Tuesday 3 May 2016

Amazon Gaining Pace in Tablet Industry


Amazon presence in the tablet industry has increased due to the affordable $50 tablet.

The International Data Corporation (IDC) has finally surfaced the numbers pertaining to the performance of the tablet market for the first trimester of the fiscal year of 2016. On a year over year basis, the tablet market has experienced a 15% decline in the first quarter.

In this category, two companies that are said to be industry giants namely Samsung and Apple Inc. have experienced a decline in terms of growth and market share. At this point, Apple is still on top of the list by shipping 10.3 million units in contrast to the first quarter of 2015 where they shipped 12.6 million devices. Apart from that, the iPhone maker observed a 18.8% decline in terms of year over year growth where its market share has gone down from 27.2% to 25.9%.
Apart from that, Samsung succeeded in shipping almost 6 million units in the first trimester of FY16 in contrast to 8.3 million gadgets in the same tenure last annum. The smartphone giant observed a 28.1% decline on a year over year basis where its market share has gone down from 18% to 15.2%.

However, on the other hand, it has been a great quarter for Amazon.com Inc. since it has accelerated to be a part of the top three vendors in the fraternity. The reason behind the company’s substantial growth is due to its $50 Fire tablet. The company has been successful in shipping 2.2 million units of the Fire tablet which has attributed to an instrumental 5421.7% year over year growth.  The market share of the company has also increased from 0.1% to 5.7% which is a great sign for them.

Irrespective of the fact that the Fire tablets have become a big hit but the E-commerce giant has a long way to go to stand on par with Samsung and Apple.

This quarter has been extremely unpredictable since, Microsoft was not just a part of the list. The PC sales all over the world have gone down tremendously for obvious reasons but the company has covered the downfall through the hybrid tablets belonging to the Surface range.
As per a report by the IDC, "Microsoft arguably created the market for detachable tablets with the launch of their Surface line of products, with the PC industry in decline, the detachable market stands to benefit as consumers and enterprises seek to replace their aging PCs with detachables.”

The reason behind the decline in the tablet market increased after the launch of gadgets that had a bigger form factor. Since the smartphone market has transformed to big screens, the industry would have not observed a significant decline in the tablet sales. Now users are more comfortable with using their phablets instead of tablets since they serve the same purpose more or less. Considering that the innovation has become extremely stagnant, the ratio of coming up with new features has become quite restricted and it is also said that new features will not be added at least till the coming year.