IDC Brasil, a market intelligence, consulting and conference services company for Information and Communications Technology industries, released the results of the IDC Brazil Tablets Tracker Q4/2017 study. Between October and December 2017, 1.2 million tablets were sold in Brazil, 2% less than in the same period in 2016. With these numbers, the Brazilian tablet market ended the year with a drop of 4.8% and a total of 3.79 million units sold – a performance that indicates a significant recovery compared to previous years – in 2015, sales registered a decline of 39%, and in 2016, 32%.
“After the sales boom between 2012 and 2014, several factors impacted the market, such as the rise of smartphones, which became more affordable, gained larger screens and took the place of the tablet as the preferred mobile device for Internet access, and the beginning of of the economic crisis in 2015, which made the dollar soar, increasing the prices of imported products”, comments Wellington La Falce, research analyst at IDC Brasil. The bad experience with cheap imported equipment, but with low quality and warranty also contributed to undermining the image of tablets.
According to him, after two years of sharp drop in sales, many brands left the scene, there was a consolidation of the market and those who stayed are more focused and with very aggressive strategies. As a result, in 2017 sales had a small drop and the segment reached a point of maturity.
“Today we see few brands operating in well-defined niches, with dedicated teams and a focus on quality and more attractive prices. The consumer did not leave the tablet aside, and even though entry devices, priced below R$500, still dominate the sector, with 72% of market share in 2017, there was a growth in the mid-range, of equipment between R$ 500 and R$ 1000, with 20% of units sold last year,” says the IDC analyst.
In terms of revenue, there was a decrease of 9%, with R$1.88 billion in sales during the year 2017, against R$2.08 billion in 2016. The average ticket value dropped from R$513 in 2016 to R$ 497 in 2017. The fourth quarter, however, saw the best revenue of the year, with higher demand for better products. In this period, 1.209 million tablets were sold – a decrease of only 2% compared to the last three months of 2016, but the average ticket for the period was R$524.00 – 7% above the same period in 2016, which boosted growth in revenue of 4.7%.
For 2018, IDC Brasil still predicts a decline in the tablet market, but with a better product mix and a trend towards stabilization and balance of supply and demand. “The forecast for this year is that sales will reach 3.58 million devices, with a retraction of 5.6% compared to 2017. The market will continue to focus on products for children, but the more mature public will also be looking for this category and looking for equipment with better specifications”, believes La Falce.
“After the sales boom between 2012 and 2014, several factors impacted the market, such as the rise of smartphones, which became more affordable, gained larger screens and took the place of the tablet as the preferred mobile device for Internet access, and the beginning of of the economic crisis in 2015, which made the dollar soar, increasing the prices of imported products”, comments Wellington La Falce, research analyst at IDC Brasil. The bad experience with cheap imported equipment, but with low quality and warranty also contributed to undermining the image of tablets.
According to him, after two years of sharp drop in sales, many brands left the scene, there was a consolidation of the market and those who stayed are more focused and with very aggressive strategies. As a result, in 2017 sales had a small drop and the segment reached a point of maturity.
“Today we see few brands operating in well-defined niches, with dedicated teams and a focus on quality and more attractive prices. The consumer did not leave the tablet aside, and even though entry devices, priced below R$500, still dominate the sector, with 72% of market share in 2017, there was a growth in the mid-range, of equipment between R$ 500 and R$ 1000, with 20% of units sold last year,” says the IDC analyst.
In terms of revenue, there was a decrease of 9%, with R$1.88 billion in sales during the year 2017, against R$2.08 billion in 2016. The average ticket value dropped from R$513 in 2016 to R$ 497 in 2017. The fourth quarter, however, saw the best revenue of the year, with higher demand for better products. In this period, 1.209 million tablets were sold – a decrease of only 2% compared to the last three months of 2016, but the average ticket for the period was R$524.00 – 7% above the same period in 2016, which boosted growth in revenue of 4.7%.
For 2018, IDC Brasil still predicts a decline in the tablet market, but with a better product mix and a trend towards stabilization and balance of supply and demand. “The forecast for this year is that sales will reach 3.58 million devices, with a retraction of 5.6% compared to 2017. The market will continue to focus on products for children, but the more mature public will also be looking for this category and looking for equipment with better specifications”, believes La Falce.
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