Skip to main content

How Demand for Low-Cost Tablets will Drive Growth

There once was a time when Apple had been able to maintain its media tablet lead by delivering a quality experience at a premium price. But as a growing number of analyst opinions raise new doubts about ongoing leadership -- the consumer electronics (CE) brand may have lost some of its caché in the marketplace.

Even though the iPad maker exited the first quarter of 2013 with a 50 percent share of all tablet shipments, the Google Android ecosystem is poised to overtake iOS -- according to the latest market study by ABI Research.

The big variable for Android leadership success is progress in China. The Chinese consumer elite still seem to be upbeat about the Apple brand -- and there's a growing ability for more consumers to afford technology devices.

However, the selection of smaller 7 inch Android tablets has become very popular, even though most currently lack the Google suite of apps and Android Play marketplace.

Moreover, a push for sub-$200 tablets is keeping Android relevant in both developed and emerging markets. In particular, the increased demand for these devices seems to be fueled by novice internet users.

Combined with the free Wi-Fi hotspot access phenomenon, low-cost tablet ownership will likely help remove the final barrier of entry to the Global Networked Economy for many people.

"It’s inevitable that Google Android tablets will overtake Apple iOS-powered slates, though we see no single vendor challenging Apple’s dominance anytime soon," says Jeff Orr, senior practice director at ABI Research.

With media tablets commercially available for more than four years, momentum is shifting toward value and affordability -- putting these devices within reach for more of the mainstream population.

Average selling price (ASP) and size have been moving down-market since Android tablets started honing in on the opportunity in 2012.

Rather than try to unseat Apple in the 10 inch class space, tablet vendors sought a defensible area they could own -- the result is the 7 inch class devices.

Facing manufacturing limits in its first quarter of offer, the 7.9 inch iPad Mini put a dent in the larger iPad sales and Apple profits. The first quarter of 2013 saw Apple cover its backlog and approach the typical 4-6 weeks of sales channel inventory.

ABI Research estimates that iPad mini represented 49 percent of units and 39 percent of total iPad revenues. ABI says that they expect iPad minis to become the predominant iPad model after the second quarter of 2013.

Popular posts from this blog

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

5G Fixed Wireless Access Revenue to Reach $24B

Available Internet access at an affordable cost is essential for everyone to participate in the Global Networked Economy. The deployment of fifth-generation (5G) wireless communications infrastructure is enabling the introduction of lower-cost broadband services in some markets. Fixed Wireless Access (FWA) allows mobile network operators (MNO) to deliver high-speed Internet connections in areas that have either insufficient or no prior wireline broadband access services. It's also used in urban, suburban, and rural areas where fiber optic communication is considered too expensive to install and maintain. With this new technology, MNOs have the potential to provide broadband capability at similar levels to fiber optic networks. Fixed Wireless Access Market Development Therefore, FWA can be used to supplement existing wired broadband Internet service offerings, provide additional broadband capacity, or act as a backup service for home or business applications. Although FWA is well es

Why the C-Suite Craves Digital App Acceleration

Business model evolution and growth are still top priorities for forward-thinking leadership. In fact, 70 percent of surveyed boards of directors will accelerate digital business initiatives, steering the organization to digitally-enabled growth. Chief Financial Officers (CFOs) also plan to protect their digital transformation investments as they cut costs elsewhere in their operations, according to the latest market study by Gartner. Among technology priorities, CFOs have particularly prioritized back-office business automation technology as a key to driving down costs in the face of ongoing inflation and supply chain challenges. Digital Applications Market Development A survey of CFOs found that digital business app acceleration was the top spending priority over the next 12 months, with 98 percent of respondents saying they will protect digital investments. Meanwhile, 66 percent of surveyed CFOs said they plan to increase their digital app investments. A separate survey of CEOs high