Malaysian consumers are trading big sized tablets for 7-8.9 inch ones, while LTE models are gaining popularity.
These are among the trends that are driving the continued growth in sales of tablets in the country, according to the latest Retail audit data by GfK.
From January to June this year, over 625,000 units of media tablets were sold in the country, generating USD201 million in revenue. This represents an 18 percent surge in volume turnover compared to the same period in 2013.
While all regions in the country showed stable growth, the bustling Central region is the major contributor to the growth, accounting for 53 percent of total quantity sold.
“The local tablet market hit its peak with a record sales volume of 114,000 units in January this year; driven by the seasonal festive and holiday season,” said Selinna Chin, Managing Director for GfK in Malaysia. “At the same time, our findings exhibit an apparent trend of screen size preference skewing towards smaller models, away from the larger screen sized ones which were previously garnering more sales.”
In the first half of this year, four in five (81 percent) tablets bought were 8.9 inch or smaller in screen size, as compared to just 59 percent during the same period last year. The 10-inch and above models accounted for a considerable 29 percent share previously but has shrunk to a little over 10 percent during the latest tracking period. Its share has been taken over by the 7 to 7.9 inch which increased by nearly 11 percent, as well as the 8–8.9 inch segment which also managed to grow its share by some 11 percent.
With the shift in consumer preference towards smaller tablets, average selling price of the device has correspondingly declined from USD410 to USD322—lower by around 27 percent compared to last year.
Meanwhile, expansion of LTE network coverage in the country has played a major role in driving the rising take up of LTE-enabled media tablets (with 4G only). The increasing number of offerings in the market — as many as 179 models from 48 international and local brands in June 2014 — saw LTE tablets generating the sales highest record of 98,000 units in the first half of the year.
“LTE technology in Malaysia still has some way to go as major Telco operators in the country are in the process of widening their coverage,” said Chin. “However, as infrastructure continues to improve with time, we can anticipate more new models with better features to heat up the already intense competition in the media tablets market, which will end up benefitting consumers as prices continue to fall and the gadget will become even more affordable.