Competition in the tablet market has begun to heat up, and the demand for Android tablets has been hit

The latest research report released by Strategy Analytics pointed out that competition in the tablet market has begun to intensify. Due to falling prices and lack of innovation, it is difficult to attract new consumers to buy, and many Android manufacturers are losing share and revenue. Apple, Huawei and Microsoft each increased their shipments during the quarter, and they together accounted for 40% of the market share. Despite the success of these market leaders, due to the impact of demand for Android tablets, the global tablet market in Q2 2018 decreased by 6% year-on-year to 40.9 million units.

Competition in the tablet market has begun to heat up, and the demand for Android tablets has been hit

Eric Smith, Director of Network Computing Research Services at Strategy AnalyTIcs, said, “Due to business needs and a good product update cycle, after several quarters of weakness in the Windows detachable 2-in-1 computer segment, the market is picking up again. Microsoft Surface Pro The shipment of Surface Book 2 and Surface Book 2 exceeds 1 million, and the lower-priced Surface Go will be launched soon, which will promote the market segment to achieve better results in the next quarter. The price has always been how manufacturers pass the detachable 2-in-1 Computers are a limiting factor in attracting consumers, but as cheaper products such as Surface Go, Qualcomm-powered 2-in-1 computers and Chrome-based 2-in-1 computers enter the market, 2018 will be A year worth looking forward to."

Chirag Upadhyay, senior research analyst at Strategy AnalyTIcs, added, “Apple is using its market size and brand influence to put pressure on its Windows and Android competitors. By lowering prices and adding more product features in each product cycle last year , Apple has regained some market share, and still maintains a strong average selling price with its Pro and standard iPad combination. Android manufacturers need to pay special attention to the gains they lost to Apple in 2018."

Tablet PC market dynamics divided by operating system

In Q2 2018, Apple’s iOS shipments (wholesale) increased by 1% year-on-year and are expected to reach 11.6 million units, and the global tablet PC market share will reach 28%. After a seasonally sluggish first quarter, the market size of Apple's iOS tablet PCs in Q2 2018 increased by 27% from the previous quarter. Before the students return to school to buy season, Apple benefited from the strong sales of its new standard iPad that supports Apple Pencil, which reduced its average sales price to $410 year-on-year.

In Q2 of 2018, shipments of Android tablets dropped to 23.6 million units, a 10% decrease from 26.4 million units in the same period last year, and a 1% decrease from the previous quarter. As white-label manufacturers slowly merge and withdraw from the market, the market share of Android tablets has dropped by 2 percentage points year-on-year to 58%, and many branded Android manufacturers find it difficult to compete on price, especially Apple is willing to lower the price of its iPad. Huawei was the only branded Android manufacturer that grew during the quarter, while Samsung has been focusing on revenue, and Amazon's growth soared in the second quarter.

Windows shipments dropped 2% year-on-year from 5.9 million units in Q2 2017 to 5.8 million units in Q2 2018. Due to student back-to-school and business demand driving this market segment, Windows tablet PC shipments increased by 1% from the previous quarter. Microsoft's newly launched Surface Pro and Surface Book 2 performed better than expected this quarter. This is the second consecutive quarter of double-digit year-on-year growth since Q3 2016. The Windows Tablet PC segment will no longer show sustained growth until there are more excellent mid-to-low-end detachable 2-in-1 computer options. Most personal computer OEMs are responding to this area with lower-cost ultrabooks and traditional notebook computers.

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