Africa, M/E Tablet Market Declining in Line with Global Trend

The Middle East and Africa (MEA) tablet market declined 24.2% year on year (Y-o-Y) in the final quarter of 2016 to total 3.07 million units, according to the latest figures announced today by International Data Corporation (IDC).

The global IT research and consulting services firm’s Middle East and Africa Quarterly Tablet Tracker shows that for 2016 as a whole, tablet shipments in MEA declined 14.7% Y-o-Y to total 13.8 million units, which is in line with global tablet market’s 15.6% decline over the same period.

“Tasks that were previously performed on tablets are increasingly moving to bigger-screen smartphones, so tablets are becoming redundant in the consumer ecosystem of gadgets,” says Nakul Dogra, senior research analyst for client devices at IDC MEA.

“Indeed, consumers are now investing more time and money into smartphones than tablets, which has led to a slowdown of tablet markets around the world, not just here in MEA. That said, there are still countries in Africa that harbor scope for further tablet penetration.”

In terms of vendor rankings, Samsung continued to lead the MEA tablet market in Q4 2016 with unit share of 17.6%, despite experiencing a significant decline in shipments of -28.0% on the previous quarter and -43.6% on the corresponding period of 2015. Lenovo remained in second place, increasing its share to 10.8% from 9.9% in Q4 2015. Apple climbed into third spot, capturing 8.7% share despite suffering a -41.2% Y-on-Y decline in shipments. UAE-based vendor i-Life rose to fourth in the rankings with a market share of 7.4%, spurred by the popularity of its low-cost offerings. Huawei’s shipments fell -39.6% Y-on-Y in Q4 2016 to account for market share of just 5.1%, a considerable drop from its 13.5% share in the previous quarter.

“With the lack of any noteworthy innovation taking place in much of the tablet space, there is little reason for the majority of consumers to upgrade to newer-generation tablets,” says Fouad Rafiq Charakla, senior research manager for client devices at IDC MEA. “This is prolonging the refreshment cycle for tablets in the region and causing an inevitable slowdown in the market.”

Taking the above factors into account, IDC’s tablet market forecast has been revised downwards. IDC now expects the market to decline -8.1% Y-on-Y in 2017 to total 12.76 million units. The longer-term forecast has also been revised downwards, with IDC now expecting the market to decline at a compound annual growth rate (CAGR) of -0.2% over the 2016–2021 period to total 13.64 million units in 2021.

“e-Tailers are expected to grow strongly in the coming years,” says Dogra. “Increasingly, local retailers are investing more in the online channel. Also, newer players are expected to enter the market in the coming year, which is going to further intensify competition in the online retail segment.

The above factors, coupled with aggressive pricing, will further drive the growth of the e-tailer segment, with IDC expecting that by the year 2021, 12% of tablets will be sold through e-tailers in the MEA region.”

IDC’s Middle East and Africa Quarterly Tablet Tracker provides insightful analysis of key market developments, covering vendors, operating systems, screen sizes, user segments and distribution channels, quarterly market share data, and a comprehensive 5–8 quarter and five-year forecast.

Hot this week

AFRACA-NIRSAL Masterclass Builds Financial Institutions’ Capacity for Climate, AI-Driven Agricultural Finance

The African Rural and Agricultural Credit Association (AFRACA), in...

Shell Reinforces Safety Commitment at CEO Contractors Forum

Shell leaders and Contractor CEOs at the Annual Shell...

Guinea Insurance Receives New Licence from NAICOM Post-Recapitalisation

L-R: Ademola Abidogun, Managing Director/CEO, Guinea Insurance Plc and...

AXA Mansard Reports N7.8bn H1 Profit, Capital Base Meets Recapitalisation Threshold

AXA Mansard Insurance Plc has sustained its growth momentum...

AXA Mansard Health Int’l Health Plan Covers Cancer, Other Chronic Health Conditions

 Mr. Tope Adeniyi CEO AXA Mansard Health AXA Mansard Health’s International Healthcare...

Topics

Union Bank Rewards 452 Customers in UnionKorrect Draws 

Union Bank of Nigeria recently rewarded 452 UnionKorrect account...

Ford Atlas Concept: The Future of Pickups

Ford Atlas Concept: The Future of Pickups The Ergonomic Interior Ford...

Independents to Account for 25% Oil Production by 2020

Independents are projected to account for about 500kbpd by the year 2020, representing 25% of crude oil production in Nigeria, from the current level of 10%. The development is seen as a reflection of the changing landscape of the oil and gas industry in Nigeria. Key Recommendations: • Integration of the upstream to other parts of the value chain may eventually be driven by the independents. • Challenges such as security, especially for independents operating in shallow waters. Local companies reiterated that security and community challenges have greatly altered their cost of production which cannot be fully ascertained. When coupled with Government take and interest from loans the cost per barrel increases. • Government is to ensure that an enabling environment is created - independents need to be able to deliver on capacity growth and funding.

How FIFA Can Revive its Brand Image

Former FIFA Vice President Jack Warner, who was one of 14 people indicted in a massive bribery scandal, vowed to reveal new evidence against the world soccer's governing body and its embattled president, Sepp Blatter. It's just the latest blow to a brand in crisis. Right now, FIFA is engaged in a high-stakes "win or go home" game of penalty kicks, with the sponsors who line their pockets with billions of dollars on the offensive side of the shoot-out getting ready for their kicks, while its own embattled brand is in goal, gearing up to block and deflect anything that comes its way. Meanwhile, a global consumer audience that has celebrated the game for generations is blowing the whistle and pointing to the penalty spot, its trust on the line.

Ecobank Digital Series: ‘Nigeria Will Take Full Advantage of the AfCFTA’

Chief Executive /Executive Director, Nigeria Export Promotion Council (NEPC), Segun...

Stock Market Slightly Upturns After Bearish Run… ASI Up 1bp

The local bourse slightly upturned at the close of trade...

‘SMEs Must Reinvent to Remain Competitive’ – Heritage Bank CEO, Sekibo

  Mr. Ifie Sekibo Managing Director/CEO Heritage Bank Limited Mr. Ifie Sekibo, Managing...

Akwa Ibom: Sustainable Development in Nigeria’s Prime Investment Destination

Seen from afar, Nigeria is one large African nation...