Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

Here's My Theory For Why Tablet-Market Growth Just Collapsed ...
Business Insider ^ | 05/12/2014

Posted on 05/12/2014 12:58:10 PM PDT by SeekAndFind

As recently as a couple of quarters ago, analysts were convinced that tablet growth rates would be stratospheric forever, or at least until a few billion people had one.

Apple, it was said, was no longer going to be "the iPhone company." It was going to be "the iPad company." And analysts were frantically calculating how much money Apple was going to coin once it was selling more iPads than iPhones.

Well, those forecasts aren't looking so promising anymore.

Tablet growth has slowed sharply over the past few quarters. And tablet growth at Apple has hit a wall.

TabletShipmentsVendor

BII

chart of the day ipad sales

Business Insider

Analysts have several theories for why growth in this recently ballistic market has suddenly tanked. They cite "increased penetration rates," "high price points," and "lack of innovation," for example.

And all those factors are indeed likely contributing.

But here's what I think is the real reason tablet growth has cratered:

Tablets do not yet solve a pressing need that is not already solved by a laptop or smartphone.

Put differently, there's no clear reason yet to own two or three expensive personal-computing devices. You can accomplish just about everything by owning one or two. Some people can get by with only a smartphone, especially now that smartphone screens are much larger than they used to be. (And if people have to own only one device, that's what they're going to own—a smartphone.) Others need two devices. For some people, the best two-gadget combination will be a smartphone and tablet. For others, a smartphone and laptop or desktop.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Computers/Internet
KEYWORDS: ipad; sales; slowdown; tablet
Navigation: use the links below to view more comments.
first 1-5051-56 next last

1 posted on 05/12/2014 12:58:10 PM PDT by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind

something tells me that this family does not have the $79 Kindles... no way...


2 posted on 05/12/2014 1:05:39 PM PDT by latina4dubya (when i have money i buy books... if i have anything left, i buy 6-inch heels and a bottle of wine...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

I got an I-Pad as a gift about 18 months ago....I love it, but I find it is really for entertainment. There is no place for file storage, like a computer, so I use both.


3 posted on 05/12/2014 1:05:52 PM PDT by kevslisababy
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
True. I use the tablet only when I'm away from the house and not carrying a laptop. It is easier to carry than a laptop and power supply. But I don't use it when I've got a real keyboard available.

/johnny

4 posted on 05/12/2014 1:06:44 PM PDT by JRandomFreeper (Gone Galt)
[ Post Reply | Private Reply | To 1 | View Replies]

To: kevslisababy
I plug a 16 Gig micro SD card into my Samsung android and store plenty of files.

/johnny

5 posted on 05/12/2014 1:08:51 PM PDT by JRandomFreeper (Gone Galt)
[ Post Reply | Private Reply | To 3 | View Replies]

To: SeekAndFind

The real reason is the drop in discretionary spending money.


6 posted on 05/12/2014 1:11:11 PM PDT by MCF (If my home can't be my Castle, then it will be my Alamo.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: latina4dubya

I love my kindle it was more like 179 bucks but it is now my favorite bathroom buddy


7 posted on 05/12/2014 1:13:04 PM PDT by al baby (Hi Mom…)
[ Post Reply | Private Reply | To 2 | View Replies]

To: MCF

Bingo


8 posted on 05/12/2014 1:13:43 PM PDT by al baby (Hi Mom…)
[ Post Reply | Private Reply | To 6 | View Replies]

To: SeekAndFind

Also convertibles and hybrids I don’t think count as tablets...so those are probably hurting the trending in this chart.


9 posted on 05/12/2014 1:13:53 PM PDT by for-q-clinton (If at first you don't succeed keep on sucking until you do succeed)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

IMO innovation (or the lack of) is killing tablets. Most tablets boast slower processers and poorer cameras than their same-brand, same-generation smartphone counterparts. Screen size is the only practical differentiator.


10 posted on 05/12/2014 1:14:03 PM PDT by Alex Murphy ("the defacto Leader of the FR Calvinist Protestant Brigades")
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Here’s my take. Phone demand remains constant because phones go through more wear and tear and get outdated more quickly. I almost always NEED to replace a phone every two years because I wear it out. I have a two year old iPad right now with zero need to upgrade.

I think the author has a point, too. There isn’t a NEED for tablets in the same way as phones. A husband and wife may decide they need two phones, but many will have one tablet. Or none.


