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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.

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