Enterprise Demand Driving Tablet Revenue Growth as Consumer Prices Contract, Says Report

Low-cost Android tablets are eating into Apple’s leading share of the tablet market as aggressive PC brand strategies are squeezing overall tablet pricing, said a Friday report from Futuresource. The launch of lower priced iPads contributed to a dramatic drop in the average price of tablets since they hit the market in 2010, it said. Some emerging markets saw growth as high as 30 percent last year, but worldwide tablet revenue growth will continue to slow as “consumer sales plateau and retail prices continue a steady decline from 2014,” it said. Enterprise sales will become an increasingly important driver of demand, said the researcher, especially in developed markets. Workplace tablet use has been driven by “bring your own device” trends, and tablets are being used in a complementary role rather than as a PC replacement, said analyst Simon Bryant. Issues of security and untested apps on tablets that previously suppressed enterprise demand have largely been addressed, and many tablets pack the same level of security as laptops, he said.