Average price of tablet PCs declined significantly in Q1 2012

According to recently released figures in the IMS Research quarterly tablet PC tracker, tablet ASPs (average selling prices) have declined by 21% in a single year to $386 in the first quarter of 2012.

06/08/2012


According to recently released figures in the IMS Research, recently acquired by IHS Inc., quarterly tablet PC tracker, tablet ASPs (average selling prices) have declined by 21% in a single year to $386 in the first quarter of 2012.

The decline in price reflects intense competition in the tablet PC market. With the release of the new iPad, Apple reduced the entry price of the iPad 2 to $399. This lower price has meant greater price pressure on its rivals, forcing them also to reduce price to make their products competitive.

Despite booming shipments of low-end tablets, vendors of this tier have also pulled the average price down. Low-end tablets typically have prices below $200. However, brands like the white-box tablet PCs have lowered prices below this average and as a result have won widespread adoption in this quarter, primarily in emerging countries.

World Market for Tablet PC. Source: IMS Research

Market analyst and report author, Gerry Xu, commented: “There are few innovations from vendors to differentiate their tablets; low price seems to be the major factor to attract consumers to buy tablets other than iPads. More vendors are expected to focus on the low-end tablet market. However, to balance performance and profitability with a low price remains challenging for most tablet vendors. “

The low-end tablet market is dominated by medium and small brands and also white-box vendors, which are cost driven and less focused on user experience. These products fulfill the needs of price-sensitive consumers, especially those in emerging countries. These consumers tend to use the portable media player, eBook reader, and GPS functions on their tablets. However, upcoming products, such as the second version of Kindle Fire and the Google Tablet, will mean increasing pressure vendors of low-end tablet s to enhance performance while still keeping prices low.

IMS Research’s World Tablet PC Market Tracker examines the world market for tablet PCs every quarter, including unit shipments, ASPs and revenues. Further splits include: by platform, OS, panel size, price range, wireless connectivity and region. It is updated every quarter and includes market shares of the top 10 OEMs.



No comments
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
Water use efficiency: Diminishing water quality, escalating costs; Lowering building energy use; Power for fire pumps
Building envelope and integration; Manufacturing industrial Q&A; NFPA 99; Testing fire systems
Labs and research facilities: Q&A with the experts; Water heating systems; Smart building integration; 40 Under 40 winners
Maintaining low data center PUE; Using eco mode in UPS systems; Commissioning electrical and power systems; Exploring dc power distribution alternatives
Protecting standby generators for mission critical facilities; Selecting energy-efficient transformers; Integrating power monitoring systems; Mitigating harmonics in electrical systems
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.