Low-cost tablets to dominate the market by 2016

Low-cost tablets to dominate the market by 2016
The iPad started the tablet market and it’s been dominating it ever since that moment, but late last year the small, 7-inch Amazon Kindle Fire made its big entry, lowering the tablet entry point to merely $199. And the drop in prices will change the way the tablet market looks by 2016, according to ABI Research who risked to look into the future.

Emerging markets is the key word here as the developed Western countries seem to have less incentives to look into slightly inferior but cheaper tablets. This will mark a change from the way the tablet market looks today, dominated by the iPad and large screen tablets. Actually, 75% of all tablets sold in 2011 had a screen larger than 9 inches.

What makes product like the Amazon Kindle Fire important in that regard, is that unlike underbaked Chinese tablets, having a tablet like the Fire or the rumored very affordable Google Nexus Tablet, the software works smoothly and there’s some kind of an app catalog included.

Do you agree with ABI’s projections? What are your expectations about the future of the tablet market?

source: ABI Research via BGR

Apple Will Maintain Tablet Market Dominance in the Short Term, Low Cost Segment to Take 60% by 2016, Says ABI Research
SINGAPORE – March 21, 2012
​The media tablet segment has evolved as a dynamic landscape since its inception about three years ago, evidenced by the fact that there are currently more than 220 models in the market. While the Apple iPad remains the market leader in the media tablet segment, the buzz created by iPad has paved the way for more and more vendors to join the race, especially in the lower price segment. The market for sub-$400 media tablets is expected to see significant growth over the next five years, occupying more than 60% of the market share by 2016, while the market for the over $400 segment is expected to shrink.
According to Jeff Orr, group director, consumer research, “The majority of new entrant media tablet models have been in the sub-$400 segment that focuses on growth markets like India and China. The strong wave of growth in this segment over the next few years is expected to be driven by the adoption in emerging markets.”
Wide aspect display media tablets (nine inches and above) are still favored in the market and accounted for more than 75% of the total media tablet volume in 2011, which is mostly attributed to the Apple iPad 2. However, the trend in coming years is expected to be inclined toward display sizes between seven and nine inches as smaller-sized media tablets provide better portability options for end-users.
No longer considered the unprivileged elder cousin of media tablets, eReaders are also on an accelerated growth track, with more than 30 models currently available by major vendors. 2011 has seen a healthy 33% growth in the eReader market and the market for total shipments is projected to grow over 20% in 2012. “Availability of competing models increases options for consumers and will help to boost eReader adoption,” says research analyst Aishwarya Singh. “However, the slower pace of digitization of local content will be the key market inhibitor for adoption of eBook Readers, as well as media tablets, in the emerging markets.”
ABI Research’s new market data, “Mobile Internet Device Product Tracker,” tracks media tablet, netbook, UMPC, MID, and eReader releases from all major vendors.
It is part of firm’s Tablets, Netbooks & Mobile CE Research Service.



20. gallitoking

Posts: 4721; Member since: May 17, 2011

and these is whay Android has market share.. the trive on putiing cheap products .. that poeple will buy just on price alone....go Android!!!

21. remixfa

Posts: 14605; Member since: Dec 19, 2008

I love how they are cheap tablets but yet have more and better tech in android tablets.. so gallito logic says that if u make the amazon tablet 1000 bux its the best tablet because its the least cheap. lol. durka. over paying makes it better..er!

17. millgate

Posts: 2; Member since: Nov 13, 2010

Terrific ... at last ... where have you been all my life ? By the way ... I think you are mistaken; it's not simply the Asians who are dedicated to driving down price and upping performance. Apart from me - and I don't matter much to the world at large, 'cos I'm a 'senior' and I'm retired ... the 'purchasing group' that I belong to ... SENIORS ... has more discretionary funds available and more time to appreciate spending it sensibly, than any other demographic group in the known developed world. I've been trying to rally mobile users like me to buy 'pocketables' for the past 2 years - and I'm delighted to see such as the Samsung Galaxy Note and the magnificent HUAWEI products now beginning to break the 'less than £25/month' mould. By next September - when my contract will let me out of the 'DELL Streak 5 box' - much as I still enjoy it - and in which I've been for over a year now - I'm pretty certain that the Galaxy Note will be available here, in the UK, for less than £20/month and ... IT WILL BE MINE. Yippeeee!!.

