Sales of Ap­ple’s ipad fall as An­droid-based de­vices gain

China Daily (Hong Kong) - - BUSINESS / COMPANIES - By MENG JING mengjing@chi­nadaily.com.cn

China’s best- sell­ing tablet com­puter iPad saw its ship­ments to the coun­try be­tween April and June dras­ti­cally halved from the pre­vi­ous quar­ter as Ap­ple Inc’s com­peti­tors, both in­ter­na­tional and Chi­nese, build up mar­ket share.

Ship­ments of the tablet in China were down from about 3.04 mil­lion in the first quar­ter of the year to 1.48 mil­lion units in the sec­ond quar­ter, with its mar­ket share in the coun­try shrink­ing from 49 per­cent to 28 per­cent dur­ing the same pe­riod, ac­cord­ing to statis­tics from In­ter­na­tional Data Corp, a global mar­ket in­tel­li­gence firm.

Ap­ple’s prod­uct is still No 1 in terms of mar­ket share in China’s tablet com­puter sec­tor but rapidly in­creas­ing sales num­bers from ri­vals have led to a more chal­leng­ing mar­ket for it.

“The mar­ket share of An­droid-based tablets, such as Samsung, is grow­ing rapidly be­cause there is a much big­ger user base that is al­ready fa­mil­iar with the sys­tem be­cause of the smart­phones they use,” said Dickie Chang, a Hong Kong- based an­a­lyst with re­searcher IDC, told China Daily on Wed­nes­day.

Chang said Samsung Group took sec­ond place in China’s tablet com­puter mar­ket in the sec­ond quar­ter with its share surg­ing to 11 per­cent from 6 per­cent a quar­ter ear­lier. China’s Len­ovo Group Ltd was third with ship­ments of its tablet com­put­ers more than dou­bling from the quar­ter ear­lier, tak­ing 8 per­cent of mar­ket share in the same pe­riod.

How­ever, Chang said with the launch of the new iPad 5 this au­tumn, pre­dicted by in­sid­ers, sales of Ap­ple’s tablet are ex­pected to rise.

“I think Ap­ple in­ten­tion­ally re­duced the ship­ment of iPads in the sec­ond quar­ter. They need to pro­tect the in­ter­est of those who just bought the iPad 4. Be­cause with the ar­rival of the new iPad, the price of the older gen­er­a­tion will fall dra­mat­i­cally,” he said, adding no one wants to spend a lot of money on an iPad but find its price shrink­ing overnight

Unit: mil­lion

Unit: per­cent be­cause a new one has ar­rived.

The fall­ing sales of the iPad in the sec­ond quar­ter also led to the slow growth of the whole tablet com­puter mar­ket in China. Ac­cord­ing to a re­port re­leased re­cently by the Bei­jing- based re­search firm Analysys In­ter­na­tional, the to­tal ship­ment of tablet com­put­ers in China in the sec­ond quar­ter in­creased 5.6 per­cent from the pre­vi­ous quar­ter. It was the slow­est growth rate since the sec­ond quar­ter of last year.

Wang Jun, an an­a­lyst with Analysys In­ter­na­tional, echoed Chang, say­ing the re­lease of the new iPad will be good be­cause of the large num­ber of loyal Ap­ple fans in China.

“How­ever, re­leas­ing a new prod­uct doesn’t stim­u­late its sales for more than three months. In the long run, I still bet on the fu­ture of An­droid­based tablet com­put­ers,” Wang said.

Be­cause of the large num­ber of An­droid users in the world, more money and re­sources are used to de­velop apps on the An­droid sys­tem.

“It is more prac­ti­cal for peo­ple to buy an An­droid-based tablet com­puter,” he added.

Ac­cord­ing to Ap­ple’s fi­nan­cial re­sults for its fis­cal 2013 third quar­ter, which ended on June 29, the Cal­i­for­nia-based com­pany’s rev­enue in China plunged 43 per­cent quar­teron­quar­ter to $ 4.64 bil­lion. The Amer­i­cas, which re­ported a 3 per­cent in­crease quar­teron-quar­ter in rev­enue, were the only re­gion listed in Ap­ple’s fi­nan­cial re­sults that had an in­crease in sales in the third quar­ter.

The com­pany’s fi­nan­cial re­port said the ship­ment of iPads in the third quar­ter de­clined 25 per­cent quar­teron­quar­ter and the rev­enue from iPads shrank 27 per­cent com­pared with the sec­ond quar­ter fig­ure.

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