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December 24, 2014

Declining ASPs make tablets affordable in emerging markets

Average selling price of tablets dropped by 8.5%, while Ultrabooks dropped 7.1%.

By CBR Staff Writer

A new report from ABI Research reveals that the declining average selling price (ASP) of Ultrabooks and tablets dropped by 7.8% this year, making them more reasonably priced in all markets.

The report adds that the average household income required to purchase a tablet or Ultrabook plunged 30% in 2014.

ABI Research analyst Stephanie Van Vactor said: "Across 22 different countries between 2013 and 2014, there was an 8.5% decline for the ASP of tablets and 7.1% for Ultrabooks."

"This decline is allowing these devices to reach a larger audience in a wider range of countries."

Among all nations, Chile reported the highest ASP drop by 56% for both devices, with tablets experiencing the largest decline at 70.3%, due to a surging selection and competition over the entry of lower-end devices between 2013 and 2014.

On the contrary, India reported the highest rise during the period, at an average of 22% for both devices, with tablets solely experiencing a 34.5% rise, due to the rise of an e-commerce presence, Apple products, and mid-tiered devices.

Last year’s ABI Research report revealed that 11 weeks of income were required to buy an Ultrabook and nearly four weeks for tablets, while the figures for Ultrabooks dropped by 47% and tablets declined by 60%.

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Van Vactor added: "Partly due to the increase in models and price points in e-commerce, Indonesia, like many other developing markets, is a good example of the commoditizing of these devices."

"Market maturation will continue this effect through the next year, especially as competition increases and affordability continues to prosper as a result."

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