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October 15, 2014

Tablet sales growth suffers 44% drop

Tablet sales will account for less than 10% of all devices in 2014.

By Ben Sullivan

Tablet sales growth is slowing this year because consumers are favouring other devices such as phablets and existing tablet users cling on tablets they already own.

The findings, published in a new report from Gartner, said worldwide tablet sales will reach 229 million units in 2014, which is an 11% increase from 2013. In 2013, tablet sales grew 55%.

Ranjit Atwal, research director at Gartner, said that the relationship between different devices continues to evolve. He said: "Some tablet users are not replacing a tablet with a tablet, they are favouring hybrid or two-in-one devices, increasing its share of the ultramobile premium market to 22 per cent in 2014, and 32 per cent by 2018."

When it comes to smartphones, Gartner said that the devices will make up 71% of the global mobile market this year, with sales of ‘basic’ smartphones which include midrange Android devices projected to grow 52% and utility smartphone sales doubling.

"The market is clearly favouring those vendors offering value in lower-priced smartphones. This trend has become more apparent, especially in the second quarter of 2014 when most of the top Chinese smartphone vendors grew volume and market share," said Roberta Cozza, another research director at Gartner. "As smartphones reach lower prices, Gartner expects nine out of 10 phones to be smartphones by 2018."

Gartner also said that the Android and iOS smartphone operating systems are further entrenching their market positions, making it difficult for competitors to get a look in.

In 2015, Gartner estimates that shipments of Android devices will reach over one billion in emerging markets, driven by sales of lower-cost products. Apple’s new devices, which target the premium market, will continue to help drive iOS volumes.

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