As phablets gain popularity, tablet shipments worldwide have dropped by 12 percent year-over-year to 67 million units in Q4 2014, which research firm Canalys has dubbed as the first ever decline after several quarters of sluggish demand.
Canalys' findings are similar to a report produced by IDC that predicted a fall in tablet shipment at the end of 2014, reported TechCrunch.
Apple saw a decline in tablet shipments in the last quarter for the fourth time in a row after a brief spell of improvement in Q4 2013 following the launch of the iPad Air.
While Apple's tablet shipments fell by 18 percent, Samsung's recorded a 24 percent decline in sales.
The report said that Apple's new phablet, iPhone 6 Plus, emerged as one of the big winners during the holiday season.
However, despite witnessing a decline in tablet shipments, Apple gained 30 percent of the market in Q4 2014 whereas Samsung did not do as well because its shipments were impacted by inventory issues.