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Analyst: Sales of tablets with cellular connectivity to drop through 2016

Posted: , by Alan F.

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Analyst: Sales of tablets with cellular connectivity to drop through 2016
"In the future, the share of cellular-enabled tablets will be determined by three factors: the availability and attractiveness of multi-device tariffs from mobile operators; the availability of public Wi-Fi networks; and the difference between the retail prices of cellular and Wi-Fi-only tablets."-CCS Research
According to research firm CCS Research, the market share belonging to tablets with cellular connectivity will drop over the next four years. The research firm says that in 2011, 48% of tablets shipped were enabled for cellular communication. That figure is expected to drop to 37% by 2016. Interestingly, CCS Research found that cellular support is not an important feature that tablet buyers seek when looking at different models. This comes as carriers start to offer multi-device cellular contracts that cover both smartphones and tablets.

Back in 2011, those purchasing a cellular enabled tablet did so as a result of what was available at the time they made the purchase. CCS Research noted that only half of those who purchased a tablet with a cellular radio activated their tablet with a cellular carrier. The report says that three factors will be key in determining how many cellular enabled tablets are sold in the future: The pricing of cellular plans from carriers, the availability of public Wi-Fi networks and the difference in pricing between Wi-Fi only and Cellular enabled tablets.

CCS Research's numbers are much more positive for cellular enabled tablets than some other research firms. ABI Research found that just one in three tablets sold world-wide in 2011 had a built in cellular modem while 27% of the 65 million tablets shipped in 2011 had support for a 3G/4G network. That works out to 17.6 million tablets.

source: FierceWireless

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posted on 20 Jul 2012, 12:05 2

1. QWIKSTRIKE (Posts: 843; Member since: 09 Mar 2010)


Why pay for a tablet that makes you pay for online usage fees when you have wifi. Most tablets replace laptops,,,,,,most laptops don't need wireless connections to access the web at home.

To pay39.00 a month to own tablet is ridiculous after paying 500.0 for it. In the end you will have paid 1000.00 for the year to use a product that should have only cost 600.00-700.00 at most

posted on 21 Jul 2012, 11:41

5. piggypigs (Posts: 12; Member since: 21 Jul 2012)


the problem is, laptop can be connected via LAN ... tablet??

And tablet is more mobile than Laptop, so if you do serious work or use it often, there will be places where you can't get wifi.

posted on 20 Jul 2012, 12:36 2

2. nak1017 (Posts: 328; Member since: 08 Jan 2010)


How about we change the rating of the Nexus 7 to 9.5 now since it seems the lack of 3G/4G support isn't something people are missing...?

posted on 20 Jul 2012, 14:56

3. disneydad (Posts: 114; Member since: 26 Mar 2012)


I remember when T-Mobile was thinking that cellular hotspots and tablet/netbook cellular connections were going to be the areas of growth in the wireless industry. They pushed it so hard until they told the frontline to back off sales on it due to so many returns. Ended up costing T-Mobile more money than it was worth to sell it.

We've seen more and more evidence that it is far from the growth area anticipated. Most consumers are not interested in a separate data plan and contract to get a subsidized device that is almost exclusively going to be used at home or within range of wifi. With Wifi becoming ubiquitous these days, I see no need for a cellular equipped tablet. Those who do need it are a very specific niche.

posted on 20 Jul 2012, 21:35

4. Edmund (Posts: 654; Member since: 13 Jul 2012)


This is another of those ridiculous statements that will go down in history :

"There is no reason for any individual to have a computer in his home" --Ken Olsen

"I predict the Internet will soon go spectacularly supernova and in 1996 catastrophically collapse." --Robert Metcalfe

" It would appear we have reached the limits of what it is possible to achieve with computer technology." --John von Neumann (1949)

"I think there is a world market for maybe five computers." --Thomas Watson, chairman of IBM, 1943

"The horse is here to stay but the automobile is only a novelty, a fad"
--President of the Michigan Savings Bank

posted on 21 Jul 2012, 18:05

6. sprockkets (Posts: 1155; Member since: 16 Jan 2012)


I don't want an android tablet from a phone provider since they uck up the updates.

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