Samsung reportedly cuts tablet outlook as demand just isn’t there

May 16, 2014
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Samsung may be the manufacturing king of Android devices, but even this behemoth suffers from the natural fluctuations in the market. According to Korean sources, the company is not looking at a very bright year in tablet sales, forcing them to make preparations for the plummeting numbers.

Partners and suppliers have reportedly been notified of lower manufacturing numbers in 2014. The company is expecting to sell under 60 million tablets this year. Though this may appear to be a huge number, it’s much lower than the 70-80 million Sammy targeted before. It’s also abysmal compared to the 100 million units the company aimed for in 2013.

Samsung… it’s not you

Samsung is not the only one suffering. The industry has been dreaming of the day when tablets would completely replace desktop and laptop computers. Tablets have become very successful as desktop computer replacements, but the industry is not seeing this invasion spread as fast as expected.

Market research firm Gartner believes tablet market share will grow by 38.6% this year. Though tablet market share continues to grow, this number is very alarming if we compare it to last year’s 68% in growth. It’s just not a great time for tablet manufacturers.

All Samsung Tablets TabPro NotePro 2014 CES

Revenue is not helping, either

While Samsung tablets sell more than any other Android tablets, revenue is not as high as Samsung would like. For example, Samsung sold about 12.8 million tablets during Q1, about 30% less than Apple. They only made about $3,4 billion in revenue, though, less than half what Apple made.

Even if Samsung were to sell as many tablets as Apple, they won’t make the same amount of money, simply because Samsung sells more cheap and mid-range tablets.

Samsung tablets in the near future

samsung premiere 2014 invitation

We can only hope Android tablets become more popular as demand for larger mobile devices rises over personal computers. Samsung, and all other manufacturers, will continue to make worthy devices and it seems Samsung is in the right track.

We all have our preferences. Some of you may prefer other manufacturers, but Samsung’s upcoming tablets are looking promising. The Korean giant is getting ready to hold a Galaxy Premiere event next month, where they will announce multiple tablets. These will come in various sizes, colors and configurations, making sure there is something for everyone in the pool.

Comments

  • Salman Thaw

    What we need is more Touchwiz tablets with more hardware buttons.

    • joser116

      lol, I hope you’re being sarcastic.

      • Salman Thaw

        lol, I am. I think their best tablet to date is the Nexus 10.

    • BruceLeeRoyJenkins

      If I hadn’t bought the Xperia Z Tablet last year I’d totally buy the Z2 Tablet. It’s not the sharpest tablet, but it’s color reproduction is excellent. All wrapped up in the one of the thinnest, lightest, best looking, waterproof body out there. Samsung doesn’t understand that tablet are for entertainment purposes, and not to replace a laptop.

      • RZ

        Are you sure? Coz that makes less reason to buy a tablet. I don’t wanna buy expensive tablet just for entertainment.

        • BruceLeeRoyJenkins

          Of course tablet are for entertainment, what else would you use a tablet for? Samsung saying that a tablet can replace a laptop is just silly. Entertainment is what they’re really for, you can do some work on them for your job or business, but it is certainly not a laptop alternative.

          • Raaj

            Sure! And it is so totally not related to the entire PC industry is taking a king-sized boot to the ass!

            Dude! Wake up and smell the coffee!

          • BruceLeeRoyJenkins

            I’m sorry are you agreeing or disagreeing, I’m a little confused. It’s prolly just me reading it wrong

          • Raaj

            I am disagreeing with you. Sorry if I wasn’t clear. But the entire PC (including laptops, netbooks etc) industry went into a nose dive because the tablets went straight to their jugular. As a great marketing strategy, tablets took out the most of the features of a PC, added ease of use to it with substantially great battery life. With the evolution of mobile processors, more and more complex tasks came to be made possible on a tablet and the entire concept of a large touchscreen which won the people over was the final nail in the coffin!

