Over one billion tablets to be in use by end of 2017

May 2nd, 2013, 00:08 Posted By: wraggster

Analyst suggests Microsoft could struggle to establish itself in the market.
With over one billion tablets expected to be in use by the end of 2017 - up from 200 million at the start of 2013 - Microsoft could face a significant challenge in becoming a major player in the market, says mobile analyst firm CCS Insight.
The company forecasts that in the period up to 2015, Apple will continue to grow its volume, despite seeing its market share drop on account of stiff competition from Android.
Furthermore, devices from Amazon and Google will also continue to undercut Apple’s dominance, while Android tablets will continue to thrive in the mid-to-low tier in both developed and emerging markets.
CCS Insight sees the biggest uncertainty in the tablet market lying with Microsoft’s ability to significantly penetrate the market, as this will go some way to determining whether or not the market in 2015 will be based on the duopoly of today or whether it will become a three horse race.
Marina Koytcheva, director of forecasting, at CCS Insight, commented: "Winning a solid share in the tablet market is an absolute must for Microsoft. However, it faces significant challenges with Windows 8. The current licence fees for Windows 8 Pro and Windows RT mean it's hard for manufacturers to compete effectively and make a reasonable margin on tablets at the right prices, despite Microsoft's effort to increase marketing support. Furthermore, the availability and quality of apps for Windows 8 are not strong enough."
According to CCS Insight, Microsoft needs to urgently address this "app gap" in order for its tablets to succeed. This is seen as home territory for Microsoft, which knows how to work successfully with developers.
The firm also believes that the optimisation of Microsoft Office for tablets is imperative, and that until this is resolved, Microsoft will remain on the back foot.
CCS Insight forecasts that the global tablet market will reach 419 million units and be worth $95 billion in 2017. Koytcheva explained: "Since June last year, we've seen faster tablet adoption than we had expected in some emerging markets such as China, as the prices fell rapidly. We now expect 181 million tablets to be sold worldwide in 2013, and have uplifted our forecast until 2017."

http://www.mobile-ent.biz/news/read/...of-2017/021234

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