Less-Priced Tablets to Control 60% of the Market by 2016

With more than 220 models available worldwide, the tablet market is already highly congested and the competition is intense. Today, the Apple iPad is comfortable at the top spot, but by 2016, it is predicted that 60% of the market will be controlled by lesser-priced slates in the sub-$400 price range. Among these are the Amazon Kindle Fire, and the rumored Nexus Tab from Google, as well as entrant models from China and India.

In contrast, the market for tablets above $400 will likely be small by that time. This trend will be mostly due to the adoption of the tablet in India and China, which are both considered as growth markets.

Meanwhile, tablets sized nine inches and above are still favored by most, controlling 75% of the tablet volume last year. The trend, however, is towards smaller display sizes measuring nine inches and below, as these offer better portability.

The market for e-readers is also experiencing growth. To date, over 30 models are available from major players in the industry. Less and less, the e-reader is seen as a simpler and cheaper cousin of the tablet. Last year, the market grew 33%, and shipments are likely to grow at least 20% this year. However, this market could be inhibited by the slow digitization of local content.

via bgr

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Written by: Björn A.

  • monopole

     Not surprising. Tablets are ideal for a lot of tasks but most of those tasks are mundane. Reading ebooks, comics, manga, light surfing, videos and the like are perfectly suited to cheaper tablets. The $400 tablets are SUVs with similar justifications to those of SUV car owners.
    The interesting bit is the impact on Apple which is highly dependent on high margin high cost components.
    What is really exciting is the potential for multi tablet environments when tablets are cheap and plentiful. Tablets serving as multiple windows of the same program or serving as portable interchangeable control panels of the system.

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