IDC: China's tablet shipments in the second quarter of 2020 were approximately 6.61 million units, up 17.7% year-on-year

The latest tablet quarterly tracking report released by International Data Corporation (IDC) shows that in the second quarter of 2020, China's tablet market shipments were about 6.61 million units, a year-on-year increase of 17.7%. In the "post-epidemic" era, China's tablet market has recovered rapidly. Slate Tablet (traditional straight-plate tablet) shipments were about 2.69 million units, a year-on-year decrease of 41.6%; Detachable Tablet (pluggable keyboard tablet) shipments were about 3.92 million units, a year-on-year increase of 286.0%. The trend of product form transformation has been obvious in the past year.

After getting out of the trough of production capacity, the continuation of unfinished orders from the previous quarter and the large-scale replenishment of channel inventory have effectively promoted the growth of tablet shipments in the second quarter. Remote work, online classes, and home entertainment also continue to drive consumer demand for tablets. However, due to the excessive impact of the epidemic on production capacity in the first quarter, the shipment volume of the Chinese tablet market in the first half of 2020 still fell by 5.4% compared with the same period last year.

IDC believes that although the shutdowns caused by the epidemic have constrained shipments in the first half of this year, the market demand it has triggered has injected a shot in the arm to the previously increasingly quiet Chinese tablet computer market; as the main products of leading manufacturers enter the update cycle one after another in the second half of the year, it will stimulate consumers' enthusiasm for tablet computers.

Tablet commercial market shipments in the second quarter were still affected by the epidemic

The commercial market shipment volume was about 990,000. Although it increased by 59.0% month-on-month, it was still on a downward trend compared with the same period last year, down 14.1% year-on-year. Education still occupies the largest shipment share in the commercial market, with a year-on-year increase of 33.4%. In addition to the government's procurement of the census project, it also added a new "poverty alleviation" census project, a substantial year-on-year increase of 202.5%. The sluggish economic environment caused by the epidemic has led to a decline in corporate procurement, among which LB (large enterprises) fell by 24.4% year-on-year, and SMB (small and medium-sized enterprises) fell by 45.3% year-on-year. The commercial market is expected to rebound in the next quarter thanks to the peak procurement period for education and government projects.

Tablet consumer market shipments recovered well in the second quarter

As the epidemic eases, the demand for tablets stimulated by it still exists. After the production capacity problem is solved, the consumer market shipped about 5.61 million units, a year-on-year increase of 25.9%. The stability of market demand and the release of more attractive new models will help the consumer market continue to grow in the second half of the year.

Overview of major manufacturers in China's tablet market in the second quarter of 2020:

Apple: Return to the top of shipments. Apple iPad shipments in the second quarter were approximately 2.76 million units, an increase of 18.7% year-on-year, accounting for 41.8% of the market share. As the production capacity and supply chain of foundries gradually return to normal, Apple has maintained a high shipment volume. Thanks to the vigorous promotions of various e-commerce companies and the subsidy coupons launched by local governments to stimulate consumption, the cumulative discounts of various iPad series during this "618" period were the largest in history, successfully stimulating consumers' desire to buy. With the update of the cost-effective "iPad air" series and the performance upgrade of the entry-level iPad series in the second half of the year, these two product series with the highest shipment ratio will further enhance the competitiveness of the iPad and drive growth.

Huawei: The highest year-on-year growth rate. In the second quarter, Huawei's tablet shipments were about 2.45 million units, a year-on-year increase of 59.5%, and the market share accounted for 37.1%. Although it still maintained the highest year-on-year growth in shipments, Huawei began to enter the product update and adjustment cycle in the second quarter: old products began to be discontinued, and new products were released one after another, especially Honor's various product lines began to be upgraded intensively after a year. With the official shipment of the 5G version of MatePad Pro and the subsequent follow-up of the 5G version of Honor v6, Huawei has already occupied a first-mover advantage in the 5G tablet market. In the new generation of product lines, the implantation of the "Education Center" helps Huawei tablets enhance their educational attributes. It not only meets the entertainment and office needs of adults, but is also more suitable for children's education, and can even compete directly with educational tablets.

Microsoft: Steady performance with some growth. In the second quarter, Microsoft's tablet shipments were about 230,000 units, up 16.0% year-on-year, accounting for 3.5% of the market share. The Surface Go series saw a significant increase in shipments due to online class demand, and the timely launch of new products Surface Go2 and Surface Book3 also helped Microsoft resume year-on-year growth. The Surface X series has won the favor of Chinese consumers with its ultra-light and thin appearance, and its shipment ratio is higher than that of other countries and regions.

Lenovo: Consumer market growth. Lenovo tablet shipments in the second quarter were about 170,000 units, down 19.1% year-on-year, and the shipment market share was 2.6%. As large government and education projects will be concentrated in the next quarter, and corporate procurement has been in a long-term downturn due to the epidemic, Lenovo's shipments are still on a year-on-year decline. However, with continued resource investment, Lenovo has achieved a year-on-year growth of 19.4% in the consumer market.

IDC believes that the sudden outbreak of the COVID-19 pandemic in 2020 has had an important impact on the development of the electronic terminal industry, especially opening up a new development space for the tablet computer market, which has been saturated for many years: the future education industry will show a development trend of "online and offline integration". Online education is still in its early stages of development. Whether it is schools, education and training institutions in the commercial market, or individual consumers, they will actively invest in the construction and use of online education. At present, tablet computers are still the most suitable terminal form for online education. Therefore, with the help of online education, which has already gained momentum, tablet computers will also receive more attention and market demand than before. Especially in the consumer market, according to IDC's long-term monitoring, among consumers who bought tablet computers before the epidemic, the proportion of those who mainly used them for online education was less than 10%; during the peak of the epidemic, this proportion soared to 80%; although it began to decline in the second quarter as the epidemic eased, it still accounted for nearly 50%. In the future, as the epidemic may become normalized, IDC expects that the proportion of ordinary consumers buying tablet computers for online education will remain at around 35% for a long time. Therefore, in the future, educational use will not only become the main driving force for growth in the commercial market, but will also help tablets gain more demand than before in the consumer market.

IDC China senior analyst Guo Tianxiang said: Overall, although the shipment volume of China's tablet computer market in the first half of 2020 was lower than the same period last year, it was significantly better than previously expected. Although the "new crown epidemic" affected production capacity in the early stage, resulting in a decline in shipment capacity, it has brought new opportunities for the long-term development of tablet computers in the future. The economic downturn caused by the epidemic in the commercial market has made it take longer for corporate procurement to recover. However, online education has become an important usage scenario in the consumer market, which will significantly increase consumer demand for tablet computers. With the continuous optimization of current educational software, the educational tool attributes of tablet computers will continue to be strengthened. The second half of the year is the stage when heavyweight new products from leading manufacturers are launched one after another. The increase in new product drivers and educational usage scenarios will continue to help tablet computers achieve better market performance. Tablet computers will remain vibrant for a long time!