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Innovation

Tablet market reaches maturity in Brazil

Sales decline has been less severe in comparison to previous years and the trend is set to continue, says IDC.
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Written by Angelica Mari, Contributing Writer on

The Brazilian tablet market continues to decline - but the decline has been less severe than in previous years, according to IDC.

According to the IDC Brazil Tablets Tracker, the market has seen a 4,8 percent sales drop last year in relation to 2016, with a total of 3,79 million devices sold in 2017.

Despite the decline, the performance of the local tablet seems to have stabilized in recent years: in 2015, tablet sales seen a 39 percent drop in Brazil and a 32 percent reduction in 2016.

In terms of revenue, there was a decrease of 9 percent, with sales of 1.88 billion reais ($566 million) in 2017. The average ticket fell from 513 reais ($154) in 2016 to 497 reais ($149) in 2017.

After a significant drop in sales over a two year period, many brands have departed from the Brazilian market and there has been a market consolidation with vendors developing aggressive strategies ever since, according to IDC.

With only a small decline in sales in 2017, the analyst firm believes the segment has reached a maturity point in Brazil.

"Today we see a few brands working in well defined market niches, with dedicated teams and a focus on quality and more attractive prices," says IDC Brazil analyst Wellington La Falce.

According to IDC, Brazilian consumers did not abandon tablets entirely - and even though the entry-level devices priced at under 500 reais ($150), still represented 72 percent of the market in 2017, equipment priced between 500 and 1000 reais ($150-$300) has seen an upsurge in sales, with 20 percent of the units sold.

For 2018, IDC Brasil still forecasts a drop in the tablet market, but the year should be characterized by stabilization and a supply and demand balance.

This year's forecast is that some 3.58 million tablets will be sold, down 5.6 percent on 2017.

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