11 posted on 05/12/2014 1:14:05 PM PDT by ilgipper
[ Post Reply | Private Reply | To 1 | View Replies]

To: MCF

The real reason is the drop in discretionary spending money.


I think that really is a major factor that nobody is talking about. It may be that it HAS hit the saturation point for those who can afford one...


12 posted on 05/12/2014 1:16:37 PM PDT by cuban leaf
[ Post Reply | Private Reply | To 6 | View Replies]

To: ilgipper

To attract business customers, tablets, including the iPad, need to support the needs of business rather than forcing business users make concessions to the device’s functional limits. While there are certainly plenty of tablets in use in corporate environments, it’s not always a happy marriage.

I will concede that there are a few tablets and tablets with detachable keyboards that are aimed at business users. But even if the uptake in business use were to grow substantially, it wouldn’t necessarily be enough to kick start tablet sales.

What’s needed there as many observers have noted is something more. There needs to be a useful new feature that makes business users suddenly decide in mass that they need to upgrade.

Unfortunately, it’s not clear what that something might be. Right now, tablets are a sort of technological one-trick pony. They do what they do nicely, but that’s all that they do. While you can force a tablet into new roles, that doesn’t make it a happy fit.


13 posted on 05/12/2014 1:17:53 PM PDT by SeekAndFind (If at first you don't succeed, put it out for beta test.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: for-q-clinton

Also convertibles and hybrids...


Um. This thread isn’t about cars.


14 posted on 05/12/2014 1:18:06 PM PDT by cuban leaf
[ Post Reply | Private Reply | To 9 | View Replies]

To: MCF

I think you hit the nail on the head. I have noticed it in another type of business also.


15 posted on 05/12/2014 1:20:24 PM PDT by Foundahardheadedwoman (God don't have a statute of limitations)
[ Post Reply | Private Reply | To 6 | View Replies]

To: SeekAndFind
We need one device, a tablet with a phone built in so you can use a Blue-Tooth for your built-in-Phone. A friend who goes to Europe claims they have one for his work their, I can't remember which brand.

I don't have room in my pockets for a phone, kindle, tablet, Franklinm Planner and a laptop. Give me something akin to an electronic Clipboard that does laptop/tablet functions and a phone and be done with it. Also allow a flexible membrane-ish keyboard and an pen or mouse option for us troglodytes :-)

16 posted on 05/12/2014 1:20:54 PM PDT by taildragger (The E-GOP won't know what hit them, The Party of Reagan is almost here, hang tight folks....)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

World economy tanking and with it the disappearance of discretionary income. No surprise people spend less on items like this.


17 posted on 05/12/2014 1:21:00 PM PDT by aMorePerfectUnion ( "I didn't leave the Central Oligarchy Party. It left me." - Ronaldus Magnimus, 2014)
[ Post Reply | Private Reply | To 1 | View Replies]

To: JRandomFreeper

When we travel I carry my laptop and she carries an I-Pad, I do not like the I-Pad.


18 posted on 05/12/2014 1:21:52 PM PDT by Dusty Road
[ Post Reply | Private Reply | To 4 | View Replies]

To: SeekAndFind

This is a prime example of using charts to make something that is good look bad.


19 posted on 05/12/2014 1:22:48 PM PDT by Raycpa
[ Post Reply | Private Reply | To 1 | View Replies]

To: cuban leaf

Funny.


20 posted on 05/12/2014 1:23:35 PM PDT by for-q-clinton (If at first you don't succeed keep on sucking until you do succeed)
[ Post Reply | Private Reply | To 14 | View Replies]

To: SeekAndFind

Saturation is the enemy of any market. Who needs a faster and faster tablet when the one they have surfs the net just fine?


21 posted on 05/12/2014 1:24:06 PM PDT by CodeToad (Arm Up! They Are!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Raycpa

Huh? What’s good about it?


22 posted on 05/12/2014 1:24:36 PM PDT by for-q-clinton (If at first you don't succeed keep on sucking until you do succeed)
[ Post Reply | Private Reply | To 19 | View Replies]

To: SeekAndFind

It is a bulky camera, a lousy computer, and can not take the place of a phone.

Other than that it is a hybrid looking for a problem. A smart phone can do almost everything a tablet can and is more portable. A laptop can do tons more and is only a bit more bulky and a desk top can have a screen of limitless size and storage.