            But then again, with the humongous drive towards “phablets”, is what will save the PC industry ultimately. Because on any given day a choice between a large screen phone and a small screen tablet will never be won by the tablet and that is what is happening now and why the tablet sales are somewhat losing steam (as compared to last year sales). They still beat the PC industry hands down.

            And I disagree with you on your view that Samsung doesn’t understand the tablet market as much as Sony (as in your case) did. Samsung is still the largest manufacturer and seller of tablets globally. Whatever slowdown they are facing is not because Sony or for that matter any other manufacturer ate into their sales. It is because the entire tablet industry is slowing down. This does not mean that Sony or any other manufacturer has found a unique way to increase sales. Everyone is losing out.

            And probably Samsung will be the first to provide a radical solution that appeals to the masses as a whole instead of winning the hearts of a few, as it happened it your case.

            This is an expression of views and not intended as an attack on your personal choices. To each his own and I am happy you have found your perfect solution.

          • BruceLeeRoyJenkins

            I still believe tablets are for entertainment, they pretty much just emulate what you do on your phone minus the calls and texts. The thing is no one has set any real bar in the tablet space. There isn’t a lot about tablets in general to have a huge footprint within the electronic market.

            With nothing to set it apart between phones and laptops most people just don’t bother. It’s not just that they have to set tablets apart from phones and laptops, but they need something that pulls people in. A tablet can in no way compete with what a laptop can do, and it is no way near as portable as a phone. It’s hard to even wonder why tablets even exist.

            I use my tablet just for entertainment, music, games, movies, all sort of crap I do on my phone. The tablet world is stuck at a crossroads, either find a way to stand out, or go the laptop way and help restore the PC industry.

            Finding a way to restore the tablet ramp up the tablet industry is going to be hard. Quite frankly I don’t care who does, as long as it gets done. Plus it wouldn’t help having the same apps on Android devices being optimized for their tablets.

          • Raaj

            Cheers!

          • BruceLeeRoyJenkins

            I totally get your point, I just think tablets are sort of in that limbo. Where it could go in any direction, but no one currently knows what that direction is. I do like the multi window tasking on Samsung devices.

          • K2

            PC’s went into a nose dive not just due to tablets but a slowing global economy, win8, incremental improvements in chips year over year and a close to PC market saturation.

            PC’s still have their advantages over tablets, like a keyboard (still more conveniant for work related tasks and typing, for most people ), bigger screen (better for watching videos,,movies for many people) more powerful processors. While tablets have their advantages, PC have their advantages too.

          • Michael Vieux

            I think what’s happening to the PC market is that many people used a PC because there was no alternative.

            Now that a Tablet that can do what they primarily used a PC for, they buy a Tablet instead.

            Simpler interface and dedicated apps that don’t require any real training.

            The PC market is going to be for businesses and people that need the power of a PC.

            I’m writing this on my 8″ Samsung tablet that has replaced my laptop, and goes everywhere I go ☺

          • K2

            Just because it replaced the PC for you, it doesnt mean it does the job of a PC for everybody else.

          • Michael Vieux

            Sorry, that was kinda the point I was trying to make.
            And agreeing to your original post.

            Many people who would have purchased a PC found they could do what they wanted on a tablet.

            People who need the power of a PC continue to buy them.

            Desktop sales went down as laptop/notebook sales went up.
            PC sales overall went down as tablet sales went up

            The market is just correcting itself.

          • K2

            PC’s are bought not just for power, but also for stuff like the keyboard, larger screen size for doing work etc

            PC’s are mostly used on the desk rather than in the hand. So the large size dint become negative for them.

          • krym73

            Bluetooth keyboard, Note Pro 12.2, Etc..

          • Azeem

            I could never replace my desktop with a tablet. I find no use for a tablet in my life. I can never play the games I like on a tablet (Rome 2).

          • filaos
          • Michael Vieux

            Nice article, the best part was a link to the Beastgrip camera mount for phones
            http://www.beastgrip.com/
            Amazing

      • whateverdude3450

        i agree i just bought a laptop and given the choice i would always buy a laptop , how many tablets come with dvd burners and decent keyboards

      • Will S.

