Tablets

As mentioned on an earlier Happy Hour podcast, I have a giant collection of iPad styluses, having tested dozens of them since the first iPad debuted in 2010. Earlier this week, my colleague Zac Hall reviewed the best (and most expensive) iPad stylus, Apple’s brand-new $99 Apple Pencil, which is hard to find in stores, and only works with the 12.9″ iPad Pro.

Since the Apple Pencil is two to six times as expensive as some other options, I wanted to spotlight its key strengths and weaknesses relative to rivals, all of which are more broadly compatible and readily available to purchase. During testing, I discovered that the Apple Pencil actually benefits from a surprising little Apple software cheat to make an ultra-fine first impression…

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Apple’s iPad continues to lead the tablet market, according to new data from IDC, but its marketshare has dropped a few points year-over-year, and the overall market for tablets saw negative growth, based on units shipped globally. That’s according to second quarter 2015 unit shipments and marketshare over the same quarter a year ago, as Apple shipped 10.9 million units versus 13.3 million units during the second quarter of 2014. While the iPad continues to lead in the tablet space, IDC’s data shows Apple’s market share dropping nearly 3 points from 27.7% to 24.5% …
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Apple’s<a href="http://9to5mac.com/2015/03/29/apple-store-revamp-for-apple-watch-revealed-magical-tables-demo-loops-sales-process/" target="_blank"> upcoming retail overhaul</a> for displaying the Watch

A lot of my techie friends are saying that the entry priced-Apple Watch Sport will be their pick next month, and not because of the exterior look. The theory is that Sport is the cheapest way to experience Apple’s new product category in 2015, and since the second-gen Apple Watch will inevitably be upgraded, why pay a premium this year for nicer materials such as stainless steel and sapphire glass?

Despite the Apple Watch’s desire to marry jewelry with technology, it hasn’t lost the baggage gadgets carry, namely the reality that they’ll be outdated and replaced in a relatively short period of time. If the Apple Watch evolves anything like the original iPad did when it became the iPad 2, the differences could be dramatic.

Personally, when I think about getting more perceived value out of a higher-priced stainless steel Apple Watch rather than testing the waters with the cheaper aluminum model, I’m more concerned with how soon the Apple Watch 2 will be announced rather than how much more functional the newer device could be. No matter what happens with the first-generation model, an Apple Watch 2 will come to market. How will Apple balance keeping the Apple Watch evolutionary momentum going with keeping the first-generation model “modern” for enough time to satisfy early adopters?

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Microsoft shifted its focus when it introduced the Surface Pro 3 last year to target both the iPad and the MacBook, but today the company announced a more consumer level iPad-like version of its tablet simply called the Surface 3 with the same $499 starting price as the iPad Air 2.

Google also unveiled a collection of new competitively priced hardware including new Chromebooks and a Chromebit HDMI running Chrome OS for under $100 …
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IDC is out today with its numbers on tablet shipments for Q4 2014 showing Apple remained on top of the market both last quarter and throughout 2014 despite a slight drop in overall market share.

Apple sold 21.4 million iPads during the holiday quarter last year, which gave the company around 28% market share compared to 33% with 26 million units sold during the same quarter last year. Apple beats out number two Samsung, according to IDC, which grabbed 14.5% of the market in Q4 with 11 million units shipped. Samsung also dipped in overall market share from 17.2% with 13.5 million units shipped in the year ago quarter.
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The latest numbers from advertising company Chitika Insights show that iPad web usage in North America rose nearly 2% in September, marking a slight increase over the third quarter. Chitika found the iPad to have a 79.9% share of tablet web traffic in the United States and Canada during the month, compared to a 78.0% share reported in July.
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<em>Worldwide unit shipments for the top 5 tablet plus 2-in-1 device vendors over last five quarters</em>

