Microsoft trumps Apple in October tablet revenue

Microsoft beat Apple in online tablet sales revenue in October according to latest figures released by 1010data. This marks a big milestone for Windows tablets, although revenue can be a misleading number and does not represent market share. Since the Surface Pro tablets are premium products that run high-end PC components such as Intel’s Core series processors, the average price is higher than that of an iPad. Business Insider reports that average price for a Microsoft device is $844, whereas that for an iPad is now $392. Microsoft has also released two new tablets this year: the Surface 3 and the Surface Pro 4. The two-in-one Surface Book was counted as a tablet in this research, as were other convertible tablet-laptop hybrids. Apple has released the iPad Mini 4 and the iPad Pro, though the latter is still new and it is not yet known how well it will sell.

Though Windows is not likely to start dominating the tablet market anytime soon, this is an important milestone for Microsoft and it marks a shift in the product category. While tablet sales overall are expected to decline 8 percent this year, detachable hybrid laptops are predicted to grow 75 percent next year, according to IDC. In the third quarter this year, hybrid tablet sales were up 77 percent. By 2019, Windows is expected to double its market share in tablets.

Gartner also found that 17 percent of consumers plan on purchasing a tablet in the next 12 months. For new tablet buyers, interest is concentrated in the hybrid market where the versatility of a tablet that can be used as a laptop is compelling. Apple and Google are chasing after this market with their iPad Pro and Pixel C products, but Microsoft got in on the market early with its Surface line. Since Windows is a more robust OS than mobile systems such as iOS and Android, it is easy to see how the Surface line has managed to find success.

Not every Windows tablet manufacturer can compete head-to-head with Microsoft. The technology company selling its own hardware must certainly help in some respects, since it can better control how everything works, but other manufacturers have competing products such as the Lenovo Yoga or this HP Surface clone. Similar devices can now be found coming out of China. A new tablet from Sungwoo Mobile, for example, uses an Intel Core-M processor, and has a tablet and stylus. While Microsoft continues to target the high end of the market with its hardware, which drives up revenue, the company is still hoping its software will allow manufacturers to create products for all different price points.