technology

Tablet Growth Slows Between Waves

Global tablet growth will slow to 2.5% in 2014, says ABI Research, as demand moves into new markets.

The maturation of the global tablet market has begun, with the first wave of countries having reached saturation, and the second wave of other markets looking to makers beyond the big two (Apple and Samsung) for their wares.

According to ABI Research, overall tablet growth is set to be only 2.5% in 2014, in part because the market is in between buying waves. Though Apple and Samsung still combine to account for nearly 70% of all shipments during the first half of the year, other players may cut in to sales in  immature markets, says ABI Senior Practice Director Jeff Orr.

“You’re seeing a level of saturation [in mature markets]. Those that have an intention of buying a tablet, have one,” Orr tells Marketing Daily. “It’s a gap that’s being created by that next wave of markets. Interest levels are high, but they don’t have the same population.”

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Globally, first half shipments of Apple’s iPad were down 13%, while Samsung shipments were up 26%, year-over-year. In less mature markets, Apple may be hurt by its limited selection and higher prices, while Samsung may still be looking for the right mix of products to offer in individual markets, Orr says.

“The largest branded makers have not been able to translate their value to those countries,” Orr says. “We are seeing adopting of devices at lower price points [that] has more to do with the local markets can bear. … What we haven’t seen from Samsung is an optimization of their portfolio in those second-wave markets.”

The gap opens up the opportunity for local and regional brands (such as Asus and Acer in Asia-Pacific or Pioneer Computers in Australia) to claim market share in developing markets, Orr says. “I would not count out those local brands to capture a significant amount of the marketplace,” he says. “The good news is, there’s lots of choice in the market.”

1 comment about "Tablet Growth Slows Between Waves".
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  1. Steve Schildwachter from Enterprise CMO, LLC, October 3, 2014 at 12:32 p.m.

    This is actually a healthy sign.

    Perhaps it will allow the industry -- or at least the ad industry -- to stop thinking of tablets as "mobile" devices. Smartphones are "mobile", tablets are ..."portable"?

    http://admajoremblog.blogspot.com/2014/10/tablets-are-not-mobile-theyre-portable.html

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