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Apple iPad + Samsung Tablet Sales Smashed As Sales Slump

Apple iPad + Samsung Tablet Sales Smashed As Sales Slump

The downturn is on top of the 10% decline reported in the first half of 2014. Last week JB Hi Fi CEO Richard Murray said that sales at the mass retailer had been hit by falling demand for tablets when he reported a 5% decline in overall sales.  

According to DisplaySearch tablet display shipments to Apple and Samsung fell 34%.

While the two companies had a 42% share of tablet panel shipments in first-half 2013, their combined share dropped to 29% in first-half 2014.

“As the tablet category matures, Apple and Samsung are facing new growth challenges,” said Brian Huh, senior analyst for small and medium displays for DisplaySearch. “The tablet leaders have been dealing with an increase in large-screen smartphone sales, a slowdown in the consumer replacement cycle, and greater competition from white-box brands and other low-cost tablets.”

Total tablet panel shipments to Apple were just 31 million in first-half 2014, down 14% on year. During that same period, 14.7 million panels shipped to Samsung, down 29% on year.

In fourth-quarter 2013, Apple launched its new high-end iPad series, with the 7.9-inch iPad mini Retina display and the 9.7-inch iPad Air. Panel shipment levels were increased to satisfy new-product demand and year-end seasonality. However, since the beginning of 2014, demand rapidly decreased, which forced LG Display, Samsung Display, Sharp, and AU Optronics (AUO) to ship fewer panels than previously planned.

Samsung also focused on the high-end tablet segment, led by the Galaxy Tab, Tab Pro, and Galaxy Note Pro devices; however, like Apple, panel shipment demand also decreased significantly in the first half of 2014. Samsung released new products, like the 8.4-, 10.1-, and 12.2-inch WQXGA (2560 by 1600) panels, in first-quarter; however, demand did not keep pace with previous market expectations. Furthermore, mid-level tablet panel shipments for Samsung’s 7-, 8-, and 10.1-inch WXGA (1280 by 800) products also declined, which caused JDI, Samsung Display, and BOE to reduce tablet PC panel production in 2014, the firm added.