- Tablets priced above USD500 accounted for 29% of the total market’s sales volume, reduced by half this year
- The average price of media tablets declined by 30% from USD367 last year to USD259 this year
The penetration of media tablets has deepened in Vietnam as more entry level models are introduced to provide affordable options to consumers in this emerging market. There was a double digit jump in sales volume of tablets in the first five months of this year as the sales reached almost 582,000.
GfK’s point of sales tracking of media tablets in the country reported around 149,000 more units of media tablets being bought in January to May 2015, compared with the same time frame a year ago. However, sales dollar generated in contrast was lesser by five per cent due to the greater contribution of those lower value media tablet models.
“Over three in every four (76 per cent) media tablets sold so far in 2015 cost less than USD300, as compared to just one in two (50 per cent) in 2014; signifying a strong shift in market trends towards the low-end segment. The result of more media tablets being sold at lower prices brought about a shrinkage in the total market value in spite of strong consumer demand for the gadget,” observed Tran Khoa Van, Managing Director of GfK in Vietnam.
The report also highlighted that the high-end media tablets priced above USD500 which accounted for 29 per cent of the total market’s sales volume had reduced by half to make up only 14 per cent share in the first five months of this year. A similar trend is seen in the USD 300-500 segment, where its 22 per cent share last year was reduced to 11 per cent in 2015.
According to GfK’s findings, the average price of media tablets declined by 30 per cent from USD367 last year to USD259 this year. Although the number of brands catering to the Vietnamese market reduced from 56 to 49, the remaining players have introduced 20 more new models—from 278 to 298.
Another emerging trend is the rising popularity of smaller screen sized media tablets, specifically the 7.9” and below segment. Over seven in ten (71 per cent) media tablets purchased this year were of this size, up from its 62 per cent market share last year. On the other hand, it was the 9-10” segment which reported a dwindled market share by half—from 26 to 13 per cent.
“Price erosion is a natural progression of a tech product’s lifecycle and the average price of media tablets will definitely be drifting down further from the low of USD250 reported in the latest tracked month of May,” said Mr Van.
“The media tablet market is anticipated to achieve even higher sales in the third quarter of the year with the anticipated back to school promotions, with annual sales estimated to hit 1.9 million for the year,” he concluded.