It is great to watch TV and video when you don’t have a TV or computer.


23 posted on 05/12/2014 1:27:17 PM PDT by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

I’m still using an iPad-1 and have felt no need to upgrade. I still consider my desktop PC to be my “real” computer, and use it for heavy duty use (music editing, movie editing, transferring files to the iPad via iTunes, etc.). I use the iPad to surf the web when I’m outside on the deck smoking a cigar, or when I travel. I use it for Kindle/iBooks when I travel, read comic books on it, etc. Still don’t need to upgrade it.


24 posted on 05/12/2014 1:28:49 PM PDT by Sans-Culotte (Psalm 14:1 ~ The fool says in his heart, “There is no God.”)
[ Post Reply | Private Reply | To 1 | View Replies]

To: All
Upon issuing a tablet at work, one of the first questions my user asks is whether or not I can purchase them a keyboard for it.

We went through a little tablet phase here, but found that netbooks for light internet-only users and notebooks for power users works best.
25 posted on 05/12/2014 1:29:36 PM PDT by mmichaels1970
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

One potential reason might be that one can get a laptop for the price of a tablet.


26 posted on 05/12/2014 1:30:43 PM PDT by plain talk
[ Post Reply | Private Reply | To 1 | View Replies]

To: JRandomFreeper

Thanks, I don’t know why I didn’t think of that!


27 posted on 05/12/2014 1:33:29 PM PDT by kevslisababy
[ Post Reply | Private Reply | To 5 | View Replies]

To: cuban leaf; MCF
The real reason is the drop in discretionary spending money. I think that really is a major factor that nobody is talking about. It may be that it HAS hit the saturation point for those who can afford one...

Right on, guys. Discretionary spending is dropping, forcing all kinds of retailers to close stores or go out of business entirely. Who needs an iPad when you can barely make rent or fill your gas tank?

28 posted on 05/12/2014 1:34:19 PM PDT by backwoods-engineer (Blog: www.BackwoodsEngineer.com)
[ Post Reply | Private Reply | To 12 | View Replies]

To: SeekAndFind

I still don’t have either one.


29 posted on 05/12/2014 1:34:48 PM PDT by Rebelbase (Tagline: optional, printed after your name on post)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

G


30 posted on 05/12/2014 1:36:48 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
I got the very first Samsung tablet (10.1") in 2011.

I've looked at the newer versions, but the one I have is still great for my needs, so I don't see a reason to buy another one just yet.

Maybe the "analysts" incorrectly figured that tablet users would be like iPhone users... compelled to upgrade every single time there's a new version.

31 posted on 05/12/2014 1:40:51 PM PDT by Cementjungle
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

I have a kindle on which I read books, play games and surf FR. I do prefer the desk top computer for FR when I am home. I am, however, burned out on electronics. I have a cell phone, but limit it’s usage to texting ahd phone calls. But, it’s almost summer and nothing beats actually being outdoors in nature. A tablet, can’t allow one to commune with nature, you just have to put it down and walk outside to do that.


32 posted on 05/12/2014 1:41:19 PM PDT by tioga (WFTD...be there or be square.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Tablets are toys. They don’t really have much practical use at all. The few businesses I have seen with them (mainly restaurants), it takes forever for the waiter to type in or select the order, when they could write it down easier and quicker. Some guys I work with use them, mainly audio guys who can control the board as they walk around the room. Not very professional/practical, more just a cool toy to use with everything.

They aren’t big enough to do many tasks, so you need a laptop or bigger. They are useless for gaming, except for phone games like tetris or fruit ninja. They are too big to take the place of your phone, and aren’t nearly as portable.


33 posted on 05/12/2014 1:41:23 PM PDT by Svartalfiar
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
I bought Mr. RightField a Samsung tablet when he was in the hospital two years ago. He loves it, and uses it to read his email and play games. When we travel we take my laptop, his tablet, my smart phone and his old flip phone. We get along fine for long trips in the motorhome. The smart phone doubles as a hotpot when we occasionally are not within range of wifi.

The tablet does exactly what he needs it to do, and relieves us of having to take two computers on the road. But I don't envision us replacing it unless something really fabulous hits the market.

