Apple is currently not Samsung’s biggest threat in the tablet market

Although they offer a happy medium between phones and laptops, Samsung and Apple both saw a surprising decline in tablet sales in the first quarter of 2024, raising questions about the future of these devices, especially as Chinese players, such as Huawei and Xiaomi, are enjoying a healthy increase in tablet adoption.

In 2023, global tablet shipments declined 17.4% year-over-year in the fourth quarter, the largest decline since 2016. For calendar year 2023, tablet shipments totaled 128.5 million units worldwide, a decrease of 20.5% compared to 2022 and the lowest annual volume. since 2011.

“Without significant improvements in the economy and consumers spending their money on things other than consumer electronics, tablets may not be very high on the priority list,” said Anuroopa Natarajsenior research analyst at IDC Mobility and Consumer Device Trackers.

Recent issues suggest that after more than two years of decline, global tablet shipments showed year-over-year growth of 0.5% in the first quarter of 2024; while that may seem small, sales were around 30.8 million units, but that doesn’t look good for Samsung and Apple.

Samsung vs. Apple vs. the world

Samsung saw a decline in tablet shipments this quarter, with approximately 6.7 million units sold, down from 7.1 million units sold in the same quarter of 2023. Research manager Jitesh Ubrani at IDC points out that this could be due to the slowdown in the economy. “This is primarily due to slowing U.S. consumer demand for tablets, especially high-end tablets,” Ubrani told me via email. “Beyond that, there has also been an increase in PCs, which is stealing wallet share.”

This isn’t for lack of effort on Samsung’s part. Last year, Samsung launched the Galaxy Tab A9, Galaxy Tab A9 Plus, Galaxy Tab S9 FE and Galaxy Tab S9 FE Plus in the last quarter of 2023, followed by the Galaxy Tab S6 Lite (2024) in the first quarter of 2024. According to Samsung’s fourth quarter earnings report, the company is looking to maintain sales momentum by expanding Galaxy AI to existing and new flagships on foldable devices and tablets.

However, Samsung might struggle to keep up with the premium lineup and features that users may find attractive on iPads. Additionally, Ubrani says that even in the mid and lower tiers, Samsung faces competition from Amazon and TCL in the United States.

“To turn this around, Samsung can resort to bundling, which it has done and continues to do with wearables today. Beyond that, enabling new use cases – which is one of the hardest things for tablets to do – or serving niche audiences (e.g. (What the iPad Pro does) is probably the only other way out.”

On the other hand, Apple also saw a similar decline in iPad sales this quarter. Despite being at the top of the list, Apple experienced a slight lull last year, with sales declining 8.5% year-over-year. According to the IDC report, Apple has focused on clearing out inventory of older models before the planned launch of new models. However, it could still ship 9.9 million units this quarter. Ubrani believes that Apple’s recent refresh of the iPad Air and iPad Pro will go a long way and change the situation for the tablet industry.

While Samsung and Apple may be at the top of the rankings, Huawei is in third place this quarter with an impressive 43.6% year-over-year growth and shipments of 2.9 million units. IDC estimates that the Chinese tech giant likely benefited from the resurgence of its smartphone business and increased its market share by 2.8 basis points from last year.

Xiaomi also retained its place in the top five, with a remarkable 92.6% annual growth and 1.8 million units shipped. According to Ubrani, several factors helped the company increase its tablet shipments.

“Xiaomi has focused on promotions and, more importantly, demand in Asia is recovering faster than in the United States. Asia also has lower penetration rates, so an uptick in demand is expected.” The report said that even outside of China, its largest market, Xiaomi saw triple-digit growth in almost every region where it delivers its products.

How can these big players make things happen?

As Samsung and Apple continue to dominate the smartphone market, analysts suggest they need to start focusing on consumer spending habits and trends as they appear to be evolving.

A crucial area of ​​improvement could be innovation, as annual tablet upgrades mainly focus on hardware changes such as faster processors, better displays (iPad Pro’s OLED upgrade), or sleeker designs, but that might not be enough for customers to spend the money. extra money on the shelves.

These tech giants could explore software upgrades, such as implementing AI features, that would address why tablets are purchased in the first place: accessibility and ease of multitasking both on the go. Incorporating features like Galaxy AI into tablets could benefit students, a demographic that could benefit from more accessible tablet options. This would provide a portable computing option with a smart assistant that summarizes lessons or helps them organize their day.

It’s worth noting that this demographic is focused on value. With smartphone prices soaring, consumers are likely more interested in spending less on a tablet, or not buying one at all. That’s where bundles and promotions come in, as Ubrani pointed out, especially for families looking for cost-effective options for kids and teens.

Finally, the sheer number of tablet options available could lead to “decision paralysis.” By considering user needs and budgets, Samsung could benefit from simplifying its lineup while ensuring it continues to introduce unique features that make the choice less stressful. Still, it’s clear that the current strategy isn’t paying off, and Samsung may need to rethink its tablet strategy in the future if it wants to better compete with smaller brands.