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November 6, 2015

Tough days to come for tablet makers

News: Less than one in five plan to buy the device in next 12 months, says Gartner

By CBR Staff Writer

Tablet vendors will have a tough time in the next 12 months as consumers lose interest in the devices.

Less than one in five users in mature markets is planning to buy or upgrade a tablet as the penetration is very high at 66%. More than 25% own two or more tablets according to market analyst Gartner.

Nearly half (48%) of those surveyed said they would not replace their current computing device until they absolutely had to.

Lack of widespread wi-fi connectivity in emerging markets is also a cause of concern for the tablet industry.

The survey covered 19,000 consumers in the US, UK, France, China, Brazil and India and found that only 17% of consumers in mature markets plan to buy a tablet in the next 12 months.

The findings indicate that market leaders will be forced to reassess opportunities in the category, as basic and utility ultra-mobile upgrade rates are expected to decline by 10% through 2016.

In addition, about half of respondents said they plan to remain loyal to their current device, particularly desktops (65%) and standard laptops (46%).

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The survey has also indicated that consumers seem increasingly uncertain about what device will replace their tablet which, says Gartner, indicates that users’ wants and requirements are not clearly met by existing product offers.

Gartner principal research analyst Meike Escherich said: "Unless new compelling innovation or incentives to upgrade tablets are created, the churn of the mature installed base will continue to fall.

"The worst-case scenario is that many tablet users will never upgrade or buy a new tablet as phablets and/or two-in-one convertible PCs (both with larger screen) envelop the benefits of a tablet. This scenario would result in real household penetration for tablets falling under 40 percent in mature markets."

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