We've seen an explosion of tablets since the form factor was first launched a few years ago. In fact, this month marks the fifth anniversary of the iPad's introduction to the market, and while a number of vendors had attempts at making the form factor work as far back as the 1980s, Apple's iPad was the first tablet to be deemed a success.
The composition of the tablet market has changed considerably since the iPad's launch, with the reigning giants of Apple and Samsung coming under growing pressure from hundreds of low-cost brands from the Far East. So what does the year ahead hold in terms of tablet market dynamics? The latest figures released by IDC show that the Middle East and Africa (MEA) tablet market recorded its first ever year-on-year decline in Q1 2015, with shipments to the region declining 5.8 percent to 3.83 million units. Looking at the key market players, it is safe to say that the dominance of the aforementioned tablet giants is slowly fading. Indeed, the days of only seeing an Apple iPad, which suffered a sharp decline of 43.0 percent to 430,000 units, or a Samsung tablet, which suffered a decline of 5.5 percent year-on-year to 920,000 units, in the hands of the consumer are over, and not only because of the low-cost Far-Eastern brands that have flooded the market over the last couple of years. (Removing this since most traditional PC vendors, including Asus, HP & Dell declined significantly in Q1 2015).
Looking ahead, however, the market is likely to see a consolidation of brands; many new players have risen and fallen in recent years, and while plenty of low-cost vendors are still present in the market, they're number is expected to reduce in the long run. Today's mobile device landscape is as broad as it is diverse, with a plethora of options for the modern consumer to choose from. Over the last few years, smartphones and tablets have been growing side by side, with each having their own place in the consumer market. However, changes are afoot. Indeed, the tablet market, which has been aggressively cannibalizing the traditional PC space for years, is now coming under growing pressure itself from the so-called 'phable' phenomenon.
These devices combine the features of a phone and tablet, and are generally larger than regular smartphone devices but smaller than tablets. The year 2015 as a whole will see positive growth, with shipments increasing 5.8 percent year-on-year to total 17.66 million units. However, this represents a stark slowdown from the overall growth of 41.6 percent seen in 2014.The growing popularity of these all-in-one devices (if this refers to phablets, it is better to use the term phablets itself, as 'all-in-one' devices could misinterpreted as the 'all-in-one' PC, which is a product within desktops), particularly among consumers with lower purchasing power, is expected to lead to a slowdown in the tablet market's growth in 2015.
That is despite the tablet market now being supplemented by the arrival of 2-in-1 devices (tablets with detachable keyboards), as such devices remain expensive and uptake is not likely to pick up fast until prices drop. The anticipated slowdown in the tablet market's growth can also be attributed to the fact that the Middle East and Africa (MEA) region comprises of a number of large country markets like the UAE, Saudi Arabia, and Turkey that are reaching near saturation.
Most consumers have already made their tablet purchases in these countries, and the refresh cycles are not expected to be so frequent following the boom of the low-cost devices from the Far East. That said, the region's tablet market is still expected to see some growth over the next couple of years, because MEA is also home to more than 60 countries that remain underpenetrated. As such, the consumer segments in these markets continue to thrive despite the fact that newer devices such as phablets are taking share away from tablet devices. This is certainly a positive sign, as several other regions around the world are expected to see year-on-year declines in their consumer segments as a result of saturation in 2015.
The political turmoil that has plagued the MEA region in recent times has not really hurt the tablet market as much as it has the PC market and other technology segments. In fact, in certain cases it has probably acted as a driver leading to an increase in device purchases in certain countries as people feel the need to be constantly connected to social media in order to keep themselves up to date with current affairs.
The commercial segment is also gaining traction in the region, although the biggest growth in terms of unit shipments is set to come from the education sector. Many countries across the region have initiatives in place aimed at enhancing the education experience of students through the use of technology, and this includes a number of large tablet projects that are expected to be fulfilled over the next couple of years in countries such as the UAE, Qatar, Saudi Arabia, Turkey, South Africa, and Egypt.
Among the other sectors in the commercial segment we are also expecting to see a good uptake from the Healthcare and Hospitality industry. Ultimately, it's clear to see that there are numerous factors currently shaping the dynamics of the tablet industry. And while the MEA market may well look a little different in a couple of years from now, education deals and burgeoning consumer segments across the region will ensure that sales continue to flourish.
By Fouad Charakla
