Canalys says that 68 percent of tablets shipped in Q2 had a screen size smaller than 9-inch.
Apple’s decline in shipments and share has been partly attributed to its aging portfolio.
The move to smaller tablets has sparked a price war that has real consequences for the entire supply chain. These products generate little absolute margin for channel partners, vendors or component manufacturers. Content, applications and accessories (especially cases and keyboards) are now even more important to boost margins – areas where Apple remains a leader.
In addition to disappearing margins, inventory management is emerging as a major challenge.
The market for full-sized tablets has stalled and even Apple has found it harder to sell its larger iPads in recent quarters.
While Apple is losing its stranglehold on the tablet market in terms of volume, it will remain its most profitable vendor for years to come.