According to TrendForce’s latest report, Breakdown Analysis of China’s Semiconductor Industry, many fabs are being built in China with high capital expenditures...
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“Amazon, Huawei and other more recent market entrants are going to be the main contributors to tablet shipment growth next year,” said Kou-Han Tseng, TrendForce notebook analyst. “Amazon and Huawei want to maintain their 2018 target shipment growths at double digits. Also, Microsoft is planning to launch new Surface devices during the first half of 2018. Google too may return to the tablet market with offerings targeting the education segment. The arrival of new products from a growing number of brands will again spur tablet sales.”
Huawei’s impressive performance in the tablet market in the recent years is attributed to its flexibility in working with channel vendors on promotions. At the same time, Huawei has a large tablet portfolio with product lines targeting various groups of consumers and satisfying their diverse needs.
Huawei’s total annual shipments are projected to top 10 million units this year and surpass Lenovo’s. Huawei is also expected to widen its lead over Lenovo in 2018 as the company continues its aggressive expansion into the tablet market with 50% shipment increase targeted for next year.
When Amazon first entered the tablet market, the company intended to sweep the market with low-price products. Over the years, Amazon has also greatly expanded its other service platforms and related ecosystems. Therefore, Amazon now pushes its branded tablets as primary devices for its members to access the company’s services.
Furthermore, Amazon’s own branded smartphones (i.e. the Fire Phone series) have made very limited progress on the market, so the company has to raise the market penetration of its tablets to satisfy its members’ demand for resources in its ecosystems.
TrendForce’s research indicates that Amazon will again achieve a new record high for shipments of its Kindle Fire tablets this year, with the estimated total between 12 million and 13 million units. For 2018, Amazon is forecast to again grow its shipments by 5% to 10%.
As for iPad devices, the sales of the economically priced 9.7-inch model that was released this second quarter has been strong enough to allow Apple to retain its first place in the annual shipment ranking for 2017. Going forward, TrendForce expects Apple to be able to maintain comparable level of shipments in 2018 even if the company decides not to introduce a new size for the iPad series. Going forward, Apple plans to actively expand iPad’s presence in the education market.
Furthermore, the 9.7-inch model could remain as a major shipment contributor in the coming year because Apple's attractive pricing for this model may trigger a wave of replacement for older iPads that cannot support iOS11.
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