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.


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
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Choosing controllers: PLCs, PACs, IPCs, DCS? What's best for your application?; Wireless trends; Design, integration; Manufacturing Day; Product Exclusive
Variable speed drives: Smooth, efficient, electrically quite motion control; Process control upgrades; Mobile intelligence; Product finalists: Vote now; Product Exclusives
Machine design tips: Pneumatic or electric; Software upgrades; Ethernet advantages; Additive manufacturing; Engineering Leaders; Product exclusives: PLC, HMI, IO
This article collection contains the 5 most referenced articles on improving the use of PID.
Learn how Industry 4.0 adds supply chain efficiency, optimizes pricing, improves quality, and more.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Cyber security cost-efficient for industrial control systems; Extracting full value from operational data; Managing cyber security risks
Drilling for Big Data: Managing the flow of information; Big data drilldown series: Challenge and opportunity; OT to IT: Creating a circle of improvement; Industry loses best workers, again
Pipeline vulnerabilities? Securing hydrocarbon transit; Predictive analytics hit the mainstream; Dirty pipelines decrease flow, production—pig your line; Ensuring pipeline physical and cyber security