New data from IDC tracking worldwide tablet shipments shows that Apple has maintained its lead during the third quarter despite “a decline in overall iPad shipment volume in 3Q14.” Specifically, Apple grabbed 22.8% of the market with 12.3 million shipments during the quarter compared to 14.1 million units and 29.2% share in the year ago quarter. That compares to Samsung at 18.3% of the market and 9.9 million units shipped up from 19.3% and 9.3 million units shipped in the third quarter last year:
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Following its report last month on smartphone customer satisfaction in which Apple ranked first, J.D. Power is out today with its study on tablet satisfaction and is once again ranking Apple highest overall. Apple comes in first followed by Samsung, while Asus, Amazon, and Acer fall in line below the study’s average:

Apple ranks highest in overall satisfaction with a score of 830 and performs highest in all study factors except cost. Samsung ranks second with a score of 822 and achieves above-average scores in the features, styling and design, and cost factors.

J.D. Power notes that a decline in the overall price of tablets has resulted in a decline in overall satisfaction. Apple, however, avoids that by ranking highest in every category except price. The report also provided some other findings on tablet sales, purchasing habits, and brand loyalty for September 2013 to February 2014 when the study took place. 
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Research firm IDC is out today with new data on the state of the tablet and 2-in-1 market in the first quarter of 2014. As you might expect after Apple’s most recent earnings report, Q1 unit shipments of iPad were down by 3 million from 19.5 million to 16.4 million between 2013 and 2014. For its part, Apple attributes its Q1 2013 iPad sales as inflated due to demand for iPad mini in Q4 2012 being fulfilled in the following quarter when supply was less constrained.

That may be, but the iPad also saw a drop in tablet market share between the first quarter of 2013 and the first quarter of 2014. According to IDC’s data, Apple dropped from 40.2% market share in Q1 2013 to 32.5% market share in Q1 2014 while Samsung saw unit shipments increase as well as marketshare. Despite Samsung’s gains, though, Apple still dominates the tablet market more than any other one company leading Samsung by 10 percentage points in market share.
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Update: See bottom of the piece for JD Power’s partial explanation

“Samsung Ranks Highest in Owner Satisfaction with Tablet Devices” was the headline on JD Power’s latest U.S. Tablet Satisfaction Survey, with the above table showing that Samsung taking the lead from Apple by two points.

Yet when you look at the ratings that make up the individual scores, as Fortune did, that isn’t what they show at all. The six scoring categories are Overall Satisfaction, Performance, Ease of Use, Physical Design, Tablet Features and Cost. Samsung beats Apple in exactly one of those categories: cost … 
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Turkish Prime Minister Recep Erdoğan has visited Apple, Google and Microsoft in the run-up to a tender for 10.6 million tablets for use in Turkish schools as part of a major modernization program in which textbooks will be replaced by tablets and chalkboards by electronic whiteboards …
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Just as the Defense Department granted iOS devices approval for use on military networks, TheStreet reports that the U.S. Air Force plans on saving around $50 million through its purchase of iPads. The savings will mainly be due to the ability to cut weight on flights by replacing traditional flight bags and come over a ten year period:

“We’re saving about 90 pounds of paper per aircraft and limiting the need for each crew member to carry a 30 to 40 pound paper pile [of flight manuals],” said Major Brian Moritz, EFB program manager, in a phone interview. “It adds up to quite a lot of weight in paper.”

Removing the need to print and distribute thousands of flight manuals, however, equates to an even greater cost saving. “It comes out to just over $5 million a year,” noted Moritz. “With fuel savings, it comes out to $5.7 million annually in pure cost. When you look at $5.7 million a year, over 10 years, that’s well over $50 million.”

In February of last year the Air Force revealed plans to purchase up to 18,000 iPads as a replacement to traditional flight bags, although at the time it was considering other tablets and looking for the lowest cost of entry possible.

According to the report, the Air Force’s Air Mobility Command now currently has around 16,000 iPads in use with another 2,000 spread across other Air Force members. 
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