34 posted on 05/12/2014 1:42:29 PM PDT by RightField (one of the obstreperous citizens insisting on incorrect thinking - C. Krauthamer)
[ Post Reply | Private Reply | To 1 | View Replies]

To: plain talk
One potential reason might be that one can get a laptop for the price of a tablet.

Excellent point. I just got a new Acer with Windows 7 and a 750 gig hard drive for $375.

35 posted on 05/12/2014 1:44:17 PM PDT by RightField (one of the obstreperous citizens insisting on incorrect thinking - C. Krauthamer)
[ Post Reply | Private Reply | To 26 | View Replies]

To: SeekAndFind

Here’s my own theory:

1. Everybody that was going to buy one has now bought one.

2. For the casual user, they can be more difficult to operat than a PC, and then they find out that tablets are basically toys.

3. For power users, tablets have always been nearly useless.

In other words, tablets were just another form-factor fad, following in the footsteps of “netbooks”, only less useful.

I always get a kick out of my friends bringing over their shiny new tablets to show off, except they’re always “still learning how to use them”, or never actually manage to show me something “cool” they can do, like answer an email or even do a quick google search, or if they do, it’s like watching Wade Messer on “Justifed” dial 911 on a cell phone, mouthing the numbers out loud while in deep concentration with his tongue poked out of one corner of his mouth as he laboriously pokes out “911”.


36 posted on 05/12/2014 1:45:40 PM PDT by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
Since we are talking iPhones, I have a question. I just cracked my iPhone 4s. I like that my iphone/ipad sinc, but my phone internet is so slow. I hear not to get the iphone5s because it has problems. My son suggested something different like the Samsung notes 3, but it's the size of the original cell phones of 20+ years ago, only thinner. I have sprint, so I'm limited. Anyone love their sprint phone?
37 posted on 05/12/2014 1:50:04 PM PDT by Linda Frances (Woe to those who call evil good and good evil, who put darkness for light and light for darkness.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

I was offered a free Samsung Tablet at Verizon this weekend as part of a Mother’s Day promotion (and I’m a male.) My only cost would have been 10.00 a month to add it to my account and I didn’t even want one.


38 posted on 05/12/2014 1:50:31 PM PDT by Average Al
[ Post Reply | Private Reply | To 1 | View Replies]

To: MCF
Yep-- after tax disposable real incomes adjusted for inflation are plummeting as food, utilities, rent, etc., see double digit percentage price increases and taxes keep going up.

If a government wanted to adopt a set of policies deliberately designed to pauperize the American people it's hard to see how anyone could do better than the current policies of unfair "free" trade combined with high corporate taxes, regulations and restrictions on resource extraction.

39 posted on 05/12/2014 1:52:04 PM PDT by pierrem15 (Claudius: "Let all the poisons that lurk in the mud hatch out.")
[ Post Reply | Private Reply | To 6 | View Replies]

To: pierrem15

No, no, no. It’s Global Warming that’s affecting tablet sales. See, people are worried about their tablets breaking from increasing temperatures. Many people have accepted the fact that their tablets will break from rising temperatures and have decided to hold on to theirs until it overheats. Their hope is that new replacement models will be more heat-resistant.

/AP


40 posted on 05/12/2014 2:07:41 PM PDT by Justa
[ Post Reply | Private Reply | To 39 | View Replies]

To: RightField

If I might ask - where did you find one with win 7? I thought most force you to get win 8 now.


41 posted on 05/12/2014 2:15:32 PM PDT by plain talk
[ Post Reply | Private Reply | To 35 | View Replies]

To: SeekAndFind

Because the specs don’t grow very fast, so there’s not much compelling reason to replace your old one until it actually breaks.


42 posted on 05/12/2014 2:16:04 PM PDT by discostu (Seriously, do we no longer do "phrasing"?!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: MCF

Speaking of The Obama Economy is not allowed.


43 posted on 05/12/2014 2:19:02 PM PDT by John W (Summer of Recovery VI: This Time We're Serious)
[ Post Reply | Private Reply | To 6 | View Replies]

To: SeekAndFind

Yep...


44 posted on 05/12/2014 2:23:07 PM PDT by Dead Corpse (Tri nornar eg bir. Binde til rota...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: backwoods-engineer

“Right on, guys. Discretionary spending is dropping, forcing all kinds of retailers to close stores or go out of business entirely. Who needs an iPad when you can barely make rent or fill your gas tank?”

