IDC reported today that the worldwide tablet market grew 75.3% compared to the fourth quarter of 2011. Even compared to the third quarter the growth was impressive with an increase of 74.3% or 22.4 million units worldwide. The total for the quarter, 52.5 million units worldwide according to preliminary data, is a new record for tablet shipments.
Tom Mainelli, a research director with IDC, attributes the strong growth to new product launches, including Microsoft’s entry into the market, and increased consumer interest in tablet devices. Market leader Apple saw growth of 48.1% compared to the same period last year. The news was not all positive for Apple though as their market share continued to decline, down 3.1% from the prior quarter and 8.1% from a year ago. Meanwhile, Apple’s primary foe, Samsung, saw year-to-year growth explode by 263.0% on the way to grabbing 15.1% of the market while shipping 7.9 million units. Amazon and ASUS both saw impressive gains year-to-year as well, with ASUS tablet shipments growing by an mind-boggling 402.3%. Barnes & Noble saw shipments slip by 27.7%, though they still managed to hold onto the number five spot.
Samsung reported earnings for the 2nd quarter 2011 and came in as expected, but were down. Revenues were up 4% year-over-year to 39.44 trillion won ($37.63 billion), but its consolidated net income declined by 18% to 3.51 trillion won ($3.35 billion).
Telecommunications showed the most growth as revenues rose 45% to 11.69 trillion won ($11.15 billion) and profit came in at 1.67 trillion won ($1.59 billion). The semiconductor business showed higher profits at 1.79 trillion won ($1.71 billion), but down big time year-over year from 2.94 trillion won ($2.80 billion).
“Despite the challenging business environment and global economic uncertainties, we achieved continued year-on-year revenue growth in the second quarter driven by mobile device sales, particularly the success of our smartphones,” said Robert Yi, Vice President and Head of Samsung Electronics’ Investor Relations Team, in a statement. “Heading into the third quarter – which typically sees increased consumer demand for electronics – we expect competition to remain tight, and will continue to enhance our cost competitiveness and technology leadership in the components businesses.”
According to a new report, manufacturers,who have recently invested money into the tablet segment, are now switching their focus back to the development of 4 to 5-inch high end smartphones. According to the report it is the poor sales of the Android-based tablets.
The report states that Samsung was able to grab a 10% share of the tablet segment, but sales from other vendors like Motorola, RIM, LG , and HTC have been flat so far.