The first quarter of 2011 was a rough patch for tablet sales. Following strong sales over the 2010 holiday season, the start of 2011 was very much a polar opposite. According to IDC, first quarter tablet shipments were down 28 percent sequentially, largely due to iPad shipments that were “well below expectations.” Is this the first sign we’re facing a tablet bubble or was Q1 2011 just a bump in the road?
Thinking back to the start of 2011 we recall a time fresh with iPad 2 rumors and Android tablet announcements. The year kicked off with more than 40 Android Honeycomb tablets announced at CES 2011. The first of which, the Motorola Xoom, would not be released until mid-February. Meanwhile in Apple’s corner, the iPad 2 launched in early March. Consumer anticipation for both of these tablets clearly influenced demand in early 2011.
Early 2011 tablet shipments have taught us two important lessons. First, the market demands a cutting-edge product. Once the rumors and announcements begin to flood the Internet, the gateway is open and current devices are no longer in the lime light. The second lesson is that tablets are not like smartphones, impulse buyers are a scarcity. The simple fact that pricing of tablets competes with entry to mid-level laptops demands serious consideration when purchasing a tablet.
So did we just hit the tablet bubble? Not exactly. Consumers are simply smarter and doing more research instead of falling prey to impulse buys. When the iPad was released it was essentially a one-of-a-kind device, though plenty of tablets existed before it. In early 2011 we knew its replacement was coming alongside a full-scale Android tablet assault. The second half of 2011 will be nothing like the first.
IDC has raised its full-year shipment estimates to 53.5 million tablets, up from 50.4 million. The firm has high hopes for the iPad 2 and Android tablets. In fact, Android tablets were the only winners in the first quarter of 2011, growing by 8.2 points to 34 percent of total shipments. With an estimated 53.5 million tablets shipped in 2011 we are far from a tablet bubble. The first quarter of 2011 was a bump in the road and proof that the tablet market is not indestructible.
