Weak Tablet Demand Causing Some Big Brands to Exit Slate Market
It would appear that it doesn’t pay to make tablets anymore, as tablet demand is weakening. The tablet segment growth has been slowing for about 2 years now and things got pretty serious, even affecting the iPad. Various companies are already pulling out of the segment, like MSI, which at some point made tablets like the one below.
Micro Start International (MSI) phased out the business and decided to focus on the gaming PCs only. In the meantime Acer and ASUS have resorted to niche products, focusing on the resurgence of laptops and 2 in 1 models. Chinese white box players have also taken a hit and those that have joined Intel’s China Technology Ecosystem have almost all stopped production.
Asustek’s tablet shipments are expected to fall below 3 million units this year, said sources within the supply chain, with Apple being the only player able to score strong profits in the segment. Wintel somehow still survives, with 2 in 1 devices and they registered growth. Seeing this involution, Asustek shifted some personnel to the VR area and augmented reality, plus boosting smartphones.
The same firm is expected to break even in operations in the first half of 2017. The Indian market remains a key for growth, helping the likes of Samsung and Lenovo still stay afloat. Lenovo itself has a huge variety of products, but they may also switch that in the future. The niche remains key here.