The thing about tablets is that unlike smartphones which could be justified as to why we might need to refresh them annually, tablets don’t need to be refreshed by customers on a yearly basis. In fact some customers might only upgrade their tablets once every 2-3 years which is why some analysts have predicted that tablets will see a decline in the years as less consumers are upgrading on a yearly basis.
That being said it looks like this prediction could come true. Recent reports have suggested that tablet manufacturers have reportedly begun to cut back on their orders from their supply chain as they expect that they will not be needing that many components in the near future. This is because like we said consumers aren’t expected to buy a new tablet every year.
That and the fact that phablets are also starting to eat into tablet territory makes it less compelling for users to get a separate device when their phablets are large enough for their personal use. The report claims that China’s supply chains are prepared to handle the decline in orders and have reportedly lowered their prices to make it more tempting for companies looking to cut costs.
Taiwan on the other hand is said to be less prepared compared to China. In any case what do you guys make of this situation? Are tablet manufacturers right in cutting back their orders and are analysts right in their prediction of the decline of tablet shipments?