Canalys: Falling prices breathing new life into laptop market; tablets stumbling

Canalys: Falling prices breathing new life into laptop market; tablets stumbling

Summary: Apple shipped under 13.3 million tablets worldwide in Q2, which Canalys characterized as the iPad maker's weakest quarter since the first quarter of 2012.


Another analyst report has emerged supporting observations that the PC market might finally be stabilizing while tablet shipment growth starts to slow for the first time in months.

Canalys reported on Monday that 123.9 million PCs shipped worldwide during the second quarter, not much growth sequentially but still up 14 percent year-over-year.

But tablet shipments dropped by roughly five percent to just 48.4 million units shipped globally during the three-month period.

The market research firm called out Apple and Samsung, the two largest tablet manufacturers on the planet, for sharper declines — especially on Apple's part.

The iPad maker shipped under 13.3 million units worldwide during the quarter, which Canalys characterized as Apple's weakest quarter (for tablets) since the first quarter of 2012.

Samsung's quarter wasn't as dramatic, but the Korean tech giant only shipped 8.9 million units in Q2.

Canalys analysts pointed toward different factors behind Apple and Samsung's flailing performance, especially pricing on the former's account.

On the flip side, pricing is what's helping out laptop vendors more and more. According to Canalys, higher prices are keeping Apple from expanding into more markets while lower prices on laptops are opening many more doors finally.

Canalys senior analyst Tim Coulling noted in the report that consumers should expect to see these patterns continue "as Microsoft responds to the increasing threat from Google."

"It has dropped licensing costs on small form-factor tablets and announced 'Windows with Bing,' which will provide Windows for free on low-cost notebooks," Coulling continued. "Falling prices are great for consumers but will do nothing to ease the pain for vendors, whose margins are under constant pressure."

Coulling hinted at a warning for tablet vendors, in particular, suggesting a slump in innovation is what is also hampering the mobile form factor. He explained:

The tablet market has quickly found itself in the same position the notebook market was in some years ago, with minimal increases in hardware performance forming the basis for an argument to upgrade. But when considering the most common tasks that tablets are asked to perform, the need for more horsepower is often not evident. Vendors will need to work harder to give reasons to upgrade if things are to improve in Q3. In addition, as smartphone screen sizes increase, the potential for such products to disrupt the market for 7-inch tablets is also increasing.

Chart via Canalys

Topics: PCs, Hardware, Laptops, Mobility, Tablets

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  • Falling Prices Don't Fare Well For The Surface Pro...

    You don't have to be a tech genius to know that $2000 for a semi-laptop/semi-tablet, with a $150 hot-pink keyboard option, with cheap components, and a mobile CPU and chipset is outlandish.

    I could be from another planet and instantly know that the Surface Pro is a bigger ripoff than a Ponzi scheme.
    • Really?

      You are quoting the price for the top tier Core i7 with a 512 GB SSD and 8 GB of RAM. The next model down is around $1550 with a 256 GB SSD but otherwise identical specs.

      Conversely, I just ordered a Surface Pro 3 with i3, a 64 GB SSD, 4 GB of RAM with the keyboard and Office Home Premium for under $1000.

      Pricing is on the high end but they are well spec'd devices with top notch build quality. I didn't even consider anything from their competitors. By the way, they don't have a hot pink keyboard option.
      • Orandy is just trolling. Don't pay him much attention.

        or just agree with him how Doomed Microsoft is.
      • The Good News Is...

        You got that hot pink keyboard you always wanted, now you don't have to verbally tell everyone you're gay.

        The bad news is, we already know that 64GB with Windows 8.x means about 20GB free space.

        Get a big external drive sweetie. ; )
        • It is amusing and sad how terrified you are of a simple color

          As if something hot pink can define you and is something to criticize in others.

          It does beg the question why you must protest against it so much.

          Repressed perhaps?
          • So Now You're A ZDNet Psychiatrist, Emacho...

            That explains a lot. Now all you have to do is get your G.E.D and go to college for 12-years.
          • orandy, you don't need a psychiatric degree to realize

            to realize that the garbage you post here all the time isn't done so to convince us of someting, it's done to appease yourself, as if you see it in writing, even via your own hand, then it must somehow be true.

            Most everone has come to the conclusions that you get off on being a troll, that you get some cheap thrill from it, which is a very sad way to live the life you've been given.
          • Really, it is your words that are doing all the talking here, not mine.

            I simply asked a question based on your comments and seeing how violently you protest it looks like I hit a nerve.

            It is just a shame that you try to criticize people who have suffered discrimination, hate and violence just so you can insult a company that makes software.

            Sad, so very sad.
    • Translation -

      "Why won't MS die?!? They were supposed to do all the wrong things, yet their products are getting positive reviews! I was promised by Mommy they would be bankrupt in 2012! Waaaaaaaaaa!!!!"

      There, I translated it for you since nobody really understands what comes out of your mouth.
  • Canalys: Falling prices breathing new life into laptop market; tablets stum

    More people are realizing that tablets don't get the job done but laptops do. I'll go ahead and say I told you so about the decline of tablets and the fad that they are.
  • The PC Strikes Back!

    I guess the "post-PC" era didn't last very long...
    • I hope this means we'll see a Surface Ultrabook...

      I hope this means we'll see a Surface Ultrabook...
    • Small bump

      The PC era was in some ways already replaced.
      Windows XP end of support helped for sure sales - accordingly to netmarketshare windows 8 usage decreased in the last 2 months while windows 7 increased its share - a good sign that many PCs were sold to enterprises and not so many windows 8 shining new PCs to consumers.
      Tablets suffered with large screen smartphones, I expect growth to return to the normal trend (but less steep).

      Obviously low price laptops are a factor too.
      I think it was a close to perfect period for traditional PCs (XP, win8.1, low price) and a not so good for tablets (smartphones were never so big, no news from Apple, season dependent sales. ..).