Samsung Outshines Apple Inc. (NASDAQ:AAPL), Amazon (AMZN) In J.D. Power Tablet Test


Apple Inc. (NASDAQ:AAPL)’s iPads fell short of customer satisfaction in comparison to Samsung Electronics Co Ltd (KRX:005935)(OTCMKTS:SSNLF)’s tablets in this year’s J.D Power ranking. Amazon.com, Inc. (NASDAQ:AMZN)’s tablets put up a great show across various review categories but only managed a second-place tie-up with Apple. J.D Power’s tablet ranking for 2015 was based on a 1,000-point scale.

Samsung is the maker of tablets that most satisfy customers on the basis of performance, features, design, ease of operation and cost. According to J.D Power’s 2015 tablets ranking, Samsung tablets garnered 827 points out of the possible 1000 points based on the above customer review points. In the same test, Apple Inc. (NASDAQ:AAPL)’s iPads and Amazon’s Fire tablets garnered 825 points each to tie in the second-place.

Apple does well in ease of use

Nevertheless, both Apple Inc. (NASDAQ:AAPL) and Amazon had a strong show in different categories. For instance, Apple’s tablets shone on the basis of ease of operation and performance. On the other hand, Amazon did best in terms of cost.

Shrinking iPad sales

Samsung, Apple and Amazon are battling for control of the tablet market. However, demand for tablets has seemed to cool in recent times with Apple reporting its seventh consecutive quarter of iPad sales decline. Apple posted 19.8% decline in iPad unit sales and 19.6% drop in iPad revenues in its fiscal 4Q2015. With only $4.3 billion coming from the iPad market, Apple recorded its lowest iPad revenue since at least 1Q2011.

More trouble down the road

There seems to be no end in sight for tablet woes. Analysts are predicting a bleak future for tablets for tablet vendors. According to IDC, tablet sales tanked 11.2% in 3Q and the trend is likely to continue for the balance of the year and into 2016.

A confluence of multiple unfavorable factors have been blamed for the dropping tablet sales, although some of these are company-specific challenges. In the case of Apple Inc. (NASDAQ:AAPL), its prolonged support for the iPad 2 is seen as part of the reason it is recording steep iPad sales declines. Overall, the rise of phablets is said to be cannibalizing tablets.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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