16. sgtdisturbed47

Posts: 975; Member since: Feb 02, 2012

The Kindle Fire sold like crazy, but look at how many of them are selling (and have been sold) on eBay, used, because after a while they simply stopped using it after they realized that it's simply an e-reader that can web browse. It was backed by nothing but hype, with people calling it a real Android tablet and claiming that it's powerful and smooth. It IS an Android tablet, but it comes pre-loaded with Amazon's software and no Android Marketplace. Users have to root their Fire in order to install Marketplace. Reading is good on the Fire, web browsing is mediocre at best (touch accuracy isnt very good, which leads to miss-tapping on links), and videos are out-of-sync. It's definitely a $200 tablet. Sold mine for $150, and I'll never buy another one. If I want a more serious tablet in the future, then I'll shell out the $350+ for a much more capable tablet. Hype will always sell, especially since there are countless forums and review sites that take a look at new devices and make them appear glamorous.

13. Mandroid

Posts: 209; Member since: Feb 22, 2012

Personally I think the tablet fad is just that, a fad. There were tablets long before the ipodXL, or "ipad", came out. I see tablets as I do 3D; comes around every 5-10 years, is big for a couple, goes away, lather rinse repeat.

14. remixfa

Posts: 14605; Member since: Dec 19, 2008

Tablets as they exist are a fad. What they are now is toys. Eventually they will replace PC's for a large portion (but never all) of people, as they become more PC like... like Windows 8. Add an HDMI output and a blutooth keyboard and you have an instant big screen computer for most people

10. -box-

Posts: 3991; Member since: Jan 04, 2012

@Victor: the ipad did not start the tablet market, just as the iphone didn't start the smartphone market, or the ipod didn't start the portable media player market. There were Windows tablets (and convertible laptops and UMPCs) well before the ipad. The ipad popularized the market, yes, and introduced a more portable form factor (thin and light instead of thick, robust, and lots of ports for a portable computer) but did NOT start it. Please try to stick to facts, else you will be seen as having a bias. Thank you.

19. gallitoking

Posts: 4721; Member since: May 17, 2011

if an average person cannot mention a tablet prior to the ipad then you have a point.. but other than hardcore geeks no one knew about a tablet prior to the ipad. reporting that the tablet market was started by the ipad then is a fact... to say that the ipad was the 1st tablet then is wrong.. there is a difference..

9. Stuntman

Posts: 843; Member since: Aug 01, 2011

After using the Chrome beta on my tablet for a while, I realise how much I use Flash. I expect the iPad to have the same lack of functionality as Chrome beta when it comes to web browsing. I do find that the iPad trades some functionality for smoothness in the UI. I like the UI in Safari more than the browser on my Android tablet. Safari on the iPad handles mouse overs and maximising videos (that it can actually play) better than the Android browser. Overall, I personally went with the Eee Pad Transformer for the functionality which includes the great keyboard dock. No keyboard dock for the iPad that I have seen comes close to being as good as the one for the Eee Pad. I really think that Google needs to go the low-cost route. Google needs their products and services on as many devices as possible. That's what Google cares about. They should have tried that or encourage tablet manufacturers to try that at the very start. Right now, with the iPad in its third generation, the first and second generation iPads are coming down in price. This makes it more difficult for Android tablets to compete in price because they now have to also compete with older iPads.

