Phablet "cannibalization" to stall Brazilian tablet sales

Device sales should decrease this year as tablet fever subsides, says IDC.

Tablet sales in Brazil should start decreasing in 2015 as phablets become a more popular choice, according to research from analyst IDC.

Sales in the segment should drop by 2 percent in 2015 following a worse-than-expected 2014, when tablet sales reached 9,5 million units rather than the 10 million predicted previously.

The forecast decline follows a tablet fever that started in Brazil in 2013, which led to tablets surpassing sales of desktopsas well as notebooks for the first time.

According to the analyst firm, one of the main reasons for the tablet decline is the increasing popularity of mobile phones with larger screens.

"Tablets are no longer a novelty and there is a market 'cannibalization' caused mainly by the phablet releases," says IDC Brazil analyst Pedro Hagge.

Negative consumer experiences with low-quality tablets will also impact future tablet sales in Brazil, according to the analyst.

Last year, tablet sales were impacted by the dollar hike against the Brazilian currency, as well as the World Cup and the presidential elections, according to IDC's Hagge.

Out of all tablets sold in 2014, those costing up to R$500 ($158) represented 85 percent of all devices sold, while devices costing between R$500 and R$1000 ($317) accounted for 10 percent of the total and devices with prices above R$1000 such as the iPad, accounted for only 5 percent of all tablets sold last year.

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