Apple Inc. Dominates World Tablet Market Share But Loses More Customers to Samsung

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By Reissa Su | May 3, 2014 2:48 PM EST

Apple Inc still dominates the world tablet market share and continues to be the top tablet vendor based on a report by research firm IDC. The report came after Apple's recent Q2 FY 2014 earnings call which revealed that iPad sales are slowing down.

REUTERS/Robert Galbraith
Apple Inc CEO Tim Cook holds up the new iPad Air during an Apple event in San Francisco, California Oct. 22, 2013.

IDC said Apple's share is estimated at 32.5 per cent. Although Apple leads other tablet vendor, the company's market share has declined from its previous share of 40.2 per cent in the first quarter of 2013. The report also revealed that iPad sales fell to 16.4 million from 19.5 million.

Apple surpassed its iPhone sales record in the same quarter in 2013 by selling 6.3 million more iPhones. But iPad sales were lower by 2 million compared to the same quarter. The company posted revenues of $45.6 billion and profits of $10.2 billion which means Apple has earnings per share of $11.62. The figure is higher than the predicted $10.19 per share by the analysts.

CEO Tim Cook said the company's high revenues for Q2 2014 were driven by strong iPhone sales. The iPhone enjoyed high sales in the markets outside the U.S. This means Apple's market share had increased in both emerging and developing markets.

Although iPad sales for the March quarter wer lower by 3 per cent in a year-over-year comparison, Cook urged investors to look at the tablet market closely. He noted Apple has already sold 210 million iPad units. The Apple CEO said the iPad has been the "fastest growing product" in the company's history, but this doesn't mean it has to be that way every quarter.

Meanwhile, Samsung has been aggressive in collaborating with carriers to offer its tablets in package deals with smartphones. The IDC noted that Samsung's tablet share in the last quarter was 22.3 per cent from 17.5 per cent in the same quarter of 2013. In a year, Samsung's tablet shipments increased to 11.2 million from 8.5 million.

Apple may be leading the tablet market, but Samsung is not far behind. Apple's market share has declined in a year but Samsung has increased its numbers. Analysts said Samsung may have been taking Apple's tablet customers despite the fact that Samsung sells different types of tablets.

Apple's iPad is priced higher than Samsung's Galaxy tabs. In today's market, customers may be looking at price as well as the quality. With Samsung's tablets priced lower, Apple may be losing the battle of tablet market share very soon.

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(Photo: REUTERS/Robert Galbraith / )
Apple Inc CEO Tim Cook holds up the new iPad Air during an Apple event in San Francisco, California Oct. 22, 2013.
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