Archive for Tablet computing

Tablets are Doomed

Tablets are DoomedTechCrunch reports from Mobile World Congress in Barcelona that tablets are dead. Six years after the original iPad ushered in the post-pc era, there were no tablets at the premier mobile showcase. Companies and consumers have moved on.

iPadTo be fair, TechCrunch says that if you looked hard enough, you could find an Android tablet or two stashed away in a corner. And Apple (AAPL), the tablet leader, doesn’t come to MWC. They conclude that tablets are not the future for Samsung’s (005930) and LGs (LGLD) of the consumer electronics world.

In fact, the author reports that Samsung, Sony (SNE), HTC (2498) and LG didn’t have any new tablets to announce. They didn’t even mention tablets during their conferences. It’s not just that people don’t care about tablets anymore — the big electronics companies themselves aren’t even trying to release new products for this market anymore. The article lists a number of reasons why tablets have become so unpopular.

Tablets are now a commodity

tablets have become so unpopular

First, tablets are now a commodity. You can find dozens of perfectly fine tablets for less than $200. And there’s no differentiating factor between Android tablets. As a result, companies are not making a profit from them.

You already have a tablet

Second, chances are you already have a tablet at home and it’s working fine. So the author reports that there’s no reason why you should upgrade it — it probably runs Netflix, Facebook (FB) and the Kindle app. It has a browser and your emails. Long replacement cycles mean you don’t need to pay attention to the new and shiny tablets. The Business Insider also observes tablets are more like PCs — you buy a new one only when the old one is worn out or doesn’t run the software you need.

Phones are getting bigger

everybody uses their phones constantly to interact with other people and do everything they’d do on a tablet.Third, phones are getting bigger. The LG G5 (5.3-inch display) and Samsung Galaxy S7 (5.1-inch display) are the two most interesting flagship phones that were announced at MWC. The first Samsung Galaxy Note had a 5.3-inch display, which could be called a phablet. Today, it would be an average phone. According to TechCrunch, big phones are the new normal, and everybody uses their phones constantly to interact with other people and do everything they’d do on a tablet.

BI explains the phenomenon of phones replacing tablets includes Apple. Apple started making larger phones, the iPhone 6S and 6S Plus, a year ago, which eliminates some of the justification for a bigger touch screen device. Also, consumers upgrade their phones every two or three years, since the carriers subsidize some of that up-front cost (plus, it’s just cool to have a new phone, which you carry with you everywhere in public).

it's just cool to have a new phone, which you carry with you everywhere in publicFor those who need a snapshot of the decline of the tablet, Business Insider presented a chart from Statista based on numbers from IDC. In the last four quarters, tablet sales have been down from the previous year’s quarter. Overall, shipments in the first three quarters of 2015 are down 9% from the same time a year ago.

Business Insider - Global Tablet Market Decline

TechCruch takes a pretty hardcore position on tablets. Tablets had a good run, but won’t be around for much longer. They argue that the iPad is a better tablet than any Android tablet because there aren’t many tablet-optimized apps on the Play Store. This is key to understanding the iPad’s appeal.

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I have covered the issues around tablets since 2011 including the first signs of a decline in Apple’s iPad Teflon armor in 2014.  TC says tablets can still make a comeback. They need to become something else. But something needs to change and soon. Current tablets prove that you should never bet against the smartphone.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

iPads Stalled

iPads StalledReaders of Bach Seat know that I have been a skeptic of the iPads role as the leader of the “post-PC” era. The Verge looks back nostalgically to 2010 when Apple (AAPL) first introduced the iPad. Steve Jobs heralded the iPad as a “magical and revolutionary iDevice.” It was predicted to play a part in the “post-PC” era of devices. In the subsequent years since the launch of the iPad, many have debated whether the laptop is dead and the PC era over. That hasn’t quite happened yet.

Post-PC era?

