Cheaper Retina iPad Mini, iPad Air Plus Fresh & Interesting Apps to Spur Global Tablet Market Growth in 2014 – Analyst
The global tablet market is facing possible 'structural challenges' beginning in Q1 2014 but the problem can be easily resolved with release of more affordable iOS slates, specifically the new breeds - the Retina iPad Mini and the iPad Air.
In part, KGI Securities analyst Ming-chi Kuo blames saturation as Apple and its Android rivals continue to flood the international market with units that reflect increasing capabilities and more affordable price tags.
It could be that further price cuts would prompt more consumers to buy the latest slate builds but Mr Kuo wrote in his new research note that tablets are relatively cheap now compared to the previous years.
"As they are very cheap already, lowering prices won't effectively stimulate demand," the analyst was reported by Apple Insider as saying.
Contents, however, could rekindle the softening tablet market growth in 2014. Of specific focus is tablet applications, likely those authored for optimised tablet use.
"Only new applications, which will bring about new growth momentum, will be able to solve the structural problems the sector faces," Mr Kuo said.
However, he was not clear on the exact types of applications that will tickle the interest of consumer and convince them in the process to spend more and take home refreshed models.
It should be noted though that at present, gaming apps dominate both the smartphone and tablet landscapes and recent indicators seem to suggest that Apple is gearing all its iOS devices to become viable alternatives to gaming consoles.
The revamped iOS 7, for instance, has been reportedly prepared to accommodating more exciting gaming applications while Apple is believed to be laying down the ground works for the full implementation of 64-bit computing standard on both the iPhone and iPad.
With the new set of instructions governing iOS devices across the board, 4GB of RAM or more residing on iPads and iPhones should be the next killer features to expect from Apple, analysts said.
Mr Kuo published the new projections as he affirmed earlier sentiments that the iPad Mini 2 global rollout, which Apple quietly started on Nov 12, will be hampered by supply shortages, affecting all markets where the 7.9-inch and Retina-toting tablet will be released.
By his estimates, the Mini 2 stocks will only reach two million, max, in the fourth quarter of 2013 and Apple will only increase its inventory by the start of the following year, possibly clocking some 4.5 million of unit shipments in the initial months of 2014.
But as the Mini 2 flexes its muscles, the trimmed down iPad Air will gradually lose considerable steam in the same period, which Mr Kuo attributes with the inevitable cannibalisation that the Retina iPad Mini will inflict on its bigger brother.
That should trigger the decline that the analyst has predicted.
The shipment estimates offered by Mr Kuo were mostly in line with the figures provided by IHS iSuppli analyst Rhoda Alexander, CNET said in a report.
Ms Alexander noted too that as more consumers scamper to grab the second generation iPad Mini, Apple supply will run thin and delivery period will be stretched for weeks, that is in Q4 2013.