Go Beyond Smartphones: Unlocking Revenue Growth With Tablets

As the competition within the smartphone sector intensifies, it’s important for both brands and channel partners to pivot towards new avenues for revenue expansion. Tablets, a category ripe with potential, presents an unparalleled opportunity for growth.

The Strategic Landscape

With Average Selling Prices (ASPs) on the rise and the robust growth the tablet sector has demonstrated this year, it’s clear that tablets are positioned for significant future expansion. Market analysts project the tablet market will reach a substantial 25 million units by 2029. From a modest user base of 2 million in 2010, the number of tablet users surged to 77 million in 2023 and is projected to soar to 147 million by 2040.

Despite being predominantly dominated by global giants — many of whom have deep roots in the smartphone industry — the tablet market remains fertile ground. In 2023, the market, including both detachable and slate categories, witnessed shipments totalling 4.01 million units — a drop of 24.9% year-on-year (YoY) according to IDC. This decline was primarily due to a downturn in slate sales and a slowdown in the commercial segment, which includes government deals, education, and SMBs.

However, the detachable category and the consumer segment have shown promising growth. With pricing under $300, larger screens, and the increasing use of tablets for on-the-go productivity and entertainment, the consumer segment is poised for continued expansion.

Retail channels experienced an 11.9% YoY growth in shipments, while sales via company websites, led by Realme and Xiaomi, saw a staggering 54% YoY increase.

A deep dive into the past five years reveals the consistent presence of brands like Samsung, Lenovo, and Apple.

• Samsung maintained its dominant position with nearly 40% market share in 2023, a slight decline from its peak of 46% in 2022, but still higher than its market share in 2019, 2020, and 2021.

  
  

• Lenovo has seen a steady decline in market share, dropping from 42% in 2019 to just 14% in 2023.

  
  

• Apple has remained stable, with a market share hovering around 13-14%.

Notably, iBall and Huawei have exited the market, while Acer and Realme have made significant inroads. Realme’s entry into the top 5 in 2023 is a clear signal to competitors like Xiaomi that they cannot afford to be unworried.

2024: A Year of Momentum

The second quarter of 2024 marked a significant upswing in the tablet market, with shipments reaching 1.84 million units — double the figures from the previous year. This growth has been universal, spanning all segments—commercial (education and enterprise) and consumer, across both detachable and slate categories.

Reflecting the broader trend of premiumization, there has been a notable increase in demand for tablets priced between $200 and $300, driven by strong specifications and competitive pricing. As with smartphones, strategic discounts and cashback offers are proving to be powerful drivers of sales.

Market Leadership in Q2

• Samsung: Reigning supreme with close to 50% market share, Samsung dominates both the commercial and consumer segments. Its strong foothold in public sector education projects bolstered its commercial segment, while an aggressive inventory push in online sales led to a 200% growth, with units jumping from 3,00,000 to 9,00,000 quarter-on-quarter (QoQ).

  
  

• Acer Group: A distant second, Acer captured a 23.6% market share, driven by a 4,10,000 unit increase QoQ. The brand’s focus on the commercial segment, particularly key education projects, secured a 35.5% share in this area.

  
  

• Apple: Holding the third position with a 9.5% share, Apple performed well in both the commercial and consumer segments, recording YoY growth of 9.8% and 13.2%, respectively. This success was fuelled by new product launches and strategic price reductions on older models.

  
  

• Lenovo: Ranking fourth with a 6.9% share, Lenovo saw a 2.8% YoY decline in Q2 2024. However, the consumer segment showed a robust 46.4% YoY growth, with Lenovo’s tablets continuing to cater to media consumption and light productivity, supported by features like high-quality speakers and high-resolution displays.

  
  

• Xiaomi: In fifth place with a 4.7% share, Xiaomi achieved an impressive 85.8% YoY growth. The brand ranked third in the consumer segment, ahead of Lenovo, with a 14.1% share. Xiaomi’s strategy of focusing on both offline and online channels, along with targeting the entry-level market, has paid off.

Strategic Outlook

In the first half of 2024, the commercial segment, supported by significant education deals and solid momentum in the SMB sector, performed exceptionally well. Simultaneously, a heavy inventory push drove robust growth in the consumer segment. Looking ahead to the second half of 2024, the tablet market in India is expected to witness double-digit growth, propelled by a strong pipeline of education deals and heightened consumer demand during the online sales season. The revenue from tablets in India is projected to reach $5 billion in 2024, with a growth rate of approximately 6%.

With Samsung and Xiaomi leading both the smartphone and tablet markets, we can anticipate a concerted effort by brands like Realme to assert their presence. It is now crucial for mainline channels to collaborate strategically with these brands —particularly Samsung, followed by Xiaomi and Realme — to devise compelling offers that will drive sales from online platforms and company websites back to mainline, especially during the upcoming festival season.

This is not just an opportunity; it’s a mandate for those who wish to dominate the tablet market in India.

IDC data on the Indian tablets market for Q2 2024.

Note: Samsung and Acer combined showed a growth of 10.1 lacs of the total 10.4 lacs units.