Bingo! You have nailed a very large % of the reason tablet sales are dropping off.

My wife and I for years have enjoyed asking people how much their smart phones cost and cost per month and in the past couple of years did the same with the tablets.

Few if any when asked these questions, either know the answers or were willing to tell us.

Families of 4 where the main breadwinner hasn’t had a decent raise in years often have a smart phone for everyone in the family and at least one tablet if not more. They often complain bitterly about the price of groceries, utilities, rent, gasoline and etc, and somehow they justify the very high monthly costs and initial outlays.

The second reason is business wise. The corporate CFO’s may be saying no to tablets. Two young relatives have had that happen. Both are key execs involved daily in critical decisions with two different companies.

Last year, one got the latest I phone and I Pad from his company with everything service wise paid for. At first he used both. Then, he found that he needed his I Pad less and less in the field and hardly ever in the office versus his office PC. His daily use of the I Phone has grown basically every month. He and his peers have the same approach, which is, “If what you want to communicate with me is not one where we need legal documentation, text me via my I phone and expect a quick and simple/short answer. If your need to communicate an issue that is lengthy and could be legal, send me an email and don’t text me. His business use of his new I Pad has dropped to all most nothing. His use of his IPhone increase each week, and it has made his job much easier time wise and response wise.

Last week, he was told that his company will discontinue the service on the I Pad, this 1 July, the start of their new fiscal year. He can give his I Pad to his kids or keep it at home for fun and games.

The other brother had an old android phone and service paid for by his company. At the first of last year, he was given an I Pad by his company last year with a full Verizon service and told to use it for business and personal use.

At the first of this year he got a new I phone with a full service with no limits contract paid by his company. It was stressed that he use the I Phone where possible versus the tablet. This first of this month he was told when his I Pad service runs out at the end of this calendar year, his company will not renew the service. He can keep the I Pad, but he will have to pay for the service on his own. The monthly contract + overage cost for his IPad are well over $100 per month. He will use his Comcast WiFi with his pad at home, and his new I phone with the service paid for by his company will become his main digital communication tool. His I Phone takes great pictures, and it is easy to transfer them to his I Pad.


45 posted on 05/12/2014 2:24:09 PM PDT by Grampa Dave ( Herr Obama cannot divert resources from his war on Americans!)
[ Post Reply | Private Reply | To 28 | View Replies]

To: Justa

Many tablets have the hardware for phone use but it is disabled in the US.Galaxy tab COULD be my portable computer with Bluetooth headset except for that.If I tether my smartphone to tablet for bigger screen they want additional fee.


46 posted on 05/12/2014 2:25:03 PM PDT by hoosierham (Freedom isn't free)
[ Post Reply | Private Reply | To 40 | View Replies]

To: SeekAndFind

The Surface 2 Pro is a great alternative. Too bad it is so expensive that it precludes consideration. Keyboard cover sold separately. Office sold separately. Enough memory to make it viable sold separately.

When the smoke clears, it is $1300 plus for a Surface 2 Pro. Microsoft could teach classes in how not to market products. I was in GameStop this Sunday, and they were paying guys to help sell their Xbox One with their new Kinect.

So, a guy with an actual MSFT employee badge was in a mall in Western Wa selling Xbox Ones. That’s all he did all day. Nobody there from Nintendo or Sony.

Hey, you could lower the price and not spend any money on the thousands of employees you deployed to push your overpriced hardware.

Last time I checked the PS4 was cleaning both company’s clocks pretty handily.


47 posted on 05/12/2014 2:28:10 PM PDT by RinaseaofDs (.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Justa

Very funny.


48 posted on 05/12/2014 2:31:11 PM PDT by Dave W
[ Post Reply | Private Reply | To 40 | View Replies]

To: SeekAndFind

A tablet is a great device for media purposes. It works well as a book, magazine, a tv to keep on your desk while working, a game machine, etc.

These functions it does very well. I would say, because I can hold a tablet in my hand far more comfortably than most laptops, it’s more suited for these purposes than any laptop.


49 posted on 05/12/2014 2:32:43 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults)
[ Post Reply | Private Reply | To 1 | View Replies]

To: taildragger

Sony actually has such a device. It’s like an electronic piece of paper.


50 posted on 05/12/2014 2:35:09 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults)
[ Post Reply | Private Reply | To 16 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-56 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson