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Sales of Tablets in Indonesia are Surging

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Eager tech consumers in Indonesia snapped up some 704,000 tablets worth more than USD385 million in the last twelve months, according to recent GfK Indonesia reports. Surging demand fuelled strong tablet sales over the last four consecutive quarters, with latest January to March 2012 period reaching 277,000 units sold.

Market growth hit a high in quarter three last year when both sales volume and revenue for the tablets market more than doubled over the second quarter. However, new adoption rate is showing signs of slow down, as reflected by growth momentum gradually tapering off in subsequent quarters. 

"GfK's data for the latest quarter showed a 13 percent increment in volume sales of tablets compared to the previous quarter but at the same time also revealed a slight decline in revenue sales," observed Mr. Guntur Sanjoyo, General Manager of GfK Indonesia. "Keen competition in the market has led to aggressive promotions as well as the introduction of more inexpensive models, resulting in more tablets selling at lower prices." 

The average selling price of tablets in Indonesia has subsequently been trending down each quarter. While the median price consumers paid for the device was US$651 a year ago, average cost of a tablet today has reduced considerably by over 25 percent and has become more affordably priced at US$485. 

"Although dominated by global brands, increasing number of local players have entered the market and are offering more affordable products which are going down well with consumers," said Mr. Sanjoyo. "Latest findings revealed that almost one in every five tablet purchased is by a local brand." Varying tablet trends are emerging in the different cities tracked by GfK. While Jakarta occupies the biggest market share, significant growth is being registered in Surabaya and Bandung. Average selling price of tablets across the cities fluctuate from as high as US$535 in Medan, to as low as US$415 in Semarang, where more local brands have penetrated the scene there. Here, sales from home-grown brands contribute almost 40 percent to the overall market value of tablets. 

One trend which is particularly consistent across all the Indonesian cities tracked is consumers' preference for small tablets as its smaller screen size translates to lower pricing. Nearly 3 in every 5 tablets (58%) sold has an eight inch and below screen size and the popularity of these handy tablets has directly fuelled manufacturers to offer more similar types. Currently, there are 49 out of 80 models of tablets in Indonesia falling under the 7 to 8 inch screen size category, representing more than 60 percent of the market's available models. 

"The tablet is the latest tech toy rapidly gaining acceptance in the country," commented Mr. Sanjoyo. "With the growing prevalence of models which comes with the telephony feature, coupled with the affordable subscription plans offered by the operators, we can anticipate tablet performance to turn in an excellent report card boasting at least a twofold growth in 2012," Mr. Sanjoyo.

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Tags: tablets  Indonesia