Tablets To Become More Affordable In Emerging Markets
With the price of mobile devices dropping significantly in recent times, the number of consumers that own these devices within emerging markets could accelerate considerably in the coming days. According to market intelligence firm ABI Research, the Average Selling Price (ASP) of Ultrabooks and tablets declined by 7.8% in 2014, as the market matured and commoditized, allowing these devices to become more affordable in all markets.
The average weeks of household income needed to buy a tablet or Ultrabook both declined by approximately 30% YoY; making these devices more affordable to a wider range of consumers, says the research firm.“Across 22 different countries between 2013 and 2014, there was an 8.5% decline for the ASP of tablets and 7.1% for Ultrabooks,” says Research Analyst Stephanie Van Vactor in a statement.
“This decline is allowing these devices to reach a larger audience in a wider range of countries.” Although growth is slowing for both these types of devices, affordability could help prevent a drastic decline in sales.The affordability of personal technology devices is strongest in many mature markets, such as the United States, Japan, and Germany, primarily due to the higher household income.
However, ABI Research highlights that Chile experienced the largest decline in ASP, 56% for both tablets and Ultrabooks combined; tablets experienced the largest decline at 70.3%, due to the increase in selection and competition caused by lower-end devices entering the market between 2013 and 2014.
In contrast, India experienced the largest increase in ASP between 2013 and 2014, at an average of 22% for both tablets and Ultrabooks; tablets alone experienced an increase of 34.5%, due to the surge of an e-commerce presence, Apple products, and mid-tiered devices.Indonesia witnessed the most noticeable change in affordability for weeks to buy for Ultrabooks and tablets.
Last year, ABI Research noted that 11 weeks of income were needed to purchase an Ultrabook and nearly four weeks for tablets. In 2014, the weeks of income needed to purchase an Ultrabook declined by 47%, dropping to 5.9 weeks, and for tablets weeks of income declined by 60%, dropping to 1.5 weeks.
“Partly due to the increase in models and price points in e-commerce, Indonesia, like many other developing markets, is a good example of the commoditising of these devices,” adds Van Vactor as he believes that “Market maturation will continue this effect through the next year, especially as competition increases and affordability continues to prosper as a result.”
Over the next year, competition will continue to surge and ASPs will continue to decline, he concludes.
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