Tuesday, November 1, 2016

Biz Break: Another quarter, another breakdown in tablet sales

Top of the Order:

Going Down (Not So) Easy: It's only been a little more than six years since Apple unveiled the first version of the iPad and kick-started the tablet revolution. Sure, there were others that put out some sort of "tablet PC," as the devices were typically called. But once the iPad was on the market, it was game on as far as the tablet market went.

And rarely has there been a land grab, if you will, with regards to cool, new tech products that boomed so quickly and then … well, "busted" might be too strong of a term, but there is no doubt that the market for tablets is on the wane. Part of that might be the long replacement cycles for the devices, depending on why you use the tablet. For example, that first iPad might not be able to run too many new apps these days, but it can still stream Netflix, which, aside from "Supergirl," is about all my two young daughters want to watch anyway.

But the latest figures on tablet shipments from technology research firm IDC suggest that the devices are still losing ground as people aren't buying them as quickly as they once did. And IDC said it's all part of an ongoing "race to the bottom" for the tablet market.

According to IDC, worldwide tablet shipments in the third quarter fell by 14.7 percent from the same period a year ago, to 43 million units. IDC said the tablet market is feeling the impact of low-cost "slates" or "detachables" that can be separated from a traditional laptop keyboard and used as a tablet. Such devices have "flooded the market," according to IDC, and are changing some consumers' buying plans.

"It may prove detrimental to the market in the long run as detachables could easily be seen as disposable devices rather than potential PC replacements," said Jitesh Ubrani, senior research analyst with IDC. "We're witnessing real tectonic movements in the market, with slate companion devices sold at the low-end serving a broader platform strategy."

Among the leading tablet vendors, Apple still held on to the No. 1 spot, with 9.3 million shipments during the quarter. That amount was down 6.2 percent from a year ago, but Apple's share of the tablet market rose to 21.5 percent from the 19.6 percent share it held in the third quarter of 2015.

Samsung held on to second place with 6.5 million shipments, a 19.3 percent decline from a year ago. Amazon's line of Fire tablets reached 3.1 million shipments, an annual gain of almost 320 percent, and Lenovo and Huawei rounded out the top five tablet vendors in IDC's market study.

Even with tablet shipments down from a year ago, there were some bright spots. Third-quarter sales were up by almost 10 percent from the second quarter of the year, and Christmas is coming, which means tablets will be on many wish lists. If there is going to be a time to upgrade what your kids use to watch Netflix, it may as well be now.

Middle Innings:

Tattletales: It looks like Microsoft and Google are in a bit of a snit after Google threw Microsoft under the bus on Monday. At least that's how Microsoft sees it.

At issue is a security flaw in the Windows operating system that affects how Windows displays graphics. Google put out information about the bug — including that as of Monday, it had yet to be fixed. Google disclosed the flaw after saying that it pointed out the problem to Microsoft a week ago, and that the software giant hadn't done anything about it.

Microsoft, however, said that by making the matter public, Google had put Microsoft customers at risk because the company needs more time to work up a patch to fix the flaw. Microsoft recommended that people use Windows 10 and the company's Edge browser, for the time being. And probably for the foreseeable future, too.

Bottom of the Lineup:

Here's a look at how some leading Silicon Valley stocks did Tuesday …

Movin' on Up: Gains came from Integrated Device Technology, Brocade Communications, Impax Laboratories, QuinStreet and Splunk.

In the Red: Decliners included Super Micro Computer, Glu Mobile, Tesla Motors, NetSuite and Extreme Networks.

The tech-focused Nasdaq Composite Index slipped by 0.7 percent to 5,153.58.

The blue chip Dow Jones industrial average gave up 0.6 percent to finish at 18,037.10.

And the broad-based Standard & Poor's 500 Index ended the day down by 0.7 percent at 2,111.72.

Quote of the Day: "Love is the most important thing in the world, but baseball is pretty good, too." — Yogi Berra. The Cleveland Indians looked to finish off the Chicago Cubs in Game 6 of the World Series in Cleveland Tuesday night.

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Source: Biz Break: Another quarter, another breakdown in tablet sales

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