Tablet Growth Offering Huge Potential

Chip manufacturer Intel is planning to return to double-digit growth in Latin America in 2014 with its strategy focused on tablets. Lower cost Android-based devices are gaining traction in the region with Intel supplying chips in 30 devices across 11 manufacturers. With mobile connectivity increasing and more and more consumers able to afford internet devices, emerging markets are expected to see a surge in tablet sales, BMI forecasts. We believe Latin America offers considerable growth opportunities for companies targeting the growing consumer market.

On The Up
Tablets As A % Of Total Computer Sales

Although Latin America continues to outperform Intel's overall growth, it is only expected to see single digit expansion in 2013. Intel's general director for Latin America, Steve Long, said entry-level tablets are driving demand in the region, with fewer consumers looking for desktops or even notebooks. In many ways, smartphones have become an entry point to the computing market for consumers, upgrading to a tablet is a logical step. Many see little need for the software and applications available on a more traditional PC form.

BMI expects strong growth in tablets and for the form factor to become dominant towards the end of our forecast period. Tablets will cannibalise sales of notebooks rather than desktops, as these are more attractive to consumer rather than enterprise users. BMI forecasts Chilean and Mexican consumers taking up tablets quickly in the early stages of our forecast, with Venezuela seeing faster growth in the latter stages. Currency problems and low consumer confidence will depress early tablet growth potential as well as a government program to bring notebooks to schools but we believe consumers will be keen to catch up and acquire new devices over the longer term.

As mobile operators roll out higher speed mobile broadband networks, BMI believes an increasing number of consumers will move beyond their smartphones to tablets for their entertainment and online needs. Consumers that cannot afford to acquire notebooks will look to tablets as a more affordable alternative. This offers great potential for companies supplying the components, distributing the units and developing new content for such devices to achieve strong growth.

This article is tagged to:
Sector: Consumer Electronics
Geography: Latin America, Argentina, Brazil, Chile, Colombia, Mexico, Peru, Venezuela

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