Young consumers fuel demand for media tablets in Phl
MANILA, Philippines - Global research firm GfK reported a nearly two-fold increase in sales of media tablets in the Philippines in the first quarter of the year as consumers led by the young and dynamic population continue to adopt new and innovative technologies.
GfK cited the widespread acceptance of media tablets as sales jumped 93 percent to 270,000 units from January to March this year compared to 140,000 units in the same period last year.
According to GfK retail audit report, tech savvy consumers in the country spent $65.8 million on 270,000 units of media tablets in the first quarter of the year as compared to only $49 million in the same period last year.
Benny Villanueva, GfK managing director in the Philippines, traced the robust sales growth in the first three months of the year to the strong uptake of media tablets by young consumers.
“The fact that three-quarters of the population fall below 40 years of age is a strong driver for the development of technical products as younger consumers are much more open to the adoption of new technology,†Villanueva said.
Another growth driver of the buoyant media tablet sector, he added, is the wide array of product brands and models that are available to consumers.
This year, 22 new local and international players jumped onto the bandwagon to introduce a total of 150 models into the market priced as low as $42 to as high as $1,012.
“Competition in the media tablet market got even more exciting with the entry of relatively big global names such as Sony, LG, Lenovo, Skyworth and Cloudfone,“ noted Villanueva.
“While major international brands have consistently played in the higher price brackets, local and Chinese brands have successfully developed the low price segment which brought down the average cost and made the device even more affordable.â€
GfK reported the average price of media tablets dropping by around 31 percent to $246 in the first quarter of the year from last year’s $356.
“Its greater portability, on top of similar basic functionalities with netbooks and laptops make media tablets a very much sought-after option for buyers seeking portable computing devices,†he added.
Meanwhile, basic Wi-Fi only models represent the best selling segment in the country as they are more affordable, averaging at around $42.
Its popularity is also attributed to the fact that majority of commercial establishments are now providing free Wi-Fi connectivity to their customers, thereby making those that are equipped with the more costly 3G feature less of a necessity.
“These days, it is common to see children using media tablets as a form of entertainment-on-the-go, proving that the product is now spanning a wider market to reach those even below 10 years old,†he said.
Villanueva said GfK sees the media tablet market in the country posting a double digit growth over the next few years.
“With its broad ranging target market, we are anticipating the media tablet business in the Philippines to continually enjoy double digit growth for the next three years,†Villanueva said.
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