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Analysts Predict Grim Future for Tablet Computers

Trend Summary: According to the latest data there's a tough road ahead for the tablet computer category as it nears saturation point in the US market.


Long Island-based research company NPD Group reports that the tablet computer category posted an 8% revenue plunge during the recent 'back-to-school' season. This trend reflects the consumer electronics market’s flat growth over the same period. Moreover, the category has seen ...

 

... even steeper declines (an 18% revenue sag) during the ensuing eight weeks.

Given that the European and Asian markets usually replicate (albeit later) US market trends, the future of tablets is distinctly foggy.

According to Stephen Baker, NPD’s vice president of industry analysis, these results don’t bode well for the upcoming holiday season.

Says Baker: “The slowdown has been pervasive, and even the launch of the new iPads at the end of this period has not served to reignite sales growth."

He adds: “With the holidays fast approaching, the potential for a positive tablet sales season appears grim.”

In an interview with Marketing Daily, Mr Baker opines that "part of of the product problem for tablets is [that] the upgrade path is unclear. Once you’ve got a two- or three-year-old tablet, you’re not seeing a lot of value for an upgrade.”

Of even greater concern for the tablet industry, the sales declines occur across most tablet form factors and operating systems.

Android tablet sales dollars are down 22% since the end of the back-to-school season, while in dollar terms Apple’s sales declined 20% in the same period.

However, the success of Microsoft's Surface Pro 3 Windows tablets (albeit only a small sector of the market) provided the sole ray of sunshine by upping its dollar sales by 11%, despite unit sales dropping 23% compared with the same period in 2013.

Read the original unabridged MediaPost.com article.

[Estimated timeframe: Q4 2014 onward]

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

... even steeper declines (an 18% revenue sag) during the ensuing eight weeks.

Given that the European and Asian markets usually replicate (albeit later) US market trends, the future of tablets is distinctly foggy.

According to Stephen Baker, NPD’s vice president of industry analysis, these results don’t bode well for the upcoming holiday season.

Says Baker: “The slowdown has been pervasive, and even the launch of the new iPads at the end of this period has not served to reignite sales growth."

He adds: “With the holidays fast approaching, the potential for a positive tablet sales season appears grim.”

In an interview with Marketing Daily, Mr Baker opines that "part of of the product problem for tablets is [that] the upgrade path is unclear. Once you’ve got a two- or three-year-old tablet, you’re not seeing a lot of value for an upgrade.”

Of even greater concern for the tablet industry, the sales declines occur across most tablet form factors and operating systems.

Android tablet sales dollars are down 22% since the end of the back-to-school season, while in dollar terms Apple’s sales declined 20% in the same period.

However, the success of Microsoft's Surface Pro 3 Windows tablets (albeit only a small sector of the market) provided the sole ray of sunshine by upping its dollar sales by 11%, despite unit sales dropping 23% compared with the same period in 2013.

Read the original unabridged MediaPost.com article.

[Estimated timeframe: Q4 2014 onward]

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: MediaPost.com
MTT insight URL: https://www.marketingtrendtracker.com/article.aspx?id=6453