Apple now earns more money from Macs than iPadsThe latest financial figures from Apple seem to have gotten this “post-pc” epoch upside-down. Apple now earns more money from Macs than it does from iPads. According to The Verge, Apple made $5.6 billion in revenue from its Mac sales in the most recent quarter and $5.4 billion in iPad revenue. The surprise revenue turnaround casts some doubt on Apple’s “post-PC revolution.” Apple’s iPad sales have been decreasing consistently in recent quarters. Apple doesn’t have an answer to counter the trend.

Tim CookRumors of an iPad Pro with a stylus have surfaced over the past year. Sadly, Apple has only chosen to refresh its line with very few improvements. The decrease in iPad sales is likely related to several factors. Consumers not refreshing tablets as much. The lack of big improvements to the iPad. Smartphones are still revolutionizing the industry more than tablets.

Macs out-selling iPads

Apple CEO Tim Cook famously rejoiced at iPad sales beating rival manufacturer’s PC sales, at the peak of iPad popularity. It’s no longer beating Apple’s own PC sales revenue. Without a major change to the iPad, this could be a trend that continues.

BI - iPad SalesApple is seeing impressive growth on the Mac side. A 10 percent increase year-over-year in Mac sales has helped push revenues past the iPad level, and Apple has been consistently bucking the trend of a PC market in decline.  As for CEO Cook, he still believes in the iPad. “It is what it is. It will play out, and at some point, it will stabilize,” Cook told analysts when asked about the lackluster iPad sales. “I am not sure precisely when, but I’m pretty confident it will.”

Broken iPadsCEO Cooks’s confidence may be misplaced. As far back as March 2015 people were saying the iPad had no clothes. The Business Insider pointed out that sales of the iPad hit a wall. They cite Credit Suisse analyst Kulbinder Garcha who believes and has the data to prove it that phablets are eating the iPad for lunch.

phablets are eating the iPad for lunch.

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Credit Suisse’s Garcha is right when he speculates why would you buy an iPad when you can buy a big phone that does everything the tablet does, and more?

Related articles
  • Unreleased Apple iPad Prototype Stolen In Kidnapping (valuewalk.com)

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

iPad Deal Haunts LAUSD

iPad Deal Haunts LAUSDReaders of Bach Seat should remember the botched $1.3 Billion iPad deal the USA’s second-largest school district made with Apple (AAPL). rb- I covered the massive failure here and here. Well, it seems that buyer remorse has finally set in.

The LA Times is reporting that the Los Angeles Unified School District is now demanding a multi-million dollar refund from Apple or they may sue their former partner. In a letter obtained by LA public radio KPCC, to Apple’s general counsel, David Holmquist, LAUSD attorney wrote,

While Apple and Pearson promised a state-of-the-art technological solution for ITI  implementation, they have yet to deliver it …  the vast majority of students are still unable to access the Pearson curriculum on iPads … will not accept or compensate Apple for new deliveries of [Pearson] curriculum.

Others have called this deal an incompetent, unconscionable betrayal of LA by people who are so ignorant about technology it’s scary to imagine them responsible for anyone’s education.

Margot Douaihy documents the shameful history, which has included firings, resignations, an FBI investigation, an SEC investigation, and the $22 million “d’oh” moment when district officials realized for the very first time that iPads don’t come with keyboards.

incompetent, unconscionable betrayalThe LA Times also reports that a top lieutenant of former LAUSD Supt. John Deasy and architect of the district’s flawed and now-abandoned $1.3 billion iPads-for-all and new online student records system is now taking the helm of the Burbank school district at $241,000 a year. Why?—because Burbank BoE believes they need someone with business savvy to sort out their technology.

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If it walks like a duck and quacks like a duck while the FBI and SEC are investigating, it is probably a politician.

