Demand for Tablet Expected to Slow Down This Year
Tablets are still popular as modern devices preferred by consumers. However, demand for the slates is expected to dwindle this year, although it is expected to still remain significant. This is according to the latest projection by the International Data Corporation (IDC).
The American market research organization has forecast continuous growth of the tablet market in 2014. It also expects demand for 2-in-1 devices to pick up. However, it expects the growth in demand to be at a slower pace this year compared to last year.
In fact, IDC expects tablet demand to lower by over 30% compared to growth in demand in 2013. Thus, the market research firm’s forecast for 2014 was reduced by 3.6% to 260.9 million units worldwide.
As for the prices, it should be noted that average tags have been decreasing in the past two years. In 2012, prices of tablets dropped 18.3%, while last year, the decline was 14.6%. Should consumers expect much cheaper tablets this year?
The IDC projects price erosion to also slow down. Its forecast may suggest that declining price tags may already hit rock bottom. It predicts prices of tablets to drop this year by just about 3.6%.That is significantly slower compared to the two-digit price drop rates in the past couple of years.
IDC also offered a simple explanation for this trend. According to its own analysis, many consumers are starting to prefer higher-end devices, which logically work better as well as last longer.
Preference for high-end devices
Meanwhile, in the more mature markets, IDC has another interesting observation. It thinks that many consumers that have bought higher-end tablets from market leaders eventually realize that their devices are good enough for many purposes. Thus, many of those consumers are compelled not to upgrade to new devices. This may cause great impact to demand.
Another interesting expectation is that commercial demand for tablets may increase this year to balance the decline in consumer shipments. Most of the commercial sales are prominent in the areas of education. IDC believes that many businesses would also soon integrate the use of tablets into their processes.
If that happens, Microsoft Corp’s Windows platform would be on the winning ground. Demand for Windows-based devices is forecast to grow into more than 25% of the market. That is because many consumers and businesses are now starting to realize the benefits of those high-end computers.