Sales of detachables to surge, driving opportunities for Windows, iPad: report
The tablet market, already in flux for a while, is likely to undergo another significant shakeup next year, when sales for detachable tablet-laptop hybrid devices are expected to skyrocket.
At the same time, there is still clearly a market for traditional tablets at the lower end, with sales of the Amazon Fire more than tripling and most consumers ? with the exception of millennials ? still preferring tablets for mobile purchases. The upshot is that marketers need to be very clear about whom they want to target in this space.
?Big thing is obviously the move to detachables both from the vendor standpoint but also from a demand perspective, i.e. there is a end-user demand as well as a multiplication of the offering from the manufacturers,? said Jean Philippe Bouchard, research director for tablets at IDC.
A market in flux
Worldwide tablet shipments are expected to drop 8 percent for the year in 2015, according to IDC?s Worldwide Quarterly Tablet Tracker forecast.
However, demand for detachable tablet-laptop hybrids continues to gain steam as the detachable offerings from hardware manufacturers proliferates. Apple, Google and Microsoft all now offer these types of devices.
As prices for detachables become more attractive, with some dipping below $100, and innovation likely to be driven by competition, IDC forecasts that the segment will record more than 75 percent growth in 2016.
The growth in detachables is likely to drive growth for Windows and a turnaround for the iPad, according to IDC.
IDC expects Windows-based slates and detachables combined to more than double in market share by 2019, as both PC OEMs and smartphone vendors jump on board.
?For millennials, they now believe there is no reason to own a traditional PC when a tablet or even preferably a smartphone can accomplish the same tasks,? said Guillaume Lelait, general manager at Fetch.
?Even Tim Cook, claimed, ?Yes, the iPad Pro is a replacement for a notebook or a desktop for many, many people. They will start using it and conclude they no longer need to use anything else, other than their phones,?? he said.
?This is where tablets are going to be advantageous, in reaching millennials. They need to position the tablet as a complete replacement for PC?s, a helpful tool for consumers professionally as well as leisurely in order to distinguish themselves from notebooks and smartphones alike.?
IPad Pro
Apple?s iPad Pro, while having receive mixed early reviews, IDC expects the Pro to be the main driver of Apple?s ability to gain market share going forward.
By screen size, small 7-inch to 9-inch devices will go from a 57.5 percent share in 2015 to a 43 percent share in 2019. Medium, 9-inch to 13-inch tablets will see market share grow from 41.9 percent in 2015 to 55.1 percent in 2019.
Large 13-inch to 16-inch devices will grow from a 0.4 percent market share in 2015 to 2 percent in 2019.
Amazon Fire
While the market for smaller tablets overall is shrinking, Amazon appears to be playing a larger role here.
During the recent Thanksgiving holiday weekend, Amazon reports that sales for its 7-inch Fire tablet were up more than three times over last year. Other reports suggest that the Fire outsold Apple?s iPad over the holiday weekend.
Amazon helped drive the sales bonanza by reducing the price on the Fire tablet to the $35 from $50 on Black Friday.
?Marketers are able to segment their audiences based on device type. Tablet devices should receive push notifications regarding final purchase decision to tablet users,? said David Galante, vice president of mobile products at Emarsys.
Varied use cases
The numbers point to the challenges marketers face when targeting tablet users, as there are many different use cases and types of users, from enterprise to heavy media users.
Marketers need to have a tablet strategy, especially if they are looking to reach consumers other than millennials.
A new report the Interactive Advertising Bureau finds that consumers 35 to 54 are more apt to use a tablet for their shopping needs and are more apt to make a purchase on these devices compared to the general population. Adults ages 55 to 64 are more than twice as likely to make a purchase on a tablet than on a smartphone.
The challenge and the opportunity with detachables is that users expect them to offer the capabilities of a laptop while being more mobile.
?End-users will expect to be able to do everything they're doing on a portable PC on a detachable, so hardware needs to be capable enough,? Mr. Bouchard said.
?They also need to focus a little bit more on accessories ? keyboards, mouse, power options, docking solutions, etc. ? as detachables are fundamentally more mobile then portable PCs,? he said.
?Accessories will allow manufacturers to compensate the lower price points of detachables with higher margins on accessories.?
Final Take?
Chantal Tode is senior editor on Mobile Marketer, New York
Chantal Tode is senior editor on Mobile Marketer, New York