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Apple’s iPad Market Share Rises in Declining Tablet Market

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Aug. 25 2016, Updated 11:05 a.m. ET

iPad’s falling shipments in 2Q16

According to research firm IDC, worldwide tablet shipments fell by 12.3% YoY (year-over-year) in 2Q16 to 38.7 million units. Apple’s (AAPL) iPad shipments for 2Q16 stood at 10 million units as compared to 11 million units in 2Q15.

Apple’s share in this space rose to 25.8% in 2Q16 from 24.9% in 2Q15. The other top players in the tablet segment at the end of 2Q16 include Samsung (SSNLF), Amazon.com (AMZN), China’s (FXI) Lenovo (LNVGY), and Huawei with market shares of 15.6%, 4%, 6.6%, and 5.6%, respectively.

The International Data Corporation predicts that worldwide tablet shipments will fall by 5.9% YoY to 195 million units in 2016.

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KGI Securities’ expectation for iPad shipments

According to analyst Ming-Chi Kuo of KGI Securities, Apple will ship between 40 million and 42 million iPads in 2016. This amounts to a 16% fall YoY. However, analysts expect revenue to remain strong due to a rise in the average selling price of the iPad Pro.

In the last fiscal quarter, the iPad generated revenues of $4.9 billion for Apple. This represented a YoY rise of 7% despite declining sales. Apple’s iPad and Services segment were the only businesses where revenues rose YoY in fiscal 3Q16.

IDC stated, “Apple’s launch of its second detachable helped lessen its year-over-year decline to 9%, but more importantly it helped raise Apple’s average selling price (or ASP) and revenue. Price reductions on previous generation iPads and the latest Pro iterations are expected to have the same effect for the remainder of 2016 as the consumer and enterprise audiences evaluate their needs.”

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