 

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Subpeona Served for LA iPads

Subpeona Served for LA iPadsThis bad idea never seems to go away. Remember the Los Angles Unified School District’s $1.3 billion iPads-for-all project? LAUSD big-wigs claimed that the Apple iPads and Pearson software would raise LA students’ Common Core test scores. I covered the questionable decision here and here. While the proverbial other-shoe appears to be dropping. Not only did the apparent sweetheart deal between the LAUSD Superintendent, Apple (AAPL), and Pearson (PSO) cost Supt. John Deasy his $350,000 a year job – now the Feds are involved.

FBI served a subpoena against the LA school districtThe LA Times reports that the FBI served a subpoena against the LA school district which compelled America’s second-largest school district to cough up 20 boxes of documents related to the flawed iPad project, to a federal grand jury.

The subpoena asked for documents related to the bidding process as well as to the winning bidders in the $1.3-billion poorly planned project. The subpoena, which was provided to The LA Times, is part of a wide-ranging investigation is looking into records related to Apple and Pearson that predate the bidding process or that involve other projects. The article says the documents sought include all kinds of documents:

… score sheets; complete notepads, notebooks and binders; reports; contracts; agreements; consent forms; files; notices; agenda; meetings notes and minutes; instructions; accounting records” and much more.

The article notes that the morning after the FBI seized the documents, Supt. Ramon C. Cortines said he was shelving the contract. He denies that decision was based on the surprise visit by the FBI. Supt. Cortines told the LA Times;

We’re not going to use the original iPad contract anymore. I think there have been too many innuendos, rumors, etc…

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The grand jury process has recently developed a credibility problem in the US. So who knows what they will find in this case. Apple and Pearson have billions in cash to spread around to “educate” people about how great they are.

This just goes to prove how the confluence of bad ideas, poor planning, and greed can go terribly wrong.

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Tablet Trouble

Tablet TroubleThere has been a shocking long-term trend in Apple (AAPL) iPad tablet sales. Despite the much bally hoed launch of the new iPad Air 2 and iPad mini 3, sales of Apple’s iPad have sunk to their lowest level since the 2011 introduction of the iDevice.This chart from Business Insider shows the decline of iPad sales.

Apple CEO Tim Cook was unfazed about the iPad’s plunging sales. During Apple’s latest earnings call Apple’s Cook said, “I’m very bullish on where we can take iPad over time.”Apple Quarterly Revenue

Users don’t want a tablet

Despite CEO Cook’s optimism, research from Kantar Worldpanel Comtech is not so sure. In an analysis of the tablet market, they found that consumers believe that they need the latest iPad. Or any tablet for that matter.

Their conclusion is based on research which found:

  • A majority of U.S. non-tablet owners said they would not buy a tablet in the next 12 months.
  • Of those who will not buy a tablet, 725 said that their PC or laptop was “good enough” as the reason why they are not buying a tablet in the next year.
  • Tablets are not seen as an alternative to smartphones.

Carolina Milanesi, chief of research at Kantar Worldpanel laid out four reasons why tablets sales are not growing at the rate many had expected.

  1. current tablet owners plan to keep their tablets even after upgrading to a new oneReplacement cycles are longer for tablets than smartphones. Ms. Milanesi explains,”Software upgrades help refresh the devices, and carriers do not provide incentives/subsidies to encourage replacements every two years, as they do with smartphones.
  2. Tablets are not as personal as smartphones.While there is no question that tablets are more personal than PCs, if less personal than smartphones, they still land in between the two,” the Kantar chief of research says.
  3. Tablet owners hang on to their old tablet when they get a new one. Smartphone users tend to turn in their old smartphone when they upgrade to a newer one according to Kantar Worldpanel data:
    • 36% of current tablet owners plan to keep their tablets even after upgrading to a new one.
    • 18% plan to pass their old ones on to a friend or relative, according to Kantar Worldpanel data.
  4. Finally, the value proposition of tablets remains weak.They report that only 3% of U.S. non-tablet owners said they will definitely buy a tablet in the next 12 months.

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I thought that tablets were going to take over the world.

So what is the use case for tablets?

If the Apple fanboyz and gurls aren’t buying new iPads why should anyone else?

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.