Gartner Research

Market Trends: Maximizing Tablet Margins by Focusing on What Consumers Are Prepared to Pay For

Published: 22 January 2014

ID: G00259001

Analyst(s): Tracy Tsai


Prices of tablets are rapidly bottoming out. Tablet vendors face growing pressure to keep costs down while maintaining profitability without sacrificing competitiveness. To improve margin, product managers must focus on what users want, from design to marketing.

Table Of Contents


Market Trend

  • The Android Tablet Is Getting Commoditized With Little Hardware Differentiation
  • Margin Improvement in Short and Long Terms
  • Improve Margin by Focusing on Features Buyers Are Willing to Pay For
    • Product Planning Stage
    • Product Specification Design Engineering
    • Marketing and Sales

Contrarian View

  • If Android Tablet Vendors Continue to Focus Tablets on the Lowest Price With Lowest Grade Specifications, the Demand for Tablets Will Drop, Followed by Dropping Revenue and Margin

Vendors to Watch

  • Samsung
  • Asus
  • Acer
  • Lenovo

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