        A lot people don’t do anything more than web browsing, social networking, videos, music, email and some games on their laptops. For them a tablet will be perfect over a laptop.

    • Bryan Z

      I wish my Nexus 5 had touchwiz…. NOT!!

      • Chris

        Irrelevant…..

  • http://petercast.net Peterson Silva

    No, it’s not thrilling, even for Samsung enthusiasts, to hear there are more sammy tablets coming. This means more hardware to support, which usually means poor to zero support when it comes to upgrades.

  • vikings football

    just too many tablets in a given year…for instance, for the past 2 to 3 yrs, ive bought atleast 3 tablets/yr…i no longer can afford to buy a new tablet in such a short span. just bought the new note pro 12.2 and will keep it for atleast til early next year. not looking to buy a tablet til then, but im looking to buy another android smartphone in the ending part of the year. i currently have the sony untra z gpe and is waiting for the next phablet to be released, maybe the galaxy mega 7? i dont need the latest and greatest specs, i just need something to surf the web, check emails, google voice texting, and unlimited video data consumption with tmobile…for me, an all in one smartphone that has a bigger screen the better.

    • Gary W

      I am curious, why did you buy 3 tablets per year?

      • vikings football

        the same reason why i used to buy 2 android smartphones a year…i just like tech in general. im sure im not alone in this one.

  • Shubham Singh

    really “They only made about $3,422.7″

  • garroodo

    What’s AA bitching about now? You mean to tell us Samsung is having trouble with their increased tablet sales and expanding market share???? You guy should share a thought on the “others brand” who is having trouble selling their phone & tablet LOL Those are the one really in trouble (I am looking at you> Sony & HTC etc…)

    • BruceLeeRoyJenkins

      I don’t think there’s not much else to say about Sony or HTC. At most it’s either a increase or decrease in sales, but not a lot. I would love to hear how the other OEMs are doing, but Samsung is the the largest Android manufacturer, increasing or decreasing sales could be big for the other OEMs.

      It’s kind of like an avalanche, what happens at the top could end up rolling down and affecting everyone below. But I totally get your point.

  • _X_

    I dont know why people complain that Samsung is flooding the market.

    Tab 4 is the low rage tablets
    Note Tablets are mid range tablets
    Pro line is top range tablets
    S range is premium and more of an experiment

    I think it is awesome that Samsung makes tablets for every need. I wanted the Note but could not afford it, but I still wanted Samsung, thus I got the Tab 3 10.1….not a great tablet, but it is very nice

    • vikings football

      well, if you could afford the tab 3 10.1, you couldve gotten the note 8.

  • Zimmerman

    I don’t even see a purpose of an ipad if my Note 3 does everything and more (calls, data, etc on one account).

    • Michael Vieux

      Not everyone can afford a nice Note3. ☺
      The purpose for my first tablet was for business use.
      It’s hard to show a client a series of photos and proposed solutions on a phone.
      A laptop at a table at a restaurant was intrusive, a tablet, just right.

      • Zimmerman

        Good reason

  • Otto Andersson

    Tablets right now are just oversize phones. I hated my Nexus 10 when I first got it. Only after rooting it and customizing the rom to be more tablet friendly was I more impressed with the possibilities of tablets beyond play toys.

    Android is great, but it pulled a windows 8 with the whole tablet thing. One size does not fit all. Give the user mulitouch gestures for navigation, work windows, better mouse and keyboard support. Stop putting a high res camera on the back, and have just one camera on the front for quality video calls.

  • Jenny Fernandes

    Demand or competition bit.ly/1n6DCz2

  • David Starkie

    This decline is probably more due to the fact that phablets are becoming more and more popular (and more widely acceptable). There’s also only so much you can do with a tablet, and battery life is never going to be as good as a laptop.
    Also, Samsung have just over saturated the market with their huge selection of products.
    I think we need some definition between screen sizes for products, for example, phones between 4.3″ to 5.3″. Tablets 8″-10″ and that’s it. Phablets really aren’t necessary in my opinion. However, that being said, manufacturers don’t need to cover every inch in between with a Tab 4 for example, in 8″, 9″ and 10″ forms.

