UPDATED 07:30 EDT / FEBRUARY 26 2015

Report: Apple, Samsung loses tablet market share to generic brands

generic tabletThe top two tablet makers, Apple Inc. and Samsung Electronics Co., lost market share to generic brands in 2014, according to two new reports from research firm Strategy Analytics.

Combined, these generic brands accounted for 70 million devices or 29 percent of tablet shipped in 2014 while Apple and Samsung only accounted for a combined 43 percent, reports Re/code.

Apple remains the number one tablet vendor, with a share of 26 percent while Samsung is in the second spot with 17 percent of the market.

These generic brand tablets mainly consist of entry-level and ultra-low priced tablets sold in emerging markets or as part of heavily discounted holiday promotions in the U.S. and other developed markets. Generic brand tablets are especially popular with wireless carriers in the U.S., where tablets are often given away for free to attract subscribers.

“It’s pretty easy to find the deals: Get a data plan and a tablet for free,” Eric Smith, a senior analyst at Strategy Analytics told Re/code.

Apple is unconcerned with slowing iPad sales. In the company’s most recent earnings call, Apple CEO Tim Cook said that the iPad has a promising future and that he expects sales to stabilize “over the long run.” He cited a recent report from Chitika Insights that found that in excess of 70 percent of tablet-based Web traffic in North America came from iPad users.

Consumers may be “buying” these generic brand tablets on carrier contracts, but the research suggests they are not using them.

Cook also believes that Apple’s partnership with IBM will “move the dial” on iPad sales. The rumored “iPad Pro”, a 12.9-inch iPad, could also help sales, particularly in the enterprise space by delivering advanced productivity features.

“The iPad 12.9-inch Pro version cannot come quickly enough for Apple as it needs to re-ignite growth and demand in its Tablet products,” said Peter King  a service director at Strategy Analytics.

The report suggests that a maturing tablet market that is becoming fragmented based on price points and varied use cases may offer an opening for other vendors to gain market share.

“Vendors producing Windows OS Tablets may have an opening to more aggressively target the enterprise with the launch of Windows 10 later this year, as CIOs value the control and familiarity that Windows could bring to a landscape largely ruled by the bring-your-own-device trend,” said Eric Smith, a senior analyst at Strategy Analytics.

photo credit: Samsung Galaxy Note Pro 12 via photopin (license)

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