Apple (AAPL) investors have long taken comfort in the fact that even if its share of tablet shipments fell behind Android's in a particular quarter, the company still took home the lion's share of tablet revenues.That's no longer true, says Morgan Stanley's Katy Huberty.
“Android devices accounted for a greater share of the market in revenue terms than iOS. Android revenue share reached 46.2% in 3Q13, for the first time exceeding iPad share of 45.6%. Android’s unit share grew to 66.7% from 58.5% a year ago, largely driven by Samsung and Lenovo, while iPad share declined to 29.7% from 40.2%”Tom Mainelli, Research Director, Tablets at IDC says "These low cost Android-based products make tablets available to a wider market of consumers, which is good. However, many use cheap parts and non Google-approved versions of Android that can result in an unsatisfactory customer experience, limited usage, and very little engagement with the ecosystem. Android's growth in tablets has been stunning to watch, but shipments alone won't guarantee long-term success. For that you need a sustainable hardware business model, a healthy ecosystem for developers, and happy end users."
IDC attributed the iPad shipment falloff to Apple's decision in late 2012 to move all its product launches to the pre-Christmas quarter -- which meant customers holding out for a new iPad had to wait a full year.But with the iPad Air and Retina iPad mini moving briskly, both IDC and Gartner expect Apple to enjoy what IDC called "robust shipment growth" in the December quarter.