While versions of tablet-style computers with touchscreen hardware have been available for over ten years, it was the 2010 launch of the iPad that saw the tablet become a mass-market device in Australia and across the globe. Not surprisingly, the world’s other electronics manufacturers have sought to replicate the iPad’s success with their own tablets, with the result that the number of tablet devices has proliferated. According to a study by Boston Consulting, more than 100 tablets have been introduced to the market since the iPad was launched, with expected sales of 370 million units by 2015.34 In Australia, Telsyte forecast that 2.37 million tablets will have been sold by the end of 2012 and, by 2016, the penetration of tablets will be comparable to current adoption levels for smartphones.35
As shown in Table 4, Australian consumers have access to a range of both budget and premium tablet devices, available in screen sizes from 17.8 to 26.9 centimetres.36
Connectivity
Almost all tablet models are offered with WiFi connectivity, that is, the device connects to the internet via a personal or public hotspot, or via an external modem. For an extra cost, tablets can be equipped with an internal 3G or 4G-enabled modem, providing the user with mobile network access. In July 2012, 50 per cent of tablet owners used a WiFi-only device, 47 per cent used a device with WiFi and mobile network access and the remainder had mobile-network-only devices.37
With the cost of mobile data significantly higher than that for fixed data services, the way in which users choose to connect to the internet may have implications for network service provider revenues. Providers have encouraged consumers to adopt tablets with monthly data access plans. However, the proliferation of free WiFi hotspots in cafes, libraries and shopping centres across Australia, and the high use of private WiFi in homes, enables consumers, at times, to avoid using the mobile network for internet access, diminishing the network service provider–consumer relationship. Research in the United States indicates that, even with a WiFi connection and mobile network access on a single device, most consumers (90 per cent) are opting to use the device only on WiFi.38 However, growing 4G network coverage, and the launch of 4G-compatible tablets in late 2012, may have a positive impact on the propensity of consumers to use mobile networks with their faster traffic speeds.
At this stage, the fixed-line networks are still used for the overwhelming percentage of data downloads.
Growth in use of WiFi hotspots
While home and work sites continue to account for the majority of internet users in Australia—15.4 million and 7.5 million respectively during the second quarter of 2012—internet use through WiFi hotspots has seen the highest proportional increases in Australia.39 During the second quarter of 2012, an estimated 2.06 million Australians used WiFi internet hotspots, a 32 per cent increase in activity compared to the second quarter of 2011.40 People aged 18–34 accounted for 45 per cent of users of WiFi hotspots, followed by those aged 35–44 at 18 per cent (Figure 5).
Table Selected tablet PCs available to Australian consumers at January 2013
|
Model
|
Operating system
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Standalone price RRP
|
Plan incl. tablet
(over 24 mths, p/m)
|
Connectivity
|
Screen size (diagonal)
|
Notes/
additional functions
|
Apple iPad (4th generation)
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iOS
|
(WiFi model)
16GB: $539
32GB: $649
64GB: $759
|
Telstra: from $49
Optus: from $48
VHA: from $47
|
WiFi-only model
WiFi + 4G
|
24.6 centimetres
|
Upgraded in October 2012 to enable 4G connectivity in Australia.41
|
Apple iPad mini
|
iOS
|
(WiFi model)
16GB: $369
32GB: $479
64GB: $589
|
Telstra: from $41
Optus: from $41
VHA: from $40
|
WiFi only model
WiFi + 4G
|
20.1 centimetres
|
Launched October 2012. Two cameras.
|
Google
Nexus 7
|
Android
|
$249
|
Not available
|
WiFi, Bluetooth, USB
Near-field communications
|
17.8 centimetres
|
Relatively inexpensive standalone price.
|
Samsung Galaxy Tab 2 8.9/10.1
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Android
|
8.9 – $599
10.1 – $469
|
Telstra: from $44 (8.9)
Optus: from $39.95 (10.1)
VHA: from $40 (10.1)
|
8.9: 4G, 3G, USB
10.1: 3G, WiFi, USB
|
25.7/22.6 centimetres
|
Facebook, Twitter, Google+
|
|
|
|
|
|
|
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Microsoft Surface
|
Windows 8
|
32GB – $559
32GB BTC – $679
64GB BTC – $789
|
Not available
|
WiFi, Bluetooth, USB
|
26.9 centimetres
|
Uses a cheaper ARM processor similar to mobile phones. Launched October 2012.
|
|
|
|
|
|
|
|
BTC=Black touch cover: a combined cover and keyboard.
Note: Prices are subject to regular change and may not be correct at the time of viewing.
Sources: CNET Australia, company websites.
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Figure Profile of users of WiFi hotspots in Australia
|
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Note: Relates to smartphone users aged 14 years and over.
Source: Roy Morgan Single Source.
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Device brand share and prices
Apple continues to dominate tablet ownership in Australia, with a July 2012 survey finding that over three quarters (77 per cent) of consumers who use a tablet own an iPad (Figure 6).42 This is a 10 percentage point increase over the year before. Other brands used by Australian consumers in July 2012 included Samsung (seven per cent), Acer (three per cent), Motorola (two per cent) and Toshiba (one per cent).
Figure Brand share of existing tablets owned by Australian consumers
|
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Source: Mackay, M., Australian Mobile Phone Lifestyle Index, 8th Edition, September 2012.
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As consumer demand for tablets has risen, prices at the lower end of the market have become increasingly competitive, with low-end devices flooding the market. Product offerings include entry level tablets priced from $79, though with reduced functionality, shorter battery life and a less responsive, resistive screen.43
At the higher end of the tablet market, several manufacturers have released a range of tablets that are both smaller and cheaper than their full-sized models.
Miniaturisation
The recent releases of smaller screen tablets by major manufacturers indicate a shift in demand toward lighter and more portable devices, though often at the expense of processing power or pixel density. At $170 cheaper than the equivalent capacity full-sized iPad, the iPad Mini, released in October 2012, has proven popular with consumers, with the initial stock selling out in its first weekend.44 Other smaller tablet devices have been in high demand, including the Google Nexus. While a comparison between the take-up and use of tablets by size is yet to be completed, some analysts have suggested that the smaller tablets may ‘cannibalise’ sales from the full size devices, potentially reducing revenues for those who sell the larger devices.45 Others have indicated that the smaller devices will likely occupy a different market niche, their light weight making them more suitable for use while outside the home, such as in restaurants, at the beach and other locations where a larger screen is more cumbersome.46 This, in turn, may heighten the potential for mobile network use among tablet users.
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