  • Kass

    This may be heresy to say but, the tablets with the best chance of thriving in the long-term are x86 (Intel/AMD) tabs – actual laptop replacements such as the Surface Pros of this world.

    With such large and capable smartphones available nowadays, it makes less and less sense to pay top-end money for just a “multimedia” tablet (something that even a £200 tablet can do quite ably).

    A proper full productivity targeted tablet is where the industry should head towards.

  • Sophia Patel

    I think nexus 10 is best tablet.

    http://www.windowindia.net/help-power-xl.html

  • Ivan Budiutama

    It would still have a long time for a tablet to replace PC (either laptop or desktop) and well I quite agree that people use tablet mostly for entertainment and in some case *cough* iPad *cough* it’s clear some use them for well.. Social status? Well some may argue that bringing 10″ Tablet is much more practical than 14″ and 3 KGs Laptop. But let’s be fair, is that really the case? Now my fellow friends, do this: go to your nearest Starbucks, see how many people firing up their iPad and take a peek. Are they using the iPads for emails? No. Are they using their iPad for eBook reading? No. Are they doing some Video conference? No. Most of them will be at their facebook page, or twitter or instagram. Hell, you’ll find people using their Tabs (any tablet) for Candy Crush rather than actually replying some important mail or do some documentation combined.
    So, if you asked me, what a tablet is? freakin $400 Facebook and Candy crush machine.

    • Mozaik

      You clearly lack knowledge on this and r just trolling.

      • Ivan Budiutama

        really? trolling? I thought people are entitled to their own opinion. We got different opinion and suddenly I’m trolling?

        I know I’m gonna regret this but here is a detailed. Now, the article clearly stated about Tablet replacing PC or laptop at the very least. In term of mobility sure, tablets are better. I mean they are lighter and comes in smaller dimension.

        No, I’m not talking about how good it is for Samsung to offered almost Notebook experience using Tablet hybrid that is Note Pro, it’s even better comes with Stylus, what can be wrong right?

        First, that is not the problem, the problem that is most customer doesn’t see it as productivity tools. This situation is even more bitter as the software (apps in modern references) is still very minimum. Yes the attached keyboard is a great idea (in Note Pro), yes the specification is great even comes with a stylus, which can be used a lot in presentation or making a rough sketch for brainstorming, I can see myself using it a lot (if not for the hefty price), but that is not most people see. When people see Tablet, most of them only see them as social media tools, and this most people is actually greater in number at least here where selfie stick sold like a hotcakes while only 1 out of 20 people own Tablet (excluding me) knows how to use Google Drive (the gap can be far worse in real, since there are more people understand tech functionality in my field of work).

        Second, to what extent? Office work at the very least may replace notebook, but like previously said, people invest on Selfie stick more than they willing to learn how to use Google Drive. Can tablet replace my virtual database for client simulation? with its 16 GB (or 64 GB)? which I use a lot? In term of graphic design, can it replace the more solid software like 3ds Max or Maya or Photoshop? Even if the software exists, will it have enough power to run those as it is on laptop? My laptop can run 3ds Max, in case you are wondering. In gaming, can it run DotA 2? or Fallout 3? or Batman Arkham Asylum even in lowest setting?

        So, Like I said all is possible, but the road is ridiculously too long and too steep especially in Android with too few Android software that are optimized for Tablet (see here: http://time.com/81907/sony-xperia-z2-tablet-review/ ), even when we look at Apple’s iPad, it still a long way before it replaces Laptop at the very least,

        • Mozaik

          Give me a laptop with 10+ battery life with retina display , with quality tablet apps , with great portability and easy to hold anywhere and everywhere.

          • krym73

            Rofl Retina haha

          • Mozaik

            Ok “uhd” display.

