In Q3 2019, the global tablet market fell 4% year-on-year, and Amazon rose to second place

Strategy Analytics' latest research report points out that Amazon's powerful ecosystem, low retail prices, updated product portfolio and Prime Day promotions in July have driven Amazon's tablet sales to grow by 141% year-on-year, with a market share of 14%, making it the world's second largest tablet manufacturer in Q3 2019. In Q3 2019, the global tablet market size fell 4% year-on-year, with shipments of 38.2 million units. Can other manufacturers replicate the success of Amazon's service and ecosystem strategy?

Apple has tried to reshape the iPad into a productivity device by adding keyboard support to most models and embedded SIM (eSIM) to all cellular models. The company remains focused on services around its large user base, including the newly launched Apple TV+ streaming service. Similarly, Samsung balances its product portfolio with its high-end Windows and Android detachable computers and a large number of mid-range Android Slates, but Samsung is more interested in higher profits than expanding its user base.

Eric Smith, Director of Connected Computing Devices, noted, “Apple released a slightly larger seventh-generation iPad in Q3 2019 with keyboard support at the same price as the previous model, which drove its shipments up 4% year-over-year. The company’s larger revenue growth suggests that the mix of iPad Pros was stronger than last year as Apple’s average wholesale selling price increased by 9%.”

Chirag Upadhyay, Senior Research Analyst at Strategy Analytics, added: “Huawei tablet shipments fell 18% as the US-China trade war limited Huawei’s ability to compete outside the Chinese market. Its key issue is that it cannot launch new Android models outside of China as Western consumers rely heavily on Google Mobile Services. Huawei’s weakness in Europe helped Lenovo tablet shipments grow 8% year-on-year. Amazon has also been performing better in Europe since Huawei was added to the US Department of Commerce’s Entity List in May 2019. We believe Huawei’s brand can sustain a short-lived trade war, but a slow resolution to the trade war could damage its relationships with consumers, distributors, and carriers.”