8. remixfa

Posts: 14605; Member since: Dec 19, 2008

well duh. lolz. not everyone is willing to pay 600 bux for what equates to an e-reader with games. Apple might be making mad profit, but the industry itself is an infant and has only like 2 percent worldwide penetration. Most of the world doesnt have 600 bux a year to blow on a 1mpx camera upgrade, especially when they can get 3 cheap tablets for that price that do the exact same thing. And with ICS, that whole "smoothness" thing that you guys pride apple on is going to get its first major competitor. In basically a year since the launch of honeycomb, android tablets have gone from a blip to nearly half the tablet market. iPad might still get all the headlines, but they are losing marketshare faster than they can grab it... to cheap android tablets. Amazon Kindle, soon the Nexus tablet, and so on. To any ifanatic.. take the nexus tablet when it drops (or even the asus transformer now) and stick it next to an ipad, then explain to a stranger that has no idea or invested interests in one OS or another, why they should pay 300-400 more for the ipad over the nexus with only honest non-fanboy statements. I wonder how many people would spend more for the apple? probably not a lot.

4. Bluesky02

Posts: 1439; Member since: Dec 05, 2011

I'll buy Nokia Windows 8 tablets!

3. ChafedBanana

Posts: 409; Member since: Sep 20, 2011

Ew tablet is right. I have an iPad 2 at work and a Galaxy Tab 10.1 at home (Work owns the iPad). The iPad pisses me off with it's lack of flash support. I did have my GT10.1 replaced under the warranty for an "oil slick" on the screen. Other than that, it's been a good tab. iPad is plain boring to me compared to Android customization. I've been enjoying the 4G and widescreen for 9 months now.

6. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

Oil slick on the screen! Lol wowwww do u have an android tablet, or an Exxon tablet. Dude jus get an iPad, and you'll be cool. Btw flash is dead adobe is no longer supporting it, they're switching to html5. They feel it's more profitable to work with apple, and Microsoft than android. Oil slick on the screen what a waste.

7. remixfa

Posts: 14605; Member since: Dec 19, 2008

wrong, like normal Adobe is no longer making new major updates for mobile flash. It is still fully supported on PC and will continue to recieve any needed maintenance updates on mobile. more than half of the worlds smartphones are flash enabled. ICS is flash enabled. All PCs are flash enabled. Its going to be a looong time before flash is dead. it also has nothing to do with "being more profitable by working with MS and Apple", as with moving to the new standard like everyone else, but it will be years before its the main stream standard. Neither of those 2 companies had anything to do with the HTML5 standard. They are just adopters like everyone else. for now, and for the next few years, flash is king.

18. gallitoking

Posts: 4721; Member since: May 17, 2011

only because it takes a couple of years to kill flash.. so your king (flash) has its days numbered...

2. Das70

Posts: 124; Member since: Jan 05, 2011

Good for you. Was there a reason why you had to share with everyone that you will blow $500+ every year on a ew tablet.??

12. Mandroid

Posts: 209; Member since: Feb 22, 2012

For some reason morons like to tell the world exactly what makes them morons. Weird.

1. zheking

Posts: 28; Member since: Mar 02, 2012

Even in 10 years i will still be buying the latest ipad btw android tablets suck and the only android tablet that I think is competing with the new iPad is the full hd ASus transformer prime and that is because of it keyboard and laptop like dock

5. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

I agree with u zheking. In 10 years all tablets will be better, and maybe cheaper jus like tv's r cheaper now, than 10 years ago. Apple will still be the best tablet, and I'll still buy it. Android tablets do suck btw, so laggy buggy glitchy, and just bad. I took my Xoom back, it was plain horrible, I tried the galaxy 10.1 which was ok, but ended up giving it to my girlfriend... It was too choppy. The iPad is what it's all about.

15. Baseballer

Posts: 132; Member since: Dec 07, 2011

Are you on crack? You must be because your comment makes no sense.

11. -box-

Posts: 3991; Member since: Jan 04, 2012

The sheep says: Baaaaaa Morpheus says: Free your mind RIM says: You never know what will happen in the future I say: to expect that apple will still be as strong or popular or influential in 2022 as it is in 2012 is foolish. Tech changes quickly, and apple's falling by the wayside in terms of ingenuity and new product, despite strong sales. Palm, RIM, and Windows Mobile went through the same thing, and look at them now.

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