Last year, everyone wanted to get their hands on a tablet, whether it was a Samsung Galaxy Tab or an Apple iPad. However, reports show that tablet manufacturers are slowing down production this year. There are lots of factors contributing to the drop in sales, and it is taking its toll on tablet supply chains.
One of the biggest reason for the decline in tablet sales is that the people that want a tablet already have one. Unlike mobile phones, people don’t feel the need to replace their tablet every year. Most people only think about upgrading every two to three years. That’s why analysts are predicting a decline in tablet sales for the next year or two. Plus, there have been no major releases in tablets lately, so the technology is about the same as last year.
Another reason why manufacturers are making fewer tablets is because phablets (large mobile phones) are taking some market share. People would rather spend money on a device that can be used as both a phone and a tablet. This type of device is particularly popular with females because they only take a little more space in a purse. Phablets are also becoming more popular because it is no longer weird to hold a larger device up to your ear and bluetooth is readily available.
Tablet manufacturers are slowing down their production schedule by as much as 25 percent. Phone Arena reported that Samsung is placing fewer part orders to their suppliers. Apple is doing the same and expects a decline in iPad sales of 30 percent this year.
Ubergizmo reported that China is better prepared to handle the decline in tablet orders than smaller countries like Taiwan. Both countries are lowering their prices to gain supply chain control. Of course, the decline in sales is only temporary. People will be in the market for tablets in a year or two when their devices start to wear out.