Tablets in Trouble Again – iPad Shipments Decline Further

The world isn’t as interested in tablets as we once were and not even Apple is able to stay perched on top a cloud of fan-boys and drones.

Shipments of tablets worldwide will increase by only 7.2% in 2014, compared to a 52.5% growth last calendar year. In exact numbers this equals a 235.7 million total shipment number for tablets, globally. Amongst this is an IDC prediction of Apple’s iPad sales to sit at 64.7 million total units, seeing a decline of 12.7% comparative to 2013 – this is opposite to their Mac computer and iPhone sales which have reported growth in each area respectively.

Alongside these results, global shipment numbers of PCs and smartphones have seen a rise. We’ve reported on similar stories in the recent past, with a few different theories as to why smartphones continue to rise and tablets are falling. One of the main examples seems to be that due to smartphone screens getting larger (iPhone 6 Plus, Samsung Galaxy Note 4), there seems to be less and less reasons to purchase a tablet for day to day usage. If your phone already has a powerful Intel processor, a 5″ screen, 4G internet and copious applications, is there really a need for you to spend $400+ on a high quality tablet to match it? People are starting to think not.

Tim Cook, Apple CEO, has reportedly expressed hope that iPad shipments will be back in the green year-on-year, but so far it’s simple not the case. However, Apple personally are expecting a possible boost through an enterprise partnership with business kings IBM – set to deliver mobile devices customized with cloud, management and analytical software.

The predicted growth ranging up to the year 2018 is expected to sit at around 5.4% total, however an addition of Windows 10, Google OS and Apple’s new technologies may see this alter slightly.

Information thanks to PC World
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OBJ

Samsung Losing its Lead in China Smartphone Market

Thanks to Chinese website t.qianzhan, we’ve learned that the kings Samsung are almost being dethroned. Since opening up their sales in China back in 2002, Samsung smart phone market share has seen a significant decline in recent years. Currently sitting at 13.5% of the market share, Chinese-Domestic brand Millet has almost caught up with a rating of 10.8% and Lenovo is close on it’s heels with 10.7%.

We’ve been reporting of the Chinese smart phone market being in some hot water. Sony’s sales have drastically plummeted and the Chinese public have shown that they are starting to lean towards the cheaper domestic made offerings, rather than shelling out the money for the big company offerings. As according to China’s mobile phone market quality monitoring report 2014, here’s what the second quarter of phone sales looked like:

  • Samsung 13.5% (Dropping from 15.4% in Q1)
  • Millet 10.8%
  • Lenovo 10.7%
  • Huawei 8.3%
  • Apple 6.9%

Although Samsung is still sitting at the top, they’re on a steady decline – dropping 1.9% from Q1 to Q2 alone. Samsung’s original market dominance is said to be due to their wide range of phone offerings – trying to supply many different models suitable for consumers of various pay grades and needs. However, this adds a premium cost to their whole product line, especially when they’re the number two spender in the world for research and development, as we reported yesterday.

Apparently their constant release of copious smartphone models has been causing a large amount of friction in local Samsung offices, constantly trying to compete with Chinese-Domestic brands like Millet but being frustratingly unable to do so due to the locals low-overhead and domestic dominance. We will continue to report on the seemingly-broken Chinese smart phone market as the story develops.

Image courtesy of TechMac

Sony Mobile China in Turmoil

Recent times have seen Sony’s Chinese Mobile branch go through a large amount of employee lay-offs and follow a similar suit to Samsung in losing ground to Chinese-based companies.

This news doesn’t come as a large shock, we’ve reported recently of Chinese-domestic brands like Millet selling 1.62 million phones over a non-stop 72 hour period, alongside news of the whole Chinese Mobile market being in a significant decline.

The main issue that these companies are facing is said to be due to their ‘premium’ pricing, as is seen through most big business offerings (see: Apple). The public are now seemingly refusing to spend the extra few hundred dollars to buy the big-brand’s latest tech, choosing to go for the much cheaper domestic option instead. As according to Chinese-based website MyDrivers however, this is largely Sony’s fault – claiming that these external competitors only helped accelerate their decline.

Alongside issues with their tight marketing budget, Sony is said to be going about pushing their phones in the wrong way. We’ve seen reports that Sony phone counters have disappeared in many main Chinese cities, they’ve been also expressing a lack of appreciation for the social media market and providing a lesser product mobile to their competitors. Sony have been said to believe their products will ‘sell themselves’ which, given the information you’re currently reading, is not true- they’re not Apple.

MyDrivers has also claimed that the local service for Sony’s tech offerings was poorly handled. Free applications given to Western consumers are often blocked by the high-security Chinese government, making the ‘premium’ purchase price for an Xperia Z mean that much less. Alongside this, there has been reports of major internal fighting within the Chinese company branch – all of this amounting for a poor sales showing year on year.

One other major issue that was pointed out is the pricing issues that Sony experienced with their Xperia Z. Being released at 4,999 yuan ($815 US), Sony decided to cut their price majorly after just one month down to 4,299 yuan ($700 US) and a further drop to 3699 yuan ($600 US) was seen just 30 days later. The issue here is that it cheapens Sony’s image – Can you imagine how mad you would be, purchasing a product on release for $815 US, only for it to be retailing for $200 US less in just 60 days time?

Sony is not giving up the fight for the Chinese market, we will report as the story develops.

Image courtesy of Chiphell