Australian tablet market dried up in 2014

Australian tablet sales fell 20% last year, with only Windows tablets seeing a year-on-year increase in unit sales, according to Telsyte.

The technology analyst firm estimated that Apple reclaimed market leadership during the quarter, making up nearly half of sales even as its absolute unit sales declined.

Telsyte has attributed the slowing demand for saturation in the markets for iPads and Android tablets - nearly half of Australians who have ever purchased a tablet did so in 2013, and few upgraded their device last year.

Demand for the iPhone 6, large-screen Android smartphones and a range of wearable devices also helped mute tablet sales.

Telsyte Senior Analyst Alvin Lee said low-cost tablets have lost their appeal as gifts, and more consumers are substituting wearable devices.

“The average cost of a smart fitness band is similar to an entry-level tablet, making it a popular alternative for those who already own a tablet,” he said.

Around 13 million Australians - more than half of the population - had access to a tablet by the end of the year, Telsyte estimated. But two-thirds of Australians do not believe that a pure tablet device will ever be their primary computing device.

Telsyte nevertheless has predicted that the Australian tablet market will bounce back in 2015 due to demand for convertible or hybrid tablets capable of running Windows applications, such as Microsoft’s Surface range.

Image courtesy of Martin Voltri under CC