The tablet as we know it is reaching paralysis, and here's why
You've been reading it everywhere - tablet sales are plummeting. The first quarter of 2015 is the second consecutive quarter in which tablet shipments are falling. To be more specific, analyst powerhouse IDC says shipments fell to 47.1 million in Q1, which is a 5.9% decline from the same quarter a year ago. Even Apple, the tablet's years-long stronghold, is feeling the recession. According to its Q2 2015 earnings report, Apple sold 21.4 million iPads throughout the period — a sobering 21 percent drop from the same time one year ago.
How did we get to this? It's nothing overly complicated, really. Reality itself is all there's to it!
A moment of change.
The market is saturated
A moment of change.
The original iPad's arrival in 2010 defined the modern tablet and created the market for it. That's quite the accomplishment, but mind you, we're not saying that the iPad is the "first" tablet that it certainly wasn't. But it was the first of its kind that gave users exactly what they, knowingly or not, wanted - light, portable, app-based computing & media on a big touchscreen.
The HP Stream 7 is a $99 tablet that runs the same OS as your laptop. Kind of.
The point of this succinct history lesson is that, over the last couple of years, most users who wanted a tablet, be it from Apple or device vendor X, have already gotten one for themselves, and perhaps even one for their friend, relative, pet, or fiance if they wanted to. The result is a bunch of happy customers representing a market densely saturated with users who already have a tab, are fine with it, and couldn't care less about the new devices on the shelves. That last bit alone is worthy of a closer examination, which we'll do in the coming paragraphs.
Carrier support is weak
Most users, especially those in America and other countries where carriers heavily subside smartphones, don't shop for unlocked smartphones - especially if it's expensive $600+ flagships we're talking about. They sign a two year contract, enjoy their device, and when the deal's up or beginning to expire, most of them feel genuine interest in upgrading to that hot new gadget. Hence, smartphone sales are guaranteed more stability.
A tablet in its natural habitat. Would you like a data plan with that?
If you are marketing tablets for a living, we'd imagine you are quite frustrated. Alas, there's more where that came from...
Lack of innovation
With a few exceptions, tablet announcements from the past two years have been a giant snoozefest. All the iPad has had going on for itself is becoming progressively thinner, along with the usual yearly performance boost. But save for speed, the prettier screen, and the ability to run complex 3D games, there's hardly anything the iPad Air 2 can do for you that even the ancient iPad 2 can't. Both have the same core functionality. That's about to change with iOS 9, though, as the iPad Air 2's ample 2GB of RAM will allow it to pull off some heroic multitasking. But that's about it. Be assured, many will keep holding on to their older iPads and iPad Minis, because they are content with them and cannot justify the upgrade toll.
Is Lenovo the only one who's even trying?
Software seems to be the missing link in the yearly upgrade cycle that nobody seems to talk about.
Moreover, the price differences between low, mid, and high-end tablets are now bigger than the usability differences between them, which makes for a rather poor positioning of premium tablets on today's market.
Slow replacement cycles
Initially, device makers expected users to upgrade tablets like their smartphones, every two to three years on average. Only it turned out that wasn't the case, for a variety of reasons that even a trained astrologist would have had a hard time predicting. We profiled the lack of innovation already – a major contributing factor to slow upgrade cycles. But there's more to it than just that. Generally, tablets are pampered household items. They don't go through the daily grind of living in your pocket, on your desk, and in your car quite like smartphones do. And when you do take a tablet outside, you're usually carrying it in a hard cover case - suitable for a tablet, mostly inconvenient for a smartphone.
This is the Android tablet.
Phablets are filling in for tablets
This is the Android tablet.
Let's not forget the big elephant in the room - phablets! Following the Samsung Galaxy Note's introduction, the phablet has seen nothing short of tremendous success. Each year, more and more devices with screens at and above 5.5 inches per diagonal are contributing to cumbersome rectangular bulges in users' pockets. A study by analytics firm Flurry found that 20% of the 1.6 billion devices it tracks in 2015 are phablets, while this percentage was 6% just a year ago. More evidence? A Forrester Research survey discovered that 41% of global information workers are using a smartphone with a screen larger than 5-inches. 11% of those surveyed told Forrester that their primary tablet is actually a phablet. Heed these words, for we'll return to them later.
Needless to say, somebody has to move away to make room for that kind of phablet growth, and that somebody is the good old tablet - especially where Android is concerned. According to the same data, phablets account for 27% of all Android devices, while tablets powered by the robot Google built have a whopping 3% user base. Where does that leave us? Well, it leaves us at the staggering conclusion that users looking for a big-screen Android device are buying phablets, not tablets. Why is that? Well, for starts, phablets are treated by carriers no different than smartphones, which means they are guaranteed to sell better, even if they too aren't exactly treated to the kind of spectacular innovation that moves people into "shut up and take my money" mode.
Users looking for a big-screen Android device are buying phablets, not tablets.
When there's Android, there's iOS too, so how is the long-in-the-coming introduction of the bigger-screened iPhone 6 and iPhone 6 Plus impacting Apple's iPad sales? Well, a study by the makers of Pocket shows that the surveyed people who own both the iPhone 6 Plus and an iPad reach to the former for their multimedia consumption 80% of the time. That's probably because reaching for the big-screen iPhone in your pocket is so darn convenient. To those 80%, their phablet has become their tablet for all but the most niche intents and purposes. And that's bad news for iPad salesmen.
Conclusion
Starry-eyed journalists and analysts who enthusiastically proclaimed tablets as "laptop killers" have been forced to realize the obvious truth that they have clumsily evaded since the beginning - tablets are primarily multimedia consumption devices with limited productivity options. During the time they've been on the market, nobody that I know of has thrown out their laptop, or kept showing up to work with just a tablet and keyboard dock for longer than a few weeks, before quitting in frustration. There goes the "laptop killer".
The tablet as we know it has ran out of steam.
Moreover, IDC claims that growth in the 2-in-1 device space, occupied by the likes of Microsoft's Surface Pro or Lenovo's Yoga convertible laptops, has been "stunning", despite hybrids accounting for a relatively small market share. They represent good value to those looking to replace their laptop or aren't completely sold on the virtues of a regular tablet. Which makes it clear that the tablet as we know it has ran out of steam, and needs to evolve, adapt, or become something altogether new to sustain itself.
Things that are NOT allowed: