Australian tablet market in trouble

The Australian tablet market fell 3% year-on-year in 2H19 and is on track to plummet a further 13% in 1H20 as a result of the impact of the coronavirus on the global supply chain, according to Telsyte.

The Australian analyst company estimates that unit sales fell to 1.57 million in 2H19 as a result of an elongated upgrade cycle — increasing to around four years from around 3.5 a year earlier — and economic headwinds.

Apple retained its market leadership with a 48.4% share, but its unit sales fell 5% during the half-year period. Windows-based device sales grew 3% giving them a market share of 31.7%, but Android sales fell 9% for a market share of 18.1%.

In more bad news for the segment, the average cost of tablets sold in 2H19 was around $800, down 8% from a year ago.

Factors expected to stem the decline of the market include the ability of newer-generation iPads to compete with the traditional laptop market due to their computer-like features, and consumer interest in the emerging category of foldable tablets.

Telsyte research suggests that 29% of consumers planning to buy a tablet this year would be open to buying a foldable tablet.