    • Chris Funz

      Do you live in Indonesia? That’d explain your story a lot. That said, we can’t say that’s the case in other countries where people are using it for many other purposes (ie. e-reader, web-conference, work-related tasks, etc) and a tablet is not considered a luxury item. I myself am somehow guilty of charge here, although I consider myself somewhat more technologically-advanced than your regular Joe considering I use my phone/tablet to run my small online business.

      • Ivan Budiutama

        Yes, yes that is the case. Your case is a very rare one. But yes, I use my gadgets to do my works. But here in SE Asia at the very least, your case or mine are rare, I can’t really tell about how it is on other countries but I got a feeling it might be more similar.. but who knows.

    • Michael Vieux

      Don’t know about Starbucks, I’m a Dunkin Donuts type.
      But I see tablets being used in business all the time..
      Heck even the Hot Dog vendor in Ballston Square took payments with his Ipad and Square. ☺
      You can’t go to a business meeting, large or small without half the people taking notes and referencing info on tablets.

      Just because some people use a tablet for fun, doesn’t mean they aren’t also great tools for creativity and work

      Not necessarily for heavy work, but there are many legitimate uses for a tablet in large and small businesses.

  • jake

    It doesn’t seem that way as their tablet share is the highest it’s ever been and they keep churning out new tablets every few months lol

  • Edge of Surreality

    Most people’s experience with tablets are on an iPad, which is a very limited format compared to other tablets, especially those made by Samsung. Apple’s lack of expanding the capabilities of tablets by basically reissuing the same tech in a slightly different form factor is making tablets the next netbook on the technology scrap heap. Samsung has added multi-user, multi-tasking devices in a range of sizes with screen resolution better than Apple’s. In this way Samsung is not making tablets larger images of their phones, but a device that emulates computer power and works in conjunction with their phones and notebooks. Samsung is even including MS Office capable apps, which are really quite good on their higher end offerings. The problem with Samsung is that shortly after they release a tablet, rumours of new tablets with better specs are leaked, so consumers are confused by so many choices, and that those who do buy feel slighted when 3 months later a new tablet already replaces the model they bought.

    • krym73

      Yes but I’d rather go with Samsung that I know keeps evolving and growing month after month, than waiting year after year for minor long over due upgrades.

  • Will S.

    It’s simply too expensive for consumers to buy tablets every year or two compared to smartphones, a lot of which are sold on pay monthly contracts.

  • Chris Funz

    No one will make money like Apple in tablet/smartphone market like Apple. They killed it in term of profits and who cares about Android market share anyway when even market leader (Samsung) fell behind Apple. Let’s face it, only Apple can charge another $100 for extra 16 GB of storage. I find it ridiculous, but millions of people certainly not. Anyway, Pro line from Samsung is really a great offering and I definitely love my Tab Pro 8.4. Android has gone a long way in designing its OS for tablets. Now, one can only hope that apps selection for tablets in Play Store will someday match iPad’s

  • Gary W

    I almost mistook the tone of this article with Samsung’s mother.

  • Brandon James Starcevic

    Because everyone has one, their crappy Tab 3

    • Gator352

      I have two 7″ Tab 3’s and while not considered a speed demon, they do what I need them to do. Crappy but yet affordable.

    • Michael Vieux

      I have a Tab 3 8.0, and it’s not at all a crappy tablet.

      I looked at the features of the Tab line before purchase, and for some reason the 8 inch tablet has a better feature set than the 7 or 10 inch.
      Not sure why Samsung didn’t use the same features on all three Tab 3’s, but I’m happy

  • Gator352

    Tablets, phones, laptops, desktops, peripherals, Bluetooth, wifi, SD cards…..I’m going insane!!!!! I’m about to snap and become a hermit in my doublewide banning all tech except for my Yardman Mower.

    • Michael Vieux

      A small herd of sheep will replace that Yardman for you. ☺

      • Gator352

        NO! I want my Yardman! :)

        Although sheep can used for 3 purposes……

        • Michael Vieux

          Don’t go there. ☺