-over-year comps next year, and they do give incentives for device makers to push harder in new markets like wearables, which as of now have been mostly disappointing.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
Position in AAPL
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
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