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August 31, 2016

Tablet market revival not expected before 2018

Tablet market worldwide will shrink by 11.5% this year.

By CBR Staff Writer

Lacklustre tablet market is expected to continue for next two years and it could see a revival only in 2018.

The present decline in the tablet market is set to continue through this year and according to IDC, the year over year growth is at –11.5% with shipments of 183.4 million units.

After seeing a revival in 2018, the market is expected to grow through 2020, with shipments increasing up to 194.2 million units.

Higher demand will come from detachable tablets which will steal the market of traditional PCs.

IDC senior analyst Jitesh Ubrani said: "Appealing to the commercial audience will be key as detachable tablets aim to take a larger piece of the traditional PC market.

"Windows and iOS already have solid detachable offerings and with the latest version of Android, Google will also have a horse in the race as they finally offer better multitasking support and added security features."

According to IDC, the demand for detachable is increasing and it could have an impact on small tablets, giving way to larger devices. The market share of 9 inch or smaller tablets in 2016 stands at 55% and it could drop to about 40% by 2020.

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IDC research director Jean Philippe Bouchard said: "We see smaller slate tablets being offered at very aggressive price points, leaving little room for revenues outside of a pure volume or platform play like for Amazon for instance.

"The price pressure combined with a healthier demand on larger screen sizes and detachable tablets will eventually result in an increased portfolio offering from tablet and PC manufacturers."

According to the analysts, slate tablets will continue to dominate the market in 2016, with 85% of all shipments being slate tablets.

The demand for these slate tablets will come from emerging markets as consumers look low cost computing devices while the share of slate tablets could drop to 68% by 2020.

According to the report, Android tablets will have a majority share of 66.2% followed by iOS with 22.4% while Windows tablets will have a share of 11.3%.

By 2020, Android share will drop to 57.8% which will be shifted to Windows which will have a share of 19.3% while iOS will maintain a market share with 22.9%.

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