Phablets cause havoc in tablet market

The increasing size of smartphone screens is causing havoc in China’s tablet market.
Retailer Chinavasion reports exports of tablet computers are in rapid decline.
“Due to the tablet market boom in recent years, many factories were set up to cover the demand. However, today there’s an oversupply,” explains Eric Yu, product manager at Chinavasion.
“Factories are switching to produce other products, while others are merging into larger factories in order to stay competitive and save cost. Only a few tablet brands such as the E-Ceros have managed to grow in a downward market trend.”
Yu says the drop in sales of Chinese Android tablets is linked to the rise of large screen smartphones. In recent years, smartphones have transformed from a simple communication device into multi-media devices.
“There is an increasing demand for larger displays as they make it easier for consumers to enjoy rich media content. This… is making tablets superfluous.”
The definition of what is considered a phablet has changed over time. In the past, a 5 inch screen was enough to be considered as a phablet. Today, a 5.5 inch screen doesn’t even suffice. The current market consensus seems to settle with a display between 5.7 and 7 inch.
Marita Gu, sales manager at Chinavasion, adds: “Based on our quarterly figures we forecast that over the next 12 months 5.7 to 7 inch smartphones will show a 150 per cent increase in sales. This will move them into the mainstream phone market, with the majority of the demand coming from 6 inch mobile users.”
In a bid to secure early market share many major cell phone manufactures have been keen to offer large screen devices, however despite increased competition the prices of these new phones has remained relatively high.
Rose Li, PR manager with Chinavasion, says many flagship smartphones are becoming large screen devices, but the majority of these remain out of reach for the average consumer.
“This explains the growth in demand for large Chinese smartphones, because they are offered at a fraction of the price of big name brands.
Devices like the Nexodus Zen make it easier for consumers to switch to phablets.
“This drives the phablet market as most consumers are reluctant to go back to smaller screened phones.” says Li.

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