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