Reseller News

2-in-1 tablet sales “taking off” as Microsoft boosts market share

While the overall tablet market contracts in 2015, 2-in-1 detachable tablets have become a bright spot.

While the overall tablet market contracts in 2015, 2-in-1 detachable tablets have become a bright spot, boosted by the launch of Windows 10 and Microsoft’s Surface range of devices.

According to a new Strategy Analytics’ Tablet & Touchscreen Strategies report, traditional PC vendors like Asus, Acer, and HP have found a niche in which they can “credibly compete” against mobile device heavyweights, as the segment is forecast to grow 91 percent globally over the next five years due to lower prices and better designs.

By 2019, 2-in-1 tablet growth will show a five-year compound average growth rate (CAGR) of 57 percent while slate tablet growth will amount to a 2 percent five-year CAGR.

“The timing could not be better for 2-in-1 tablets as Windows 10 makes the multi-mode computing experience smoother, Intel’s Skylake processors hit the market at the end of 2015, and Windows tablets have become more cost-competitive with Android tablets,” says Peter King, Tablet & Touchscreen Strategies Service Director, Strategy Analytics.

“Windows provides a familiar environment for traditional PC vendors to compete in the tablet market and also gives CIOs a higher level of comfort when considering higher-end tablets in the commercial setting.”

King says that the overall tablet market is set to decline 4 percent in 2015, with modest growth returning in 2016 due to more innovative designs and enabling technology in 2-in-1 and slate tablets alike.

The report also claims that Microsoft has legitimised the Windows-based Tablet with the Surface Pro 3 and the lower-cost Surface 3; in combination with the boom in 2-in-1 Tablet sales, Windows tablet market share will reach 10 percent in 2015.

“Vendors have refined 2-in-1 tablet products in the last year to be affordable and functional and there is plenty of headroom for the segment to grow in the next five years as White Box vendors seek to differentiate their low-cost products,” says Eric Smith, Senior Analyst, Tablet & Touchscreen Strategies.

“The growth rate among 2-in-1 tablets will far outpace those of traditional slate tablets, though from a smaller base, as they compete for the spot of